David Booth’s Dimensional and Passive Investing Concerns

Understanding the Concern Around Passive Investing

The recent discussions stirred up by David Booth’s Dimensional Fund Advisors have brought passive investing back into the spotlight. Passive investing, a strategy where investors buy a basket of stocks designed to replicate a particular index, has gained popularity due to its simplicity and low-cost structure. However, the concerns raised by David Booth and his firm highlight potential risks inherent in this strategy.