Dimensional World Allocation Funds

Diversified global solutions

Dimensional’s World Allocation Funds serve as single, globally diversified allocations of stocks and bonds, designed to target higher expected returns for a given level of risk.
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Aligning With Your Goals

Our strategic approach to asset allocation allows us to systematically pursue higher expected returns at your chosen level of risk, while also managing costs efficiently.

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Building World Allocation Funds

Global Diversification

Broad diversification gives exposure to thousands of securities globally. Our World Allocation Funds cover a range of asset classes, reducing risk while giving exposure to equity and fixed-income premiums.

Learn More:

Which Country Will Outperform? Here’s Why It Shouldn’t Matter.

Staying Focused on Premiums

We continually monitor each solution’s asset allocation and adjust weights as market characteristics shift. When possible, this rebalancing occurs with dividends or other cash flows to reduce transaction costs.

Learn More:

Dimensional Looks at Rebalancing Every Day. Indexers Can’t.

Explore Our World Allocation Funds

Dimensional offers a number of World Allocation solutions to suit investor needs. Browse our funds to get started.

View World Allocation Funds

Tailoring allocations for every investor

We offer five World Allocation Funds that progressively target higher allocations to equities relative to fixed income. The targets are a 20%, 40%, 60%, 80% and 100% allocation to equities. Increased equity allocations point to higher expected risk and higher expected returns.

Graphic with circle graphs showing higher expected risk on the X-axis versus higher expected return on the Y-axis for five allocation solutions. 20 percent equity, 80 percent fixed income; shows the lowest expected return and lowest expected risk and is followed by graphs showing increasing levels of risk and return in this order: 40 percent equity, 60 percent fixed income; 60 percent equity, 40 percent fixed income; 80 percent equity, 20 percent fixed income; 100 percent equity.

For illustrative purposes only. The risk and expected return shown in this illustration are not reliable indicators of the funds actual or future risk profiles. There is no guarantee strategies will be successful.

Managing risk and return through a broad opportunity set

Investment opportunities exist all around the world, but the randomness of global stock returns makes it extremely difficult to figure out which markets will outperform. Broad diversification can capture returns from around the world and potentially offset a weak market with stronger returns elsewhere.

A square graphic filled with a pattern of coloured squares. Each colour represents a different country. The Y-axis shows yearly returns from low to high. The X-axis shows years, from 2006 to 2025. The positions of the boxes indicate that returns for countries in developed markets vary widely from year to year and have no consistent pattern. An accompanying table shows average annualised returns in percent from highest to lowest. The ranking is USA 10.4; Denmark, 9.3; Netherlands, 8.6; Singapore, 7.8; Switzerland, 7.6; Sweden, 7.2; Canada, 6.9; Australia, 6.6; Hong Kong, 6.5; Germany, 6.5; Spain, 6.1; France, 5.6; United Kingdom, 5.4; Norway 4.6; Finland, 4.3; New Zealand, 4.2; Japan, 4.2; Italy, 3.8; Austria, 2.6; Belgium, 2.4; Ireland, 1.8; Portugal, 0.4.

Past performance is no guarantee of future results. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio. Diversification neither assures a profit nor guarantees against loss in a declining market.

Harnessing the factors that drive outperformance
Dimensional’s investment approach is grounded in economic theory and decades of empirical data. Research suggests there are six main drivers of higher expected returns across equities and fixed income, allowing us to apply them to our World Allocation Funds.1
Six-panel graphic showing six factors that drive outperformance in equity and fixed income. Top left panel shows square made of circles with blue circles in bottom half of square representing small company stocks. Top middle panel shows square made of circles with blue circles in left half of square representing value stocks. Top right panel shows square made up of circles with randomly located blue circles representing high profitability stocks. Bottom left panel shows line chart with maturity on x-axis and yield on right-axis and highlighted section of curve indicating wider term spreads. Bottom middle panel shows two stacked bars, left for narrow credit spreads and right for wide credit spreads, with each bar consisting of rectangles indicating credit ratings of AAA, AA, A, and BBB. Bottom right panel shows line charts moving from left to right representing global currencies of issuance with arrow on y-axis pointing upward indicating higher yields.
1. See Building World Allocation Funds for more information.
Enhancing returns through careful cost management
Costs can detract from investment returns, but while ongoing charges figures (OCFs) are easily observed, trading costs are less visible. We carefully manage trading costs to minimise their impact on investor returns.

A key component of this is our flexible approach, which allows us to prioritise buying and selling at a favourable price. Passive and traditional active managers, by contrast, are compelled to focus more on timing and quantity.
Graphic with five bar charts showing portfolio expenses of each World Allocation fund compared to 50th percentile of Morningstar Category average. First chart, labelled Cautious Allocation, 0.31% for 20/80 fund versus 0.61% for category. Second chart, labelled Moderately Cautious Allocation, 0.32% for 40/60 fund versus 0.77% for category. Third chart, labelled Moderate Allocation, 0.33% for 60/40 fund versus 0.90% for category. Fourth chart, labelled Moderately Adventurous Allocation, 0.35% for 80/20 fund versus 0.86% for category. Fifth chart, labelled Global Flex-Cap Equity, 0.35% for equity fund versus 1.10% for category.
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Disclosures

This is a marketing communication. Please refer to the prospectus of the UCITS, KID and KIID before making any final investment decisions.


The World Allocation 20/80 Fund, World Allocation 40/60 Fund, World Allocation 60/40 Fund, World Allocation 80/20 Fund and World Equity Fund are sub-funds of Dimensional Funds plc which is structured as an umbrella fund with segregated liability between sub-funds, established as an open-ended investment company with variable capital under the laws of Ireland with registration number 352043. Dimensional Funds plc is authorised by the Central Bank of Ireland as an undertaking for collective investment in transferable securities (UCITS).


Dimensional funds are offered solely under the terms and conditions of the respective fund’s current prospectus and applicable UCITS Key Investor Information Document (KIID) and applicable Packaged Retail and Insurance-based Investment Products (PRIIPs) - Key Information Document (KID). Consider the investment objectives, risks, and charges and expenses of the Dimensional funds carefully before investing. For this and other information about the Dimensional funds, please read the prospectus, KID and KIID carefully before investing. The latest version of the prospectus, applicable UCITS KIID (available in English) and applicable PRIIPs KID (available in English and the appropriate local language) may be obtained at www.dimensional.com or by contacting the fund’s administrator at +353 1 242 5536, its distributor Dimensional Ireland Limited at +353 1 576 9750 or, if in the United Kingdom, its sub-distributor Dimensional Fund Advisors Ltd., at +44 (0)20 3033 3300.


In addition, a summary of investor rights is available at www.dimensional.com/ssr. The summary is available in English.


Dimensional Funds plc are currently notified for marketing into a number of EU member states under the UCITS Directive. Dimensional Funds plc can terminate such notifications for any Dimensional funds at any time using the process contained in Article 93a of the UCITS Directive. Dimensional Funds plc are also recognised in the United Kingdom by the Financial Conduct Authority under the UK’s Overseas Funds Regime and can be marketed in the UK.


The principal risks of investing in the Dimensional funds may include one or more of the following: market risk, small companies risk, risk of concentrating in the real estate industry, foreign securities and currencies risk, liquidity risk, political risk, tax risk, settlement risk, risk associated with availability of market information, emerging markets risk, banking concentration risk, interest rate risk, risk of investing for inflation protection, fixed income risk and/or fund-of-funds risk. To more fully understand the risks related to an investment in the funds, investors should carefully read each fund’s prospectus, KID and KIID.