During the first quarter of 2025, the best performing asset classes were international large value stocks and international small value stocks. The following chart shows the 3-month, 1-year, and 30-year performance of many DFA funds (representing different asset classes) compared to the S&P 500 Index:
Market Returns for the period ending March 31, 2025
| DFA Fund / Index | 3 Month Return | 1 Year Return* | 30 Year Return* |
| S&P 500 Index | -4.27 | 8.25 | 10.42 |
| DFA World Core Equity | -0.87 | 5.56 | N/A |
| DFA U.S. Large Value | 2.29 | 3.72 | 10.10 |
| DFA U.S. Small | -7.81 | -2.17 | 10.05 |
| DFA U.S. Small Value | -8.19 | -4.18 | 10.91 |
| DFA Real Estate (REITs) | 2.35 | 9.41 | 9.67 |
| DFA Int’l Large | 7.42 | 6.24 | 5.61 |
| DFA Int’l Large Value | 11.20 | 11.13 | 6.64 |
| DFA International Small | 5.34 | 5.91 | N/A |
| DFA Int’l Small Value | 10.35 | 13.04 | 7.35 |
| DFA Emerging Markets Core | 2.82 | 7.09 | 6.56 |
| DFA 5-Year Global Bonds | 1.10 | 5.05 | 4.06 |
| DFA Inflation Protected Bonds | 4.39 | 6.49 | N/A |
*Note: Returns for periods greater than 1 year are annualized. Top 3 returns are in bold.
The first quarter of 2025 was a bumpy ride for investors as the global stock market faced a tariff tantrum in March that gave back most of the gains earned through mid-February. The global stock market* ended down -1.04% for the quarter with US large and small stocks being the biggest decliners. The biggest winners were investors in real estate and the international markets.
The potential for widespread tariffs represents real risk to slowing down the US economy, which may have already slowed due to reduced government spending and government layoffs. There also is an increased risk for inflation to reignite as importers pass along increased costs to consumers. While it remains to be seen how the tariff situation plays out, we caution against making any large portfolio adjustments in response to quickly changing news, especially since diversification has worked magnificently so far in 2025:
-4.28% S&P 500 (VFIAX)
7.42% International Large Stocks (DFALX)
5.34% International Small Stocks (DFISX)
2.35% U.S. Real Estate (DFREX)
4.39% Treasury Inflation-Protected Bonds (DIPSX)
1.10% Five-Year Global Fixed Income Portfolio (DFGBX)
Next, it’s that time of the year again where we all try to wrap up our tax returns before the April 15th deadline. Please provide us with a copy of your entire federal and state tax return upon completion or remind your tax person to do so.
Now, in order to comply with the provisions of the Gramm-Leach-Bliley Act, SWM’s Privacy Statement is available here for your review. The Privacy Act requires that we deliver this to every client on an annual basis. Also, the most current version of our ADV Part 2 and Form CRS are available on our website or by clicking one of these links: ADV Part 2 or Form CRS.
We greatly appreciate the trust you have placed in us to help guide you forward. Feel free to reach out if you need anything.
Warmly,
*As measured by Vanguard Total Stock Market (VTWIX)
About Christopher Jones
Christopher Jones is the Founder and President of Sparrow Wealth Management, a fee-only financial planning and investment management firm. Before entering the investment field, Chris was a management consultant for Deloitte Monitor. He graduated summa cum laude from Brigham Young University with a B.S. in Economics and a minor in Business Management.
