How Targeting the Size, Value, and Profitability Premiums Can Improve Retirement Outcomes

12 Pages Posted: 27 Apr 2023

Date Written: April 21, 2023

Abstract

Broadly diversified equity portfolios that pursue the size, value, and profitability premiums can help investors enter retirement with more assets, better sustain their retirement spending, and pass on larger bequests. Our study finds that even moderate exposure to the premiums can significantly improve retirement outcomes. The results are applicable to the design of retirement asset allocations, target date funds, and managed accounts.

Keywords: Retirement, retirement outcomes, asset allocations, target date funds, managed accounts

JEL Classification: D14, D15, G11, J26

Suggested Citation

Pellerin, Mathieu, How Targeting the Size, Value, and Profitability Premiums Can Improve Retirement Outcomes (April 21, 2023). Available at SSRN: https://ssrn.com/abstract=4425738 or http://dx.doi.org/10.2139/ssrn.4425738

Mathieu Pellerin (Contact Author)

Dimensional Fund Advisors ( email )

6300 Bee Cave Road, Building One
Austin, TX 78746
United States

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