During the past quarter, the best performing asset classes were international large value stocks, international small value stocks, and international large growth stocks. The following chart shows the 1-year, 5-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 December 31, 2025
| DFA Fund / Index | 1 Year Return | 5 Year Return* | 30 Year Return* |
| S&P 500 Index | 17.88 | 14.42 | 10.35 |
| DFA World Core Equity | 22.18 | 11.66 | N/A |
| DFA U.S. Large Value | 16.36 | 12.03 | 9.72 |
| DFA U.S. Small | 8.07 | 9.87 | 9.88 |
| DFA U.S. Small Value | 8.38 | 13.76 | 10.78 |
| DFA Real Estate (REITs) | 1.51 | 4.86 | 9.17 |
| DFA Int’l Large | 33.91 | 10.12 | 6.06 |
| DFA Int’l Large Value | 45.21 | 15.93 | 7.26 |
| DFA International Small | 36.33 | 8.92 | N/A |
| DFA Int’l Small Value | 52.07 | 15.06 | 8.50 |
| DFA Emerging Markets | 33.57 | 6.59 | 7.20 |
| DFA 5-Year Global Bonds | 4.33 | 1.30 | 3.80 |
| DFA Inflation Protected Bonds | 7.03 | 1.01 | N/A |
*Note: Returns for periods greater than 1 year are annualized. Top 3 returns are in bold.
The investment markets had a great year in 2025 as the global stock market* gained 22.18% and the global bond market** returned 4.33%. The standout performer, however, was international stocks***, which surged 32.18% for the year, supported by a declining U.S. dollar, attractive valuations, and increased spending by foreign governments. We have long advocated for international investing as part of a diversified portfolio, and while these markets have underperformed in past years, our patience was richly rewarded in 2025.
Speaking of patient investors, perhaps the world’s most famous one—Warren Buffett—retired at the end of 2025. While we don’t select individual stocks like Mr. Buffett, we share many of his core investment principles, including value investing and staying the course even in turbulent markets. We thought it would be fitting to share a few of our favorite quotes from the legendary investor:
- “The stock market is designed to transfer money from the active to the patient.”
- “Be fearful when others are greedy, and greedy when others are fearful.”
- “Our favorite holding period is forever.”
- “The most important quality for an investor is temperament, not intellect.”
- “The big money is not in the buying and the selling, but in the waiting.”
Mr. Buffett will always be remembered as an extraordinary steward of capital. We applaud him on a remarkable career and the generosity with which he has shared his investment wisdom over the years.
Lastly, we are getting to that time of the year when you need to start gathering all of your tax documents. You will receive your 1099s directly from Fidelity via email, so you will need to log into the Fidelity website to download them. Please note that we do not have your 1099s. As a reminder, if you have changed your tax preparer, please fill out a new consent form so that we can request your tax returns be sent to us. If you have not provided us with a consent form or you do your own taxes, then please upload your completed 2025 tax return into the “Shared Docs” folder in your eMoney vault.
As always, please don’t hesitate to call or email if you want to discuss something. We greatly appreciate the trust you have placed in us to help guide you forward.
Happy New Year!
* As measured by the DFA World Core Equity (DREIX)
**As measured by DFA 5-Year Global Fixed Income Portfolio (DFGBX)
***As measured by Vanguard Total International Stock Market (VTIAX)
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.