Emerging Markets Small Cap Portfolio


Inception Date
March 5, 1998 		Ticker Symbol
DEMSX		 CUSIP Number
233-203-611

The Emerging Markets Small Cap Portfolio is a no-load mutual fund designed to achieve long-term capital appreciation. The Portfolio pursues its objective by investing in emerging markets equity securities that Dimensional deems to be small company stocks at the time of purchase. Dimensional will consider, among other things, information disseminated by the International Finance Corporation in determining and approving countries that have emerging markets. The Portfolio will invest in companies whose market capitalization is less than $2.3 billion. The Portfolio currently invests in companies in Brazil, Chile, China, Hungary, India, Indonesia, Israel, Malaysia, Mexico, Philippines, Poland, South Africa, South Korea, Taiwan, Thailand, and Turkey. Due to repatriation restrictions, the Portfolio currently holds but does not purchase securities in Argentina.

For a full description, please consult the Portfolio's prospectus.

Prices
Updated Daily
 
Date Closing Price NAV Change $ NAV Change %
October 10, 2008 $10.13 $-0.16 -1.55%

These Net Asset Values ("NAVs") have been prepared by the fund accounting agent. Dimensional Fund Advisors reserves the right to restate these NAVs, if necessary, at any time.


Performance
 
Updated Daily
Total Returns Year-to-Date
As of October 10, 2008 -53.86%


Updated Monthly
Total Returns One Month Three Month Year-to-Date
As of September 30, 2008 -18.06% -24.22% -39.06%
 
Average Annual Total Returns One Year Five Years Ten Years Since Inception
As of September 30, 2008 -39.03% 17.91% 17.85% 13.16%


Updated Quarterly
Average Annual Total Returns One Year Five Years Ten Years Since Inception
As of September 30, 2008 -39.03% 17.91% 17.85% 13.16%

Performance data represents past performance. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance displayed. The investment return and principal value of an investment will fluctuate such that an investor's shares, when redeemed, may be worth more or less than their original cost. Total returns include reinvestment of dividends and capital gains and are net of all fees and expenses. Prior to April 2002, certain international equity portfolios charged a reimbursement fee to the purchasers of shares of those portfolios.


Annual Expenses Total Operating
Expense Ratio		 Net Expense Ratio
(to investor)
As of November 30, 2007 0.78% 0.78%



Distributions
Last 12 Months
 

Type		 Amount per Share Record Date Ex-dividend Date Payable Date Ex-dividend Price
Dividend $0.1470 9/8/2008 9/9/2008 9/12/2008 $14.99
Dividend $0.1790 6/9/2008 6/10/2008 6/13/2008 $19.18
Dividend $0.0100 3/7/2008 3/10/2008 3/13/2008 $19.05
Dividend $0.0780 12/18/2007 12/19/2007 12/24/2007 $21.44
LT Capital Gain $1.3700 12/18/2007 12/19/2007 12/24/2007 $21.44
ST Capital Gain $0.1160 12/18/2007 12/19/2007 12/24/2007 $21.44


Top Holdings
 

As of September 30, 2008
% of Portfolio
ULTRAPAR PARTICIPACOES SA 0.83
CHAODA MODERN AGRICULTURE HOLDINGS LTD 0.72
EMBOTELLADORAS ARCA SAB DE CV 0.70
CIA PARANAENSE DE ENERGIA 0.69
INDUSTRIAS CH SAB DE CV 0.67
CORP GEO SAB DE CV 0.54
EMPRESAS ICA SAB DE CV 0.52
LI NING CO LTD 0.52
TV AZTECA SA DE CV 0.51
SPAR GROUP LTD/THE 0.47
PERDIGAO SA 0.47
CONTROLADORA COMERCIAL MEXICANA SAB DE CV 0.47
AECI LTD 0.45
NET SERVICOS DE COMUNICACAO SA 0.43
REUNERT LTD 0.43
METROPOLITAN HOLDINGS LTD 0.42
HIGHVELD STEEL AND VANADIUM CORP LTD 0.42
CHINA YURUN FOOD GROUP LTD 0.42
SUZANO PAPEL E CELULOSE SA 0.41
ELETROPAULO METROPOLITANA ELETRICIDADE DE SAO PAUL 0.41
Total 10.50


Sector Allocations
 
As of September 30, 2008 % of Portfolio
Consumer Discretionary 18.9
Consumer Staples 13.9
Energy 1.7
Financials 12.2
Health Care 4.4
Industrials 16.8
Information Technology 8.0
Materials 18.9
Other 0.2
Telecommunication Services 1.1
Utilities 3.9
Total 100.0

Sectors defined by MSCI.


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Market Risk
Even a long-term investment approach cannot guarantee a profit. Economic, political, and issuer-specific events will cause the value of securities, and the funds that own them, to rise or fall. Because the value of your investment in a fund will fluctuate, there is a risk that you will lose money.

Foreign Securities and Currencies Risk
Foreign securities prices may decline or fluctuate because of: (a) economic or political actions of foreign governments, and/or (b) less regulated or liquid securities markets. Investors holding these securities are also exposed to foreign currency risk (the possibility that foreign currency will fluctuate in value against the US dollar).

Small Company Risk
Securities of small firms are often less liquid than those of large companies. As a result, small company stocks may fluctuate relatively more in price.

Emerging Markets Risk
Numerous emerging countries have recently experienced serious, and potentially continuing, economic and political problems. Stock markets in many emerging countries are relatively small, expensive and risky. Foreigners are often limited in their ability to invest in, and withdraw assets from, these markets. Additional restrictions may be imposed under other conditions.

Dimensional Fund Advisors is an investment advisor registered with the Securities and Exchange Commission. 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 carefully before investing. Prospectuses are available by calling Dimensional Fund Advisors collect at (310) 395-8005; on the Internet at www.dimensional.com; or, by mail, DFA Securities Inc., c/o Dimensional Fund Advisors, 1299 Ocean Avenue, Santa Monica, CA 90401.

Mutual funds distributed by DFA Securities Inc.