Is there a preferred way to rebalance?
I believe many BH’s rebalance, quarterly, annually, or based on a percentage change, though target date funds might rebalance daily.
Assuming funds are in a tax advantage account, there might still be some cost and certainly noticeable challenges in rebalancing that frequently. But does daily rebalancing make a target date fund superior if expense ratios are equal? Or is daily rebalancing sub optimal, but an acceptable side effect of accepting the convenience target date funds offer by rebalancing on their own?
I believe many BH’s rebalance, quarterly, annually, or based on a percentage change, though target date funds might rebalance daily.
Assuming funds are in a tax advantage account, there might still be some cost and certainly noticeable challenges in rebalancing that frequently. But does daily rebalancing make a target date fund superior if expense ratios are equal? Or is daily rebalancing sub optimal, but an acceptable side effect of accepting the convenience target date funds offer by rebalancing on their own?
Statistics: Posted by tomwood — Sun Dec 29, 2024 10:32 am — Replies 7 — Views 296