Most of what you wrote is correct, but this one isn't. VT doesn't have to rebalance internally - it's market-cap weighted. If you're slicing and dicing without tilting, you don't need to rebalance at all either among those funds. Rebalancing relative to one's fixed income assets or when you contribute or withdraw money is more complicated though.- Doesn't automatically rebalance -- if you hold something like VT, you don't have to rebalance when international does well and US does less well, or vice versa. The more slices you make, the more rebalancing you may need to do. This has costs associated with it (bid/ask spread) unless you are in a mutual fund (in which case there are still costs I think, they are just hidden inside the trades the mutual fund makes, which means the cost is distributed across all the mutual fund holders).
Statistics: Posted by brightlightstonight — Wed Dec 18, 2024 12:00 pm
