Comments on: Ask Dave: Index ETFs and Rebalancing (or lack therof) http://www.investingintelligently.com/2007/11/03/ask-dave-index-etfs-and-rebalancing-or-lack-therof/ Not just another (Canadian) financial blog Sat, 16 Oct 2010 15:22:19 -0700 http://wordpress.org/?v= hourly 1 By: Craig Sadler http://www.investingintelligently.com/2007/11/03/ask-dave-index-etfs-and-rebalancing-or-lack-therof/comment-page-1/#comment-8137 Craig Sadler Sun, 02 Nov 2008 19:44:00 +0000 http://www.investingintelligently.com/2007/11/03/ask-dave-index-etfs-and-rebalancing-or-lack-therof/#comment-8137 i'm with Dave. rebalance by buying not selling...e.g let's say you're aiming for 50% equities and 50$ bonds at the end of the year equities did quite well and your allocation is 35% bonds and 65% equities. you should aim to reallocate what you're *buying* not reallocating what you own. i’m with Dave.

rebalance by buying not selling…e.g let’s say you’re aiming for 50% equities and 50$ bonds

at the end of the year equities did quite well and your allocation is 35% bonds and 65% equities. you should aim to reallocate what you’re *buying* not reallocating what you own.

]]> By: Dave http://www.investingintelligently.com/2007/11/03/ask-dave-index-etfs-and-rebalancing-or-lack-therof/comment-page-1/#comment-7262 Dave Fri, 09 Nov 2007 02:44:39 +0000 http://www.investingintelligently.com/2007/11/03/ask-dave-index-etfs-and-rebalancing-or-lack-therof/#comment-7262 Nabloid: rebalancing doesn't always mean selling one thing and buying another. In my case it only involves buying. Nabloid: rebalancing doesn’t always mean selling one thing and buying another. In my case it only involves buying.

]]> By: Dave http://www.investingintelligently.com/2007/11/03/ask-dave-index-etfs-and-rebalancing-or-lack-therof/comment-page-1/#comment-7235 Dave Tue, 06 Nov 2007 06:02:22 +0000 http://www.investingintelligently.com/2007/11/03/ask-dave-index-etfs-and-rebalancing-or-lack-therof/#comment-7235 FourPillars. I agree, and same goes for US vs Canadian assets as well. FourPillars. I agree, and same goes for US vs Canadian assets as well.

]]> By: Nabloid.com http://www.investingintelligently.com/2007/11/03/ask-dave-index-etfs-and-rebalancing-or-lack-therof/comment-page-1/#comment-7234 Nabloid.com Tue, 06 Nov 2007 03:09:48 +0000 http://www.investingintelligently.com/2007/11/03/ask-dave-index-etfs-and-rebalancing-or-lack-therof/#comment-7234 I don't like rebalancing unless a sector has become overvalued or I see more opportunity elsewhere. Otherwise, why would I sell? If I sell, since I don't use a RRSP account, I must pay taxes and trading fees and that really eats up money if you take the compounding effects of that money that just disappeared in the form of trading fees and taxes. That money that just went to taxes could have earned me more money for the next twenty years... I don’t like rebalancing unless a sector has become overvalued or I see more opportunity elsewhere.

Otherwise, why would I sell? If I sell, since I don’t use a RRSP account, I must pay taxes and trading fees and that really eats up money if you take the compounding effects of that money that just disappeared in the form of trading fees and taxes. That money that just went to taxes could have earned me more money for the next twenty years…

]]> By: FourPillars http://www.investingintelligently.com/2007/11/03/ask-dave-index-etfs-and-rebalancing-or-lack-therof/comment-page-1/#comment-7229 FourPillars Sun, 04 Nov 2007 16:07:33 +0000 http://www.investingintelligently.com/2007/11/03/ask-dave-index-etfs-and-rebalancing-or-lack-therof/#comment-7229 A great point. I think "rebalancing" applies best to the tradition equities vs bonds allocations. As you get more specific (ie sectors) I think the benefits decrease. Maybe it's better to just apply rebalancing to tried and true asset classes? Mike A great point.

I think “rebalancing” applies best to the tradition equities vs bonds allocations. As you get more specific (ie sectors) I think the benefits decrease.

Maybe it’s better to just apply rebalancing to tried and true asset classes?

Mike

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