I had put 2,500$ in this on quantbase. One thing I wonder about is there maybe a reasonable minimum allocation for this because all of the monthly rebalacing with such a large number of stocks if you do it with too small of a value, could that not slowly eat away at the portfolio just because of not always getting the best fill price with bid/spread asks on smaller stocks? A few cents here and there spread between 50 trades rebalacing each month won't matter on a large investment, but will it cause issues if you put in only a small amount? I wonder if you implemented this specifically to not rebalance in a way that is not cost efficient for smaller investment amounts, and if you should be advising with a minimum investment amount of this one?
Good point. The way the monthly "rebalances" for this fund (and other multi-asset funds on Quantbase) work is: we test every month to see whether the stocks in the portfolio still meet the conditions that caused their inclusion, then rebalance out of them if they do not. In a 50-stock portfolio, this causes churn of about 2 stocks a month. The points on increasing minimum investment are a good point. We have $50 minimums to ensure accessibility. It may be more prudent to make them higher
From my account activity it looked to me like it was rebalancing it to a set allocation at the end of the month because of a whole bunch of small sales and purchases at the start of July. Looked like roughly 42 of the stocks were rebalanced at that point. The majority of the purchases and sales are too small to have been a complete sale of one stock for another.
What the total asset value of the funds & how has the growth been ?
I had put 2,500$ in this on quantbase. One thing I wonder about is there maybe a reasonable minimum allocation for this because all of the monthly rebalacing with such a large number of stocks if you do it with too small of a value, could that not slowly eat away at the portfolio just because of not always getting the best fill price with bid/spread asks on smaller stocks? A few cents here and there spread between 50 trades rebalacing each month won't matter on a large investment, but will it cause issues if you put in only a small amount? I wonder if you implemented this specifically to not rebalance in a way that is not cost efficient for smaller investment amounts, and if you should be advising with a minimum investment amount of this one?
Good point. The way the monthly "rebalances" for this fund (and other multi-asset funds on Quantbase) work is: we test every month to see whether the stocks in the portfolio still meet the conditions that caused their inclusion, then rebalance out of them if they do not. In a 50-stock portfolio, this causes churn of about 2 stocks a month. The points on increasing minimum investment are a good point. We have $50 minimums to ensure accessibility. It may be more prudent to make them higher
From my account activity it looked to me like it was rebalancing it to a set allocation at the end of the month because of a whole bunch of small sales and purchases at the start of July. Looked like roughly 42 of the stocks were rebalanced at that point. The majority of the purchases and sales are too small to have been a complete sale of one stock for another.