Small positions are basically noise. Identify the major index they closely match, and switch to them unless they’re in taxable.
Setup a three fund portfolio even if you won’t use it but do the exercise. Then every additional fund/ETF needs a solid argument. Like maybe you’re at fidelity for some stuff and use the zero total market and VTI in a 401(k) or something.
But tilting with tiny holdings is just mental confusion unless you have a strong defendable argument for why.
Taxable/tax advantaged can be a solid reason - if you have to hold bonds in taxable for whatever reason then munis might make sense, etc.
Setup a three fund portfolio even if you won’t use it but do the exercise. Then every additional fund/ETF needs a solid argument. Like maybe you’re at fidelity for some stuff and use the zero total market and VTI in a 401(k) or something.
But tilting with tiny holdings is just mental confusion unless you have a strong defendable argument for why.
Taxable/tax advantaged can be a solid reason - if you have to hold bonds in taxable for whatever reason then munis might make sense, etc.
Statistics: Posted by bombcar — Sat Jun 29, 2024 7:16 am — Replies 1 — Views 136