We aren’t making an equal weight index. So you don’t do anything. We are supposed to have more in NVDA when the value increases in a cap weighted index.NVDA is up 168% this year. How are you going to buy 168% of the rest of the index with dividends?Or one could just let the index drift a little and "rebalance" it slowly with dividends and cheaper basis during crashes.Seems like the rebalancing would cost more in tax than you would save in tax loss harvesting. Another solution in need of a problem, IMO.
(A direct index that has drifted away from the target index by 5-10% may only have a modest impact on returns.)
Statistics: Posted by the_wiki — Sun Aug 25, 2024 7:02 pm — Replies 65 — Views 11752