▲ 0 r/stocks
Funds like VT that don't have the typical index problems
I'm aware true index funds have a few issues as a result of buying stocks automatically once they go up since market cap increases, and then selling them after they go down, to effectively do a poor job timing the market. I saw that some researchers pegged the cost of this at around 0.3%, so nothing crazy but much larger than the fees. I'm wondering if alternatives to VT or VTI/VXUS exist that have similarly low fees, capture the whole market, and solve these issues (by smoothing out rebalancing over time or increasing weight on small cap or something).
Thinking about making this change with huge ipos coming up for spacex and openai, although I think it may be a good idea in general as well.
u/Grunyarth — 2 days ago