photoguy
Thinks s/he gets paid by the post
- Joined
- Jun 15, 2010
- Messages
- 2,301
Actually I didn't mean dealing with turnover in the index but rather having to deal with a lump sum investment or sale. E.g., my "fund" is up 30% and hits rebalancing bands so I need to sell stuff off. This would be another batch of transactions with number dependent on how closely you want your sample to replicate the index (could be more than dealing with turnover).
I'm most worried about replicating the index (having enough stocks) for classes like small caps where much of the gains are attributed to a small number of companies.
I'm most worried about replicating the index (having enough stocks) for classes like small caps where much of the gains are attributed to a small number of companies.