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- Joined
- Jun 25, 2005
- Messages
- 10,252
I wonder then if Schwab is sandbagging by choice of that particular portfolio with the high cash allocation and reporting a -0.34% to make other Schwab portfolios look better than that index-fund moderate portfolio.The return was calculated with monthly rebalancing and with divs/int re-invested. You can easily account for the difference in YTD performance by (1) noting the difference in composition between the funds you mentioned and the bucket of five indexes and (2) noting whether the actively managed funds did any trading (beyond rebalancing) during the period.
The portfolio you listed was composed of non-actively-managed funds (that is, index funds) and yet the -0.34% is about 0.8% to 1% under the Vanguard index funds of funds with not-dissimilar compositions. The Vanguard fund performances include re-invested dividends and expense ratios. They are the YTD numbers that an investor in those funds would have received.
Now rebalancing at month-ends would not have helped as much as rebalancing on better days such as February 11.
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