Late last month, the iShares MSCI USA Momentum Factor ETF, which offers maximum exposure to the momentum factor, was rebalanced, offering clues to market-beating strategies, contends Ryan Jackson, a Manager…
Tag: Portfolio Rebalancing
Six Year-End Financial Moves to Consider
By Justin Carbonneau (@jjcarbonneau) — There is a tendency to avoid looking at your finances and investments when things are bad, so I am guessing there isn’t going to be…
The Hidden Benefits of Rebalancing - And Some Tactics to Optimize the Process
Investors will seek any type of edge they can find. Many run complicated models to try to generate an excess return. Others endure the pain that generating long-term excess returns…
The Most Ignored Investing Premium
By Jack Forehand, CFA, CFP® (@practicalquant) — Harvesting premiums in investing is a very challenging task for two main reasons. First, to capitalize on a premium, it has to exist. And we never…
You Should Rebalance, and Here’s Why
A recent Morningstar article underscores the importance of rebalancing portfolios during a bear market. Here are some highlights: During a bear market, a buy-and-hold portfolio will see the equity allocation…
Why Rebalancing is Important
Those investors who have let the extended bull market drive their equity allocations higher without rebalancing “may be holding riskier portfolios than they initially signed up for,” according to a…
Excess Returns, Episode 7: The Importance of a Sell Strategy and Disciplined Rebalancing Approach
As difficult as it is to figure out the right stocks to buy, determining when to sell can be even more challenging. In this episode, we look at the important…
Rush Hour Traffic and Market Corrections
An article in CFA Institute highlights a “disappointing” statistic from a Gallup survey: “31% of investors would prefer to sit in gridlock than rebalance their portfolios,” and argues that “systematic…
Simple Rebalancing Rules Are Best
An article in The Economist discusses the importance of asset allocation for every investor, citing the benefits of keeping it simple: “There is a better chance of sticking to a…
Funds Could Boost Expected Rates of Return
Fiduciaries may be overlooking a “very simple and lucrative source of expected returns,” according to a recent article in Chief Investment Officer. The article explains how fund return forecasts are…
