What's more important, broad diversification or Dollar Cost Averaging?
What's more important, broad diversification or Dollar Cost Averaging?
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alphacentauri · External communityPost link
External question — Personal Finance Stack Exchange
Author: alphacentauri
Original post: https://money.stackexchange.com/questions/134148
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
The fee structure of my online broker would make a broadly diversified portfolio consisting of up to 8 ETFs very expensive in transaction fees if I decided to make monthly purchases for the purpose of Dollar Cost Averaging. Changing brokers is after all considerations not an option, therefore I would like to hear an opinion on what's the better option: reducing the number of different ETFs in the portfolio (and thereby lessening diversification) or not using Dollar Cost Averaging but instead rebalancing and upgrading the portfolio every six months?
Thank You!
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: alphacentauri Source score (net votes, not local likes): 1 Original post: https://money.stackexchange.com/questions/134148 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. The fee structure of my online broker would make a broadly diversified portfolio consisting of up to 8 ETFs very expensive in transaction fees if I decided to make monthly purchases for the purpose of Dollar Cost Averaging. Changing brokers is after all considerations not an option, therefore I would like to hear an opinion on what's the better option: reducing the number of different ETFs in the portfolio (and thereby lessening diversification) or not using Dollar Cost Averaging but instead rebalancing and upgrading the portfolio every six months? Thank You!
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