Rebalancing: Less is More?

///Rebalancing: Less is More?

Rebalancing: Less is More?

By | 2014-02-03T14:15:20+00:00 February 3rd, 2014|Uncategorized|7 Comments
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(Last Updated On: February 3, 2014)

We did a quick study on monthly vs. annual rebalancing for the IVY5 asset allocation portfolio.

We did buy and hold and moving average rule variations.

Result: little difference between monthly and annual return rebalances.



Buy and hold weights don’t differ that much from monthly equal-weight rebalanced weights


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Let’s recite: activity does not equal value. 

Again: activity does not equal value.

And one last time: activity does not equal value.

Okay, I still disagree with that statement because my system 1 refuses to believe it, but whatever…

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About the Author:

After serving as a Captain in the United States Marine Corps, Dr. Gray earned a PhD, and worked as a finance professor at Drexel University. Dr. Gray’s interest in bridging the research gap between academia and industry led him to found Alpha Architect, an asset management that delivers affordable active exposures for tax-sensitive investors. Dr. Gray has published four books and a number of academic articles. Wes is a regular contributor to multiple industry outlets, to include the following: Wall Street Journal, Forbes,, and the CFA Institute. Dr. Gray earned an MBA and a PhD in finance from the University of Chicago and graduated magna cum laude with a BS from The Wharton School of the University of Pennsylvania.