4 ms·

I don't get what you mean. You can buy and hold, and keep buying.

• ikeboy 10y ago
  But then it's not a one time-fee. More generally, your strategy only works if you're investing a large amount every time, it doesn't scale down. You can't put 10k into 5000 stocks, and even 500 stocks would be difficult.
  • grondilu 10y ago
    > But then it's not a one time-fee. I meant one time per line, not per portfolio. > it doesn't scale down. It scales down just fine if you're willing to accept that you're going to pay a lot in broker fees, with the only consolation that you'll pay them only once per line in your portfolio. If you have say 500 stocks and pay like $10 in broker fees per stock, in the end you'll pay $5000. That's not the end of the world for a long term investment.
    • icebraining 10y ago
      At a 0.05% expense ratio, you need to hold $250k for 40 years to pay $5000, not to mention the extra fees if you want to rebalance as the market changes. It doesn't seem to make sense for lower-end investors, which are many of us.
    • jonknee 10y ago
      > If you have say 500 stocks and pay like $10 in broker fees per stock, in the end you'll pay $5000. That's not the end of the world for a long term investment. If you only buy each stock one time. Which is absurd if you want a balanced portfolio you would need to buy a little bit of all 500 stocks a lot of times. A ETF lets you do this cheaply.