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The transaction costs would probably add up to more than 2% depending on how accurately you wanted to track the index, plus it sounds like a bunch of work. (Ed
by paulgb 9y ago
The transaction costs would probably add up to more than 2% depending on how accurately you wanted to track the index, plus it sounds like a bunch of work.
(Edit: I'm not saying it's actually worth 2%, which seems excessive)
- tyrust 9y agoWith a 0% maker and <=0.25% taker fee on GDAX [0], I'd be surprised if you ever came close to paying 2% of your total holdings in fees over the course of a year. [0] - https://www.gdax.com/fees/BTC-USD https://www.gdax.com/fees/BTC-USD
- JumpCrisscross 9y agoThe index they track reabalances annually [1]. [1] https://am.coinbase.com/documents/cbi-methodology.pdf https://am.coinbase.com/documents/cbi-methodology.pdf 6.10
- evrydayhustling 9y agoAnd, since those rebalances reflect only relative changes in supply, the turnover should be a small fraction of AUM.
- VLM 9y agoYou also have the job of figuring out how much you lose by not rebalancing and then figuring out the interval that maximizes total profit (oh and don't forget to include taxes in that calculation)