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> a competent financial advisor has the tools to trade the S&P themselves for clients (literally buying all 500 stocks individually and in correct proportions t
by djrogers 6y ago
> a competent financial advisor has the tools to trade the S&P themselves for clients (literally buying all 500 stocks individually and in correct proportions to the index).
That’s not the point though. A one time buy is easy - rebalancing quarterly, and rebalancing when a huge new company is added is the hard part (as evidenced by the need for buying $35-40Billion worth of TSLA and selling an equivalent amount of other stocks).
- MR4D 6y agoDepends on the scale. For vanguard, it’s a lot of work. For a financial advisor, the software to rebalance runs in a web browser on a laptop (heck, even an iPad!). Rebalancing has been figured out and automated very well for a few years now, with several different vendors all competing.