Need to rebalance International vs Domestic?

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Raybo
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Need to rebalance International vs Domestic?

Post by Raybo » Fri Nov 15, 2019 9:55 am

if someone has allocated their international stocks at the market cap (for argument's sake, lets say 50/50 US/International is the market cap) and the investments are in general index funds (TSM for US and International ex-US) is there a need for them to rebalance these? Won't they fluctuate as the market cap fluctuates?
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MotoTrojan
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Re: Need to rebalance International vs Domestic?

Post by MotoTrojan » Fri Nov 15, 2019 9:59 am

Raybo wrote:
Fri Nov 15, 2019 9:55 am
if someone has allocated their international stocks at the market cap (for argument's sake, lets say 50/50 US/International is the market cap) and the investments are in general index funds (TSM for US and International ex-US) is there a need for them to rebalance these? Won't they fluctuate as the market cap fluctuates?
If truly at market weight then yes, it should maintain balance except for expenses and tax-drag (if one were paying taxes from the holdings).

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