How often do you update your ETF portfolio?

Question

How often do you update your ETF portfolio?

Answer 1

I'm always watching my asset allocation and have stops on all my ETF's. As they increase in value I decrease the amount I'm willing to give back. This is especially true to narrow sector ETF's.

If I was to put a time frame on it.... if I'm not stopped out.... once a month (minimum).

Answer 2

It depends on your target asset allocation and portfolio volatility.

I don't hold more than 10% of my portfolio in any one stock (stock or ETF it doesn't matter; what matters is how much of your portfolio do you want to put at risk on that investment).  So if I put 6% in Stock X and it rockets up to over 10% of my portfolio (12-14%) then I start trimming the position.

Likewise, if my target is to hold 30% in foreign stocks/ETFs, I'll watch to see to see if my allocation gets out of line, say greater than 35% or less than 25%.  Then I'll adjust the portfolio.

If your in broad indexs, say 60% Total Stock Market Index, 30% International Index, and 10% Total Bond Index, then I don't expect to see big changes over a short period of time.  In which case, I may rebalance every 6months to a year.

Answer 3

I would not answer in terms of time: 60, 90, 120 days.  Think the best approach is to watch the price performance of your EFT every two or three days to look for any unusual movement up or down.  If you have four Effs and you have placed a 25 percent of your money in each, I would pare back on the one that may now be 60 percent of your portfolio. And be mindful to just dump one of your four Effs if it is just plain not working.  Example:  XLF, the financial ETF looks toxic to me.  But, try to be engaged with your portfollio.  It is often best to do nothing.  A lesson that I don't seem to remember in my own case!  Hit em straight!