Re: Do you own Cryptocurrency? A poll
Posted: April 14th, 2021, 1:19 pm
seekingbalance wrote:BCI25 looks exactly like the kind of thing I am after. I’d prefer one without the top 5, a sort of ftse250 type of thing, with perhaps coins 6-30 instead of 1 to 25, but still, not bad.
Fees look excessive though, 2% on initial then 2% on the rebalance. How do you know how much this lenient will amount to over a year?
I too would like a 'mid-caps' version, but at least on the BCI25, they limit the maximum weight which helps steer it in that direction.
Indeed - fees are a bit steep, but they limit the maximum amount of rebalancing each month. The 2% is just on what they have to sell and buy, which may be just 10% of the index or less, depending on relative price movements. To me, it's a small punt on one or two of the index 'going large'. To construct a portfolio oneself would be even more expensive. I am not 'investing' here, just buying a lottery ticket for a bit of fun, so I can live with some attrition in return for a very convenient platform. The back testing in the article I linked included the effect of rebalancing fees.