ETF Portfolio — IC Top 50 ETFs part 2
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The ETF Portfolio contains some very small ETFs which may mean lower trading volumes, bigger spreads and difficulty in dealing sizes
I tend to ignore those to see go over time
Any comments, thoughts?
Hi Pete,
I think there are two things to consider – time horizon and asset allocation.
The longer you hold ETFs for, the less impact dealing spreads and liquidity will have. I’ve held many of my ETFs for 10 years or more.
And the more diversified your portfolio, the more you have to accept that some of the constituents are small. Some asset classes and sectors just won’t have a big liquid fund available.
I tend to think long-term with passive investments, so ongoing charges bother me more.
Deal size has never been a problem for me. With 50 ETFs in a portfolio, you don’t need that much of each one.
And I generally restrict deals to a few £K in any case. If I need more than £10K of something I would be likely to buy it in several goes.
Thanks,
Mike