How to Fix the Flawed Tilt with the PP's Equity Component

[ochotona]

I was on Schwab today, and submitted this email to their team for MachineGhost and the rest of us:

Product suggestion, intelligent.schwab.com

Product concept: Schwab intelligent no-cost robot-advised portfolio rebalancing and tax-loss harvesting for the self-directed investor"

An interesting way make a new service offering by "dumbing down" intelligent.schwab.com would be to allow the customer to design his or her own portfolios with fixed percentages of their own selected ETFs... then, if the portfolio drifts off the allocation, it would adjust in as tax-efficient a manner as possible.

The rebalancing should be able to be specified as follows:

- at customer supplied fixed time intervals (specified in months)
- when any rebalancing bands are crossed, also customer sepcified; for example, if the initial allocation for SCHZ is 25%, the customer could order the entire portfolio to rebalance is SCHZ drops above or below some percentage, like plus-minus 2, 5, 10, 15 %. The initial allocations and rebalance bandwidths would be custom for each ETF, of course

Thanks for you responsive service on Schwab software bugs in the past. I have report a big one in the past, and you fixed it quickly. I hope you will take a look at this suggestion.

[Jack Jones]

If one only had access to an SP500 fund and a small cap index fund, what's the best you could do? 50/50 in each?

[mathjak107]

i kind of like the equity break down in that global x permanent portfolio fund . nice mix in that section .

[Jack Jones]

If one only had access to an SP500 fund and a small cap index fund, what's the best you could do? 50/50 in each?

For the two funds I'm interested in (VSCPX and FXAIX) a 50/50 split would result in:

Market Capitalization
Size    % of Portfolio
Mega    25.8%
Large    18.2%
Mid    25.3%
Small    25.3%
Micro    5.4%

Not bad.