Full replication love, regarding, remember, anybody, recent

joehogue

Does anybody remember how many portfolios is too many to use the full replication indexing approach?

Also, regarding some of the more recent threads: fellow AF users, listen to Jesus and just love each other.

Amen, hommies.

mik82

when portfolio is more than 1000 stocks, full replication usually not most cost effective.

strikethree

Really? Is it that many?

bpdulog

The text said needs to be <1000 liquid stocks - I remember that too.

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-My friend QQQbbe, we will never forget you.

oneboy

Additions/deletions are a whole separate thing...any index has to deal with that type of rebalancing. The idea with full replication is to avoid rebalancing that simply relates to regular volatility & moves in the value of the underlying stocks.