admin wrote:I think that IPSA rebalance happened late yesterday, but they said it started the 6th. Perhaps people were making moves based on it. I have a little bit of that CFMITNIPSA IPSA index ETF (if you want to call it that, it acts more like a mutual fund that rebalances every day).
I got beat badly a couple of times owning individual stocks that made up parts of index funds when they got dropped from the index, and I did not realize that a major part of their float was held by an index fund.
I have also done pretty good buying the stocks that were dropped from an index through no fault of their own (e.g. they just get pushed out by weighting of some other stock), and then waiting for them to recover and be included again in to the index fund. Typically that works well when they are small sector concentrated indexes (which the IPSA probably counts as one), and the stock in question has a relatively small float with a large chunk being automatically purchased by the fund that is weighted to the index.
Overall, I have developed an aversion to index funds and index ETF's. Your never going to beat the market, by definition, and fees almost never make sense. I still own a few, and from time to time will park money in a low cost one for lack of a better strategy.
Interesting comments! Seems like you have successfully navigated through the complexities of the investment trade.
I have encountered many twists and turns in my over 50 years of investing experience...and the one thing I have learned (in many cases the hard way) is that investing is not a mug's game. For those forumites who are pondering what kind of investments to make, the following articles may be of interest:Index Funds vs. Mutual Fundshttp://www.fool.com/investing/2016/08/2 ... funds.aspxThe Illusion of Stock-Pickinghttps://blog.wealthfront.com/illusion-s ... ing-skill/