In my retirement accounts, I have lazy portfolios consisting of a few index fund ETFs that my broker offers commission-free trades on. I would like to rebalance these funds not only to keep my portfolio in line with my desired risk, but to take advantage of the upswings and downswings of the market (buy a fund as it dips, sell it as it rises).
Most of the advice about rebalancing suggests that you should not do it too often for one of two reasons:
- You pay trading fees each time that eat into your profit.
- Selling a stock creates income, which generates taxes.
However, neither of these applies to these accounts. Given that, are there other reasons (other than the value of my time) that I should rebalance, say, quarterly instead of daily or weekly?