Sentences with phrase «cost drag on a portfolio»
There's no hard and fast rule, but in general, it makes sense to keep costs below a half a percent to minimize cost drag on a portfolio.
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I have no view on the direction of currency movements, but I do prefer unhedged equity ETFs, because currency diversification can lower the volatility of a portfolio, and the cost of hedging is a long - term drag on returns.
This is only right — after all, the more often a manager enters the market to buy or sell, the greater the portfolio's trading costs, which over time can end up acting as a drag on performance.
No fees or trading costs are considered in these paper portfolios, yet in the real world they are a material drag on investors» performance.