Regular investments - strategy?

#1

I’m saving about 1000.- CHF every month. Now at my broker (Strateo) fees are grouped, which means e.g. I pay 15.- up to 2000.- volume and then 25.- up to 20’000.-.
My portfolio consists of two ETFs which means if I invested monthly (which I did up until now) I never came close to the limit where I’d have to pay more for the higher fee-group. So essentially I’d pay more in fees in comparison to how much I invested.

Now my strategy is to save up what I’d otherwise invest and then quarterly invest the whole sum, while rebalancing between the two ETFs. Does this sound like a smarter approach or am I leaving some gains/losses on the table by not investing each month?
Whats your investment-schedule / rebalancing strategy?

#2

If the political climate continues to worsen like these last weeks (nuclear threat, protectionism, hard brexit) delaying few month the action of investing is not a looser game. :blush:
On the long run, investing each 3 month or each month will not make a big difference. More important is regular investment and rebalancing.

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#3

Thanks for your answer. I totally see your point, but that would by definition be market timing which a passive investor of course doesn’t do :wink: But you’re of course right.

#4

Out of the box solutions:

  • Move to IB
  • Only invest in one ETF each month
  • Invest only each two or three month
  • Invest in 3a through VIAC for exemple. As the limit is 6768, you will invest 7 times (each month) with VIAC and only 4 times with Strateo

To answer your question based on data:
Let’s assume a 7% return each year with ETFs, so 0.58% each month
With 1000.- you will receive 5.83.- each month if invested.
If it’s cost more to invest, you need to group the investment.

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