Hold or move to new position?

[Rob_bob]

If you held a short term position in a Cap weighted sector ETF that had a 0.10% ER and had a 10 year return of 198% then found another same sector Equal weight ETF that had a 0.40% ER and a 10 year return of 240% would you continue to hold the fund or switch to the fund with the higher return?

[Stimpy]

"Past performance is no guarantee of future results." - ibid

My recommendation.  Do what you want but be wary of going with the bigger gainer in the past because it could be their again!   (It might, it might also do much worse!)

Personally I would stick with what you have if it's already fulfilling your needs.  But if you have another reason to switch it around (other then past performance) then possibly consider making the change.

Just my two cents.

[NoStacheOhio]

If you held a short term position in a Cap weighted sector ETF that had a 0.10% ER and had a 10 year return of 198% then found another same sector Equal weight ETF that had a 0.40% ER and a 10 year return of 240% would you continue to hold the fund or switch to the fund with the higher return?

Is this in a taxable account?

[Rob_bob]

No it's not a taxable account.

As a spin on my original question, instead of already owning a position suppose I (or you) were looking to add to an asset allocation and you saw two funds in the same sector that have different investment styles, in this case one market cap weighted vs equal weighting.  How would you choose between them.  Would you simply go with the one that has the lower ER or would you look at total return over the past X years as well.  Past performance...etc. but that doesn't mean it will do worse going forward either.  And what if the one with the higher ER has historically outperformed over the long term?

So how do you screen your investments?

[NoStacheOhio]

No it's not a taxable account.

As a spin on my original question, instead of already owning a position suppose I (or you) were looking to add to an asset allocation and you saw two funds in the same sector that have different investment styles, in this case one market cap weighted vs equal weighting.  How would you choose between them.  Would you simply go with the one that has the lower ER or would you look at total return over the past X years as well.  Past performance...etc. but that doesn't mean it will do worse going forward either.  And what if the one with the higher ER has historically outperformed over the long term?

So how do you screen your investments?

My investment screen goes like this: is it the whole market (or proportional part of a total market approximation)? If yes, does it have fees below 0.1%? If yes, buy and hold.

[Rob_bob]

No it's not a taxable account.

As a spin on my original question, instead of already owning a position suppose I (or you) were looking to add to an asset allocation and you saw two funds in the same sector that have different investment styles, in this case one market cap weighted vs equal weighting.  How would you choose between them.  Would you simply go with the one that has the lower ER or would you look at total return over the past X years as well.  Past performance...etc. but that doesn't mean it will do worse going forward either.  And what if the one with the higher ER has historically outperformed over the long term?

So how do you screen your investments?

My investment screen goes like this: is it the whole market (or proportional part of a total market approximation)? If yes, does it have fees below 0.1%? If yes, buy and hold.

And if you were looking at two total market funds with the same ER but different % blend of holdings and one historically outperformed the other which would you buy?

[NoStacheOhio]

No it's not a taxable account.

As a spin on my original question, instead of already owning a position suppose I (or you) were looking to add to an asset allocation and you saw two funds in the same sector that have different investment styles, in this case one market cap weighted vs equal weighting.  How would you choose between them.  Would you simply go with the one that has the lower ER or would you look at total return over the past X years as well.  Past performance...etc. but that doesn't mean it will do worse going forward either.  And what if the one with the higher ER has historically outperformed over the long term?

So how do you screen your investments?

My investment screen goes like this: is it the whole market (or proportional part of a total market approximation)? If yes, does it have fees below 0.1%? If yes, buy and hold.

And if you were looking at two total market funds with the same ER but different % blend of holdings and one historically outperformed the other which would you buy?

The market cap weighted one