I want to get people’s input on this before building it.
I hold a bunch of index funds like FNCMX, FXAIX, and wealthfront which have expense ratios of .29, .09, and .12 percentage points per year.
Sounds great and cheap…until you do the math.
.29% expense ratio over a 50 year investing lifetime amounts to 13.4% accumulation of fees…
Let’s say your portfolio balloons to 10 million, that means I’m paying ~1.3 million to Fidelity over my lifetime!
I looked into how Nasdaq 100 rebalancing works…it’s totally trivial. It rebalances quarterly, stocks change once per year in December. So I’m paying an arm and a leg for something I could build myself fairly easily.
I’m contemplating building a desktop app that does this rebalancing. The purpose of the desktop app is so that credentials for your brokerage firm never leave your local desktop. Plus, people could continue using Schwab or Alpaca brokerage firms which they trust. The only thing my desktop app is doing is the rebalancing. The downside of local rebalancing is that I would have to notify users to login to the desktop app to rebalance their portfolio quarterly.
If this was free and I built this, would people actually use this? Or would they still get sketched out? Is the quarterly rebalancing too much to ask users to do 😂
Roast me with your thoughts