A.I.M. For Exchange Traded Funds

[ls7550]

If you then periodically rebalance between those, reducing the ones that have risen the most, adding the proceeds to the ones that have performed less well, then you'll also be doing a bit of a AIM like style across the individual accounts.

One way to do this is to maintain weightings of each individual AIM account (cash+stock) and when any one becomes 50% more than the median then reduce that account by 20% to 25% and add the proceeds to the AIM with the lowest weighting.

For example if I had 5 AIM's each individually holding a single ETF then the initial weightings (cash+stock) might be 20% of the total fund value each. When any one AIM rises to 30% weighting of the total fund value then reduce that account by 20% to 25% e.g. 6% to 7.5% (dragging its weighting down to 22.5% to 24% relative to the whole), and add that 6% to 7.5% to another AIM account that might have declined to perhaps 14% weighting (uplifting it by 6% to 7.5%).

Such action will typically involve just one partial ETF sale and another ETF buy. If in contrast you attempted to rebalance all parts back to equal weightings periodically then that would involve more sells/buys (higher trading costs).