Portfolio a alokace
Q2 Portfolio Review: Focus on Costs, Not Performance
Key takeaways
- Portfolio reviews make sense once a quarter, not every week.
- Q2 is a good opportunity to check the TER of all funds and look for unnecessary overpayment.
- Conversion fees and spreads can amount to more per year than the investor realises.
- Rebalancing makes sense when allocation deviates by 5 or more percentage points from the target.
- Low costs are the only return that is guaranteed in advance.
A quarterly portfolio review should start with costs, not performance — because you control costs directly, but you cannot control market performance. Q2 is a natural checkpoint for sitting down and examining what the portfolio actually costs.
Why focus on costs?
Market performance is variable and unpredictable. Costs, however, you control — and every tenth of a percent you save on TER, spread, or conversion fees compounds over decades thanks to the power of compound interest. The Q2 review is therefore a good time to go through the portfolio's total "cost profile."
What to check specifically
- TER of each fund — Are there funds in your portfolio with a TER significantly above comparable alternatives? If so, consider switching (taking the tax impact of the sale into account).
- Conversion fees — How often do you buy in a foreign currency and how much does each trade cost you in conversion?
- Broker fees — Has the fee schedule changed since you last checked? Broker pricing changes — verify current rates directly on the provider's website.
- Dividends and taxes — Do you hold distributing ETFs whose dividends you are unnecessarily being taxed on? An accumulating alternative may save you paperwork.
Rebalancing: when and how
If the allocation has deviated more than five percentage points from the target, it is time to rebalance. The cheapest way is to redirect new contributions — without selling and without tax implications. Selling is only necessary when the deviation is large and new contributions are insufficient to correct it.
Where to find cost information
A comparison of total broker costs can be found in the article how to compare broker fees in the Czech Republic. A detailed look at TER, spread, and taxes is in total investment costs.
FAQ
How often should I review my portfolio?
Once a quarter is enough. More frequent checks invite impulsive decisions. The goal of a review is to verify that allocation and costs match the plan — not to react to short-term moves.
What is the goal of the Q2 review?
To go through the portfolio's total costs: fund TERs, conversion fees, broker fees, and the dividend tax situation. You cannot influence market performance, but you can influence costs.
How do I rebalance without selling?
Redirect your regular periodic contributions to the under-weighted component. This restores the target allocation without the need to sell and without tax implications from a sale.