MIMIC:
ETFs rely on broad diversification to limit volatility and justify fees.
An alternative is to invest in a concentrated baskets of stocks that Mimics an ETF’s performance and volatility without the fees.
Pro
•Direct stock ownership
•Ability to adjust stocks sizing
•Active rebalancing keeps you inline with the current market, not the market from a year ago
Con
•Concentrated positions can increase stock specific risk
•Requires active rebalancing