40% EDV & 60% TLT Rebalance

[modeljc]

I think Medium Tex and Pointedstick hold EDV in some percentage to TLT.  My question is how do you rebalance and what is your band?  Do you rebalance each one or do you let the total tell you when to rebalance?  I am thinking of putting EDV in the PP.  Any help would be appreciated.  Anybody do some back testing?

[dualstow]

I think EDV is usually recommended as a supplement to PRPFX, which is light on long-term treasury bonds.

I do hold some EDV in addition to the 30-year bonds and TLT. In theory, I want the total to tell me when to rebalance. 35% in bonds.
In practice, I did choke (around the time they were rioting in Birmingham, UK, I think) and sell some EDV prematurely, eventually putting the money back into directly held treasurys.

[AgAuMoney]

I hold about 1/3 EDV to 2/3 TLT.

It seems to stay reasonably close to my 1:2 ratio without paying much if any extra attention except when the entire category needs attention.

In practice I don't do any rebalance between the two (where I take away from one and add to the other).  If I need to add to my treasury allocation I add to the low one, or to both if the higher one needs enough to be worth the additional transaction.  Similarly when taking away from treasuries I take first from the high one, and also from the lower one if what I would take is enough to justify it.

I also have been known to judiciously turn on or off the dividend reinvestment to add to a low or to avoid adding to a high.

[steve]

I think Medium Tex and Pointedstick hold EDV in some percentage to TLT.  My question is how do you rebalance and what is your band?  Do you rebalance each one or do you let the total tell you when to rebalance?  I am thinking of putting EDV in the PP.  Any help would be appreciated.  Anybody do some back testing?

I would just use the 35/15 band and just even it out to your desired allocation at that time. I use approximately 1/3 EDV 1/3 VGLT and 1/3 TLT . My EDV/VGLT is in a taxable account and will be the first place I will make adjustments when I have to re balance.

[Pointedstick]

I don't rebalance between EDV and TLT. I hold them in different accounts according to what I can get commission-free.