Position Sizing and Portfolio Weighting | The Investment Quadrant by The Fifth Person

Questions › Category: Portfolio Management › Position Sizing and Portfolio Weighting

SW asked 3 years ago

Hi Victor,
Is position sizing the same as portfolio weighting. Are they used interchangeably? I assume this is in $ terms and periodically a rebalancing is needed and relative weightage adjusted.

1 Answers

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Victor Chng answered 3 years ago

Hi SW,

Yes position sizing and portfolio weighting is the same thing. The sizing is based on purchase cost price.