05 · Execution economics
Sell. Buy.
Charge both.
Σ |Δ weight|
Cost equals the tariff multiplied by every absolute position change. A 10% rotation is 10% sold plus 10% bought: 20% gross traded.
Exact 10-year ledger
No shortcut turnover
definition.
Change AUM and tariff, compare operating policies, inspect annual rollups and open the largest individual trade events.
THE EXACT CONVENTION
No ticket-count penalty · proportional to notionalA rotation has two charged legs
SELL FROM ETF A10% × 10 bp
+
BUY ETF B10% × 10 bp
=
TOTAL COST2.0 bp NAV
SELL + BUY$2,000
Example: rotating $1,000,000 from one ETF to another creates $2,000,000 of gross traded notional. It costs $2,000 at 10 bp or $4,000 at 20 bp.
10-YEAR OPERATING COST
Ongoing only · deployment and liquidation shown separatelyAggressive · current vs proposed
Current quarterly gross / yr23.06%buys + sells
Proposed annual gross / yr11.98%48% less trading
Current annual cost2.31 bp$2,306 at selected AUM
Proposed annual cost1.20 bp$1,198 at selected AUM
The proposed annual + lagged Theme Governor path cuts gross trading by 48.0%, but the dollar saving is modest under proportional pricing. Fewer ETFs and fewer dates mainly improve operations and explainability; they do not magically remove cost if the same notional is moved.
Annual audit
Every modeled trade year.
Bar length is gross notional bought + sold. The tariff changes the cost, not the underlying trade size.
LARGEST EVENTS
Top 20 by gross traded · 40 events on this pathPer-trade two-leg ledger
| Trade date / reason | Sold | Bought | Gross traded | Cost | ETF sides | Lag |
|---|---|---|---|---|---|---|
| 2026-06-30 · scheduled full rebalance | 9.89% | 9.89% | 19.79% | 1.98 bp | 15 | 0d |
| 2018-06-29 · scheduled full rebalance | 6.01% | 6.01% | 12.03% | 1.20 bp | 15 | 0d |
| 2020-03-31 · scheduled full rebalance | 5.59% | 5.59% | 11.18% | 1.12 bp | 15 | 0d |
| 2022-06-30 · scheduled full rebalance | 5.56% | 5.56% | 11.13% | 1.11 bp | 15 | 0d |
| 2023-03-31 · scheduled full rebalance | 4.50% | 4.50% | 8.99% | 0.90 bp | 15 | 0d |
| 2022-03-31 · scheduled full rebalance | 4.26% | 4.26% | 8.52% | 0.85 bp | 15 | 0d |
| 2025-06-30 · scheduled full rebalance | 4.21% | 4.21% | 8.42% | 0.84 bp | 15 | 0d |
| 2020-06-30 · scheduled full rebalance | 4.14% | 4.14% | 8.27% | 0.83 bp | 15 | 0d |
| 2023-12-29 · scheduled full rebalance | 4.03% | 4.03% | 8.05% | 0.81 bp | 15 | 0d |
| 2020-12-31 · scheduled full rebalance | 3.74% | 3.74% | 7.48% | 0.75 bp | 15 | 0d |
| 2026-03-31 · scheduled full rebalance | 3.61% | 3.61% | 7.22% | 0.72 bp | 15 | 0d |
| 2022-12-30 · scheduled full rebalance | 3.33% | 3.33% | 6.66% | 0.67 bp | 15 | 0d |
| 2018-12-31 · scheduled full rebalance | 3.31% | 3.31% | 6.62% | 0.66 bp | 15 | 0d |
| 2024-09-30 · scheduled full rebalance | 3.29% | 3.29% | 6.58% | 0.66 bp | 15 | 0d |
| 2025-03-31 · scheduled full rebalance | 2.96% | 2.96% | 5.92% | 0.59 bp | 15 | 0d |
| 2019-03-29 · scheduled full rebalance | 2.62% | 2.62% | 5.24% | 0.52 bp | 15 | 0d |
| 2023-06-30 · scheduled full rebalance | 2.58% | 2.58% | 5.15% | 0.52 bp | 15 | 0d |
| 2021-03-31 · scheduled full rebalance | 2.45% | 2.45% | 4.89% | 0.49 bp | 15 | 0d |
| 2017-03-31 · scheduled full rebalance | 2.43% | 2.43% | 4.86% | 0.49 bp | 14 | 0d |
| 2020-09-30 · scheduled full rebalance | 2.38% | 2.38% | 4.76% | 0.48 bp | 15 | 0d |
BOUNDARIES
Shown separately to avoid hiding themCosts that do not belong in the ongoing comparison
Deploy external cash10 bp100% buys · no ETF sale
Final liquidation10 bp100% sells · no ETF purchase
Current → proposed migration9.8 bp98% gross traded
Migration dollars$9,800at selected AUM
Migration details: SOXX:-3.0000%; SCHD:-8.0000%; INFL:-8.0000%; KSTR:-3.0000%; BUG:-4.0000%; QQQ:+28.0000%; DGRW:+13.0000%; XLK:-10.0000%; GRID:-8.0000%; IFRA:-5.0000%; HGER:+8.0000%