How Does Rebalancing Work in a Portfolio?
Rebalancing will return the portfolio weights to the target weights determined when creating the portfolio. It will rebalance on the last day of the period selected, for example if Quarterly is selected, it will return the current weights to the target weights on the last day of the quarter.
There are five rebalance frequency options: Never, Annually, Quarterly, Monthly, and Daily. If you use Daily the current weights will have minimal drift from the target weights. If you use Never, current weights will be based solely on how each holding performs relative to the other holdings. This will cause the most drift between target and current weights.
Rebalancing is available for both Static and Dynamic portfolios.
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