When Does a Portfolios New Allocation Start Calculating?
It is completely normal to see a temporary mismatch between your portfolio's Current Weights and Target Weights the day after you update a dynamic model. Portfolio data, including current weights, is calculated and locked in as of the market close each day.
When you make a change, the system requires two full business days to completely roll over the data. Here is exactly what happens step-by-step:
- Day 1: You update your holdings and target weights. The system assumes these updates and trades happen after the market closes for the day.
- Day 2: Because Day 2's data is calculated based on how the market closed on Day 1, your current weights will still reflect your old portfolio. You will see your new target weights listed, but the current weights will not match them yet.
- Day 3: This is the first day the new securities and weights are fully factored into the data. Your current weights and target weights will now be aligned.
Note: Even after the update fully processes, your current and target weights might still differ This is normal! Current weights are based on how each individual security performs relative to the rest of the market. Switch the Rebalance Frequency to Daily if you want current and target weights to always match.