Menu

Updated

How often do you rebalance my portfolio?

Research has shown that rebalancing a portfolio’s holdings makes more sense when each asset class has drifted from its target allocation by a certain percentage (i.e., threshold based) rather than on a set time basis (e.g., quarterly or semiannually). Therefore, we continuously monitor your portfolio and periodically rebalance it back to your target mix, carefully taking the volatility of each asset class and your tax situation into consideration. We are not able to predict when we are likely to rebalance because it depends on the performance of each of the asset classes. We also use deposits, withdrawals and reinvestment of dividends as opportunities for interim rebalancing to minimize the taxable gains that can arise from threshold-based rebalancing.

 

 

Nothing in this blog should be construed as tax advice, a solicitation or offer, or recommendation, to buy or sell any security. Financial advisory services are only provided to investors who become Wealthfront Inc. clients pursuant to a written agreement, which investors are urged to read carefully, that is available at www.wealthfront.com. All securities involve risk and may result in some loss. For more information please visit www.wealthfront.com or see our Full Disclosure. While the data Wealthfront uses from third parties is believed to be reliable, Wealthfront does not guarantee the accuracy of the information.

Was this article helpful?