Maintaining portfolio targets through periodic rebalancing.
This scope is designed to help you build a practical understanding of Rebalancing Strategies. Lessons move from core definitions to real-world context and common failure points.
Reading in order is recommended, but each lesson stands on its own.
An in-depth explanation of automated rebalancing tools, how they operate at the portfolio level, and why they matter for building resilient, long-horizon investment portfolios. The article covers system design, risk control, tax and cost considerations, real-world contexts, and governance.
Rebalancing with new contributions is a portfolio construction technique that directs incoming cash to underweight assets, managing allocation drift while minimizing sales, taxes, and transaction costs. This article defines the concept, shows its portfolio-level mechanics, and examines its role in long-horizon capital planning with practical exampl…
Rebalancing aligns a portfolio with its policy weights, yet human psychology and organizational dynamics often disrupt that discipline. This article defines the behavioral challenges of rebalancing, shows how they surface at the portfolio level, and explains why they matter for resilient, long-horizon capital planning.
A detailed examination of frequent errors investors make when rebalancing portfolios, why these errors matter for long-term capital planning, and how they manifest in real-world contexts such as multi-asset and illiquid portfolios. The discussion focuses on risk control, costs, taxes, governance, and practical measurement issues.
An in-depth examination of the constraints that shape rebalancing strategies, why they matter for long-term portfolio resilience, and how they operate at the portfolio level in real-world settings without offering investment advice or recommendations.
