What To Expect When You're Rebalancing

by: Vanguard

Summary

The primary goal of rebalancing should be to minimize risk, not maximize returns.

Three common strategies: time-only, threshold-only, and time-and-threshold.

Effective techniques for implementing those strategies.

Rebalancing client portfolios requires a delicate balance. It can provide risk control, but rebalancing too often could incur needless costs. This research paper evaluates the benefits and challenges of rebalancing and offers rebalancing strategies and best practices.

Use this paper to:

  • Explore the benefits of rebalancing and the potential challenges of discussing rebalancing with clients.
  • Evaluate the basics of three common rebalancing strategies: time-only, threshold-only, and time-and-threshold.
  • Discover techniques for implementing a rebalancing strategy.

What to expect when you're rebalancing