fingham

The ETF-Squared: It Reallocates For You

My experience is that one should re-allocate whenever an asset class moves out of a targeted allocation collar. That can happen any time. A collar of around 1% in either direction has worked well for me, though, as always, do your own research. Though this collar might seem narrow, I don't actually need to touch my allocations that often - every couple months or so. Also, if I add or remove funds to my portfolio, I use those opportunities to buy the most underweight (when adding funds) and sell the most overweight (when removing), whether or not the class is outside the collar. This helps keep things in line too.