What does rebalancing a Smart Portfolio mean?
Over time, the value of individual assets in a diversified portfolio moves up and down, drifting away from their target weights.
Rebalancing is a mechanism to keep the asset allocation ratio, and maintain the Smart Portfolio’s strategy.
It does this by closing existing positions, either partially or completely, and opening new positions, either on existing assets or on new ones.
The process is automated and does not require any action from your side.
Rebalancing periods change from one Smart Portfolio to another. Visit individual Smart Portfolio pages on TBanque to find out your Smart Portfolio’s specific rebalancing frequency.