How Often Should You Rebalance Your Portfolio?

Rebalancing may help keep your portfolio aligned with your goals, but how often should you actually do it? In Episode 22 of Greenstream, we break down the research behind rebalancing, why drift matters, and how to use cashflows to rebalance with the least friction and cost. You’ll learn about the:

• Why rebalancing works and what the evidence shows about managing portfolio drift
• The tradeoffs between calendar schedules, tolerance-band triggers, and using cashflows to stay aligned with your target mix in an effort to minimize taxes and friction
• Why a disciplined, rules-based process could help you stay invested during volatile markets

 

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Meet with Pat & Marcus: https://outlook.office365.com/book/MarcusCalendaratGreenspringAdvisors@Greenspringos33.onmicrosoft.com

 

Sources

¹ Opportunistic Rebalancing: A New Paradigm for Wealth Managers (Daryanani, 2008)

² Rebalancing and Returns (Dimensional, 2008)

³ Hong, Xing, Portfolio Rebalancing: Tradeoffs and Decisions (2021): https://ssrn.com/abstract=3858951

⁴ Are Advisors Worth Their Fee | Greenstream 13 (2025)

 

Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.