Portfolio Rebalancing: Calendar-Based vs Threshold-Based Strategies
Portfolio Rebalancing: Calendar-Based vs Threshold-Based Strategies Quick answer: Calendar-based rebalancing means you reset your portfolio to its target asset allocation on a fixed date, such as once a year. Threshold-based rebalancing means you act only when an asset class drifts past a set limit, such as 5 percentage points. Calendar is simpler. Threshold reacts better […]