When Do Etfs Rebalance

What is ETF rebalancing?

Rebalancing is the process of realigning the weightings of a portfolio of assets. Rebalancing involves periodically buying or selling assets in a portfolio to maintain an original or desired level of asset allocation or risk. For example, say an original target asset allocation was 50% stocks and 50% bonds.

Do ETFs get rebalanced?

Unfortunately for the 56% of US-listed ETFs passively tracking indices or employing “sunshine trading”, their methodologies mean they have sluggish rebalance processes, leaving them vulnerable to higher transaction costs and frontrunning by opportunists.