Investing Specialists

Rebalancing: Whether, When, and How?

Christine Benz

Buy, hold, and rebalance is dogma among strategic asset allocators. But do investors actually follow through on the rebalancing piece?

That was the question I sought to answer by posting in the Portfolio Design/Management forum of's Discuss boards early last week. I asked readers whether or not they actually rebalance. And among the rebalancers, I wanted to know how they do it. Do they rebalance at a specific time each calendar year, or do they do so only when their portfolios' allocations get out of sync with their targets?

Christine Benz does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.