Tag: target asset allocation

How Does Etf Rebalancing Work

What is ETF rebalancing? ETF rebalancing is the process of adjusting the weightings of the securities in an ETF’s portfolio to bring them back into line with the ETF’s target asset allocation. Why is ETF rebalancing necessary? The purpose of rebalancing is to maintain the desired risk/return profile of the ETF. If the ETF’s portfolio […]