Learn how portfolio rebalancing helps manage risk and keep your investments aligned with your financial goals. In this video, Ryan O'Connell, CFA, FRM, explains key rebalancing strategies like calendar-based and percent-range methods. You'll also discover how factors like volatility, correlation, transaction costs, and risk tolerance affect rebalancing decisions. Perfect for investors who want to understand when and how to rebalance for long-term success.
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Chapters:
0:00 – What Is Portfolio Rebalancing?
0:20 – Why Rebalancing Is Countercyclical
1:12 – Calendar-Based Rebalancing Strategy
1:42 – Percent-Range Rebalancing Strategy
2:48 – Narrow vs. Wide Rebalancing Thresholds
3:47 – How Transaction Costs Impact Rebalancing
4:30 – Risk Tolerance and Its Role in Rebalancing
4:57 – Asset Correlation and Rebalancing Decisions
5:34 – How Volatility Affects Rebalancing Frequency
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.