Automatic Rebalancing

Automatic Rebalancing

A strategy in which gaining investments in a portfolio are sold and the profits reinvested in an out-of-favor industry or stock. Because the out-of-favor stocks are not followed closely, they may be undervalued. Automatic rebalancing may therefore result in higher gains at the same level of risk.
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An automatic rebalancing strategy constantly adjusts the asset allocation of the fund based on the overall market valuation.
On a day-to-day basis, the portfolios will be managed by the bank's tech partner SigFig, which creates algorithms to do automatic rebalancing and tax-loss harvesting.
To keep fees lower, robos rely mostly on passive investment instruments such as ETFs and index funds, typically charging a few more basis points for services like automatic rebalancing and tax loss harvesting.
4 million accounts, Principal Financial Group found that just 2% of participants making their own investment choices made use of an automatic rebalancing tool.
Automatic rebalancing: Automatic rebalancing of the portfolio is essential to maintain the asset allocation at predefined levels.
The variable annuity's immediate attraction--at least for me, in the 1970s--was automatic rebalancing.
But with their automatic rebalancing in March 2009-the bottom of the market--they rebalanced back into equities and made substantial gains on the way back up.
Enables 100% uptime through automatic rebalancing and fault-tolerance, which ensure that there is no degradation to performance or availability.
Additionally, automatic contribution escalation is now offered by 47 percent of plans (up from 17 percent in 2006) and automatic rebalancing is offered by 49 percent of plans (up from 27 percent in 2006).
Automatic Rebalancing and Highest daily NAV Guarantee are the key customer friendly differentiators of Smart Performer
The former focus on automatic rebalancing to more conservative allocations as the specified retirement date draws near, while the later seek to align with the investor's risk tolerance (conservative, aggressive, etc.
In October 2014, the firm launched Betterment Institutional, in partnership with Fidelity, as a self-branded platform for financial advisors, providing advisors with a dashboard to view and manage client assets as well as custom reports, automatic rebalancing and tax harvesting.
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