You open your brokerage app and something looks off. The U.S. market ETF you bought a few years ago has quietly grown into more than half your portfolio. The bond ETF you added for safety barely shows up anymore. That emerging markets fund you were so excited about is now a rounding error.
You did not decide any of this. The market decided it for you.
So now you are stuck on the question every investor eventually runs into. Should you rebalance? And if so, when?
Here is the good news. Rebalancing is far less complicated than the internet makes it sound. There is no secret schedule, no perfect date, no formula you are failing to discover. There are really only three things worth thinking about.
1. Timing: How often should you actually rebalance?
Most investors assume the answer is a calendar; monthly if you are diligent, quarterly if you
…
