Rebalance is the process of changing the weights of assets like stocks or bonds in a portfolio by trading. Portfolios, indexes and benchmarks are all rebalanced. Some common benchmarks are rebalanced according to a set quarterly or annual schedule. Active portfolio managers may rebalance their portfolios as frequently as quarterly, monthly, weekly, daily or even hourly, depending on the desired portfolio turnover.
Synonyms: trade, re-weight, re-allocate
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Guy: A survey showed a change in fund
frequency after the financial crisis.
Eve: Yeah, I remember. That's when risk and compliance officers became office rock stars.
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