Investing term

What is Rebalance?

Selling some of what's grown most and buying more of what's grown least to return the portfolio to its target weights.

To rebalance is to sell some of what has grown most and buy more of what has lagged, returning your portfolio to its target mix. It feels counterintuitive — trimming winners, topping up losers — but it's a disciplined way to systematically sell high and buy low while keeping your risk level where you intended. It enforces buy-low-sell-high without prediction.