How does rebalancing work?

Easy rebalancing is a free service for all Sarwa clients. We help you maintain your portfolio balanced when the market causes your investments to drift from their target.

Over time, as the value of individual ETFs in a diversified portfolio deviates from their target allocation, our technology ensures that your portfolio weights are rebalanced in response to price changes.

The difference between the target weights for your portfolio and the actual weights in your current portfolio is what we call drift. The issue with a high drift is that it reduces the efficiency with your portfolio and exposes you to more/less risk than your target portfolio allocation we set out in the plan.

This service is automatic and no action is required from your end. 

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