The Rebalancing Act

1 CE Credit | 50-Minute Video

In this session, Dimensional’s Kaitlin Hendrix explores how portfolio rebalancing decisions can affect asset allocations, risk exposure, and implementation outcomes over time. Using historical data and real-life examples, she reviews calendar-based, tolerance-band, and tiered rebalancing approaches within diversified portfolios.

Participants will learn how rebalancing frequency and structure influence turnover, tracking error, taxes, and market impact. Participants will also learn how to apply these concepts as part of an investment planning process aligned with the goals of their clients.

Learning Objectives

1. Learn the key differences between calendar-based, tolerance-band, and tiered rebalancing approaches and their role within an investment planning framework.

2. Evaluate how rebalancing frequency and structure affect portfolio risk, turnover, tracking error, and implementation costs.

3. Understand how one’s asset allocation may impact rebalancing choices. 

To earn a credit, review the video/materials and take the exam by clicking below.