7. Rebalance your portfolio regularly
One of the nice things about MarketRiders portfolios is that once you set up your portfolio and allocate percentages to various markets, you can sit back and let the markets perform pretty much on automatic. Still, markets do ebb and flow over time, and your allocations will shift from target percentages.
To increase your returns, you'll want to rebalance it regularly. Basically, it means taking the counter intuitive action of selling shares of markets that are performing well and buying more shares of ones that have been lagging. MarketRiders' portfolio engine makes rebalancing incredibly easy, showing you what to buy and sell to realign with your target percentages. You can also add capital to your portfolio at any time and let the portfolio engine show you the recommended allocations.
Suppose you started with a portfolio comprised of 50% US stock market ETFs and 50% in bond ETFs. After a year, US stocks were 55% and bonds were 45%. To rebalance, you would sell shares of your US ETFs and buy more bond ETFs to get them both back to 50%.
We recommend rebalancing quarterly or more, depending upon how much the market is moving around. Rebalancing only takes 15 minutes on MarketRiders. We will email you periodically with a breakdown of your performance and recommendations for rebalancing your portfolio.
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What The Experts Say
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