Automatic ETF Portfolio Rebalancing
Maintain your target asset allocation in ETFs without drift. Get alerts when positions exceed thresholds
Benefits
Drift notifications
Automatic alerts when your ETF allocations exceed your set threshold (default 5%)
Rebalancing plan
Automatically calculates exact amounts to invest in each ETF to restore target allocation
Tax optimization
Optimize transaction order to minimize realized capital gains in passive portfolios
How it works
1. Set target allocation
Define your desired percentage in each ETF (e.g., 60% MSCI World, 40% MSCI Europe)
2. Continuous monitoring
Index Balance daily checks if your positions drift from your target allocation
3. Receive alerts and plan
When threshold is reached, get detailed rebalancing plan with specific buy/sell orders per broker
Frequently asked questions
How often should I rebalance?
For passive strategies, rebalance annually or when drift exceeds 5%. This minimizes costs and tax impact
What rebalancing threshold should I use?
Small portfolios (<5k€): 10%. Large portfolios (>50k€): 3-5%. Balance between efficiency and transaction costs
How does rebalancing affect taxes?
Rebalancing crystallizes gains. Plan in December or use losses to offset in tax-efficient years
Can I rebalance manually?
Yes, you can ignore alerts. Index Balance also calculates plans on your preferred schedule
Does it work with periodic contributions?
Yes, the system detects if contributions maintain balance and suggests adjustments when needed