Rebalancing: Adding Value to Passive Management

RELATED CONTENT

The Secret to Managing Passive Portfolios

The active vs. passive debate takes place on two levels: the investments you select and your management style. Our study reveals that a little active management of a passively constructed portfolio is a good thing.

Rebalancing and Diversifying: The Easy Way to Generate Alpha

Your clients expect more than average returns. That's why they hired you, after all. Help them achieve some of their expectations with a simple diversification and rebalancing strategy that has proven itself over the long run.

The Bonus in Rebalancing Clients' Portfolios

William Bernstein derives a formula for calculating the "rebalancing bonus" for assets with high volatility and a low correlation to the rest of the portfolio. Part 1 of a three-part series.

Asset Location: How Important Is It?

While some maintain that bonds must go into tax-deferred accounts and stocks into taxable ones, others argue that since asset classes are fungible and future tax rates unknowable, it doesn't really matter. Discount the entire portfolio, of course, but don't bother rearranging chairs on the Titanic.