What is rebalancing and does how it work?
It is expected that each portfolio’s actual asset allocation will vary from its initial asset allocation due to normal price variations in the stock market. This can affect portfolio performance and impact the target risk and asset class allocations of your portfolio. Honest Dollar has an automatic feature to help keep your portfolio on track for your target allocation:
If your account allocation is outside of certain parameters, we will periodically perform an account rebalance in order to bring your portfolio back in line with your target allocation by trading the ETFs in your portfolio. The maintenance of your account helps maintain the target allocation for your portfolio. No additional fees for trading will be assessed to you for rebalancing transactions