Rebalancing returns your portfolio to the target percentages you set.
As prices of holdings change over time, your allocations may drift from your targets. If you feel like a Pie no longer aligns with your investing style, rebalancing is an option, and there are two ways to do it.
Rebalance in your next trade window
Navigate to your Invest tab
Select the Portfolio tab
Select the “Rebalance” button below the Pie when viewing your full portfolio
If you’re rebalancing on mobile, swipe up on the bottom of your screen to access the Rebalance button.
Keep in mind that rebalancing your portfolio will only bring your portfolio back to its target percentages by buying and selling Slices during your next trade window.
If you are looking to rebalance an Individual Pie within your portfolio, please refer to the instructions below:
Navigate to your Invest tab
Select the Portfolio tab
Select the individual Pie you are looking to rebalance
Select the “Rebalance” button below the Pie
If you’re rebalancing on mobile, swipe up on the bottom of your screen to access the Rebalance button.
Please note: Any time you rebalance, you will generally be initiating a series of buy and sell transactions. Usually, every sale of a security has tax implications which may be a gain or a loss.
Rebalance over time through dynamic rebalancing
With auto-invest on, each deposit made goes towards the underweight Slices in your Portfolio to bring those Slices closer to their target percentages. To trigger your auto-invest, each deposit made must exceed your chosen minimum cash balance by $25.
With this strategy, there are no taxable events as there are no sells in the account.
You can automate these deposits by setting up recurring deposits.
When removing cash from a portfolio, the algorithm identifies Slices that are most relatively overweight and removes money from those first.
M1 automatically rebalancing portfolio
M1 will never initiate a rebalance of your portfolio without your instruction.
If you want your holdings to match your target portfolio, you will have to initiate a rebalance manually.
Potential Tax Implications
Any time you rebalance your portfolio you may initiate buys and sales of stocks.
Sales of securities may carry tax implications which you should always consider before making the decision to rebalance.
M1 and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. It is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
Brokerage accounts on the M1 platform are either fully disclosed to APEX Clearing or cleared through M1 Finance LLC. Please look at your account statement to determine how your account is cleared.
All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future performance. Using margin can add to these risks. Users utilizing APEX cleared margin accounts should review the APEX margin account risk disclosure before borrowing. Users utilizing M1 cleared margin accounts should review the M1 margin account risk disclosure before borrowing. M1 Margin Loans are available on margin accounts with at least $2,000 invested per account. Not available for Retirement or Custodial accounts. Margin rates may vary.
Brokerage products and services are offered by M1 Finance LLC, Member FINRA / SIPC, and a wholly owned subsidiary of M1 Holdings, Inc.
20240530-3614729-11474780