Restore your portfolio to your preferred target percentages by rebalancing your M1 Invest account. This article explains how to rebalance, what to expect during the process, and helpful troubleshooting tips. M1 never rebalances your portfolio automatically without your instructions.
What Is rebalancing?
Rebalancing adjusts your portfolio back to the asset allocation you originally set in your Pie. As market prices change, your individual Slices may drift from their target percentages. Rebalancing helps keep your investment approach consistent over time.
How rebalancing works on M1
When you rebalance in M1, the platform:
Compares your actual allocation to your Pie’s target percentages.
Sells shares of Slices (stocks/ETFs) that are overweight.
Uses proceeds to buy Slices that are underweight.
Ensures your new allocations match your preferred targets after the next trade window.
Rebalancing example
Before rebalancing:
Target: Stock A 40%, Stock B 40%, Stock C 20%
Actual: Stock A 50%, Stock B 30%, Stock C 20%
After rebalancing:
Allocation returns to:
Stock A 40%, Stock B 40%, Stock C 20%
Note: All buy/sell actions take place during your next scheduled trading window.
How to rebalance your entire portfolio
Web
Log in to your M1 account.
Click the Invest tab.
Go to your Portfolio.
Click the Rebalance button below your Pie.
Review the confirmation window, then confirm your choice.
Note: If your portfolio consists of a single Pie, you will need to select that Pie prior to initiating the rebalance.
Mobile App (iOS & Android)
Open the M1 app.
Tap the Invest tab.
Go to the Portfolio tab.
Swipe up at the bottom of your screen to reveal and tap the Rebalance button.
Confirm the rebalance action when prompted.
Note: If your portfolio consists of a single Pie, you will need to select that Pie prior to initiating the rebalance.
How to rebalance a single Pie
If you want to rebalance an individual Pie within your portfolio:
Go to the Invest tab.
Tap Portfolio.
Select the specific Pie you want to rebalance.
Tap the Rebalance button below that Pie.
Confirm your action.
Dynamic Rebalancing with Auto-invest
Instead of manual rebalancing, you can use deposits to gradually move your portfolio closer to your targets.
Auto-invest directs each deposit toward underweight Slices.
Only deposits exceeding your set “minimum cash” by at least $25 will trigger Auto-invest.
With this approach, only buys occur—no sales, so no taxable events.
Withdrawals remove funds first from overweight Slices.
Set up recurring deposits for automated rebalancing over time.
Learn more about creating or editing recurring transfers.
Potential tax implications
Any time you rebalance your portfolio, both buys and sells may occur. 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.
This content was generated using artificial intelligence and is intended for informational and educational purposes only. While reasonable efforts are made to ensure accuracy, AI-generated outputs may omit key context; and should not be construed as financial, investment, legal, or tax advice. Users should independently verify all information and consult a qualified professional before making any financial decisions.
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