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What is Dynamic Rebalancing?

M1 intelligently allocates money from every deposit to ensure your portfolio stays on track. That means you can invest cash into your Pie and maintain your investment targets without any manual calculations. 

 

With M1's Dynamic Rebalancing, every trade with new cash in your portfolio pushes you closer to the target percentages you set. Whenever your account makes new trades, the algorithm identifies slices that are most relatively underweight and puts money in those first.

You can see Dynamic Rebalancing in action! Note that a $500 deposit realigns this portfolio with its targets:

AutomaticRebalance_Deposit-2.gif

When removing cash from a portfolio, the algorithm identifies slices that are most relatively overweight and removes money from those first. 

See it in action! Note that this portfolio has moved away from it's targets over time, but that a $500 withdrawal first causes the most overweight slices to sell and bring the entire portfolio back towards its targets:

AutomaticRebalance_Withdraw-2.gif

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