Skip to Content
Investing Specialists

For Best Rebalancing Results, Get Out Your Scalpel

Morningstar's X-Ray Details tool can help you fine-tune your buying and selling.

Mentioned: , , , ,

Rebalancing--the counterintuitive practice of scaling back your portfolio's winners and adding to its losers--is an important aspect of portfolio hygiene. The process won't necessarily enhance your portfolio's return, but over time it will tend to reduce its volatility level.

You often hear rebalancing discussed around year-end, as some investors sensibly tie in rebalancing with their year-end tax-related maneuvers. Retirees might unload highly appreciated winners to meet their required minimum distributions from their tax-deferred accounts, for example. Other investors might find tax losses to help offset winning positions that they’re selling from their taxable portfolios. 

Christine Benz has a position in the following securities mentioned above: VPCCX. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.