Why a portfolio drifts from its target
Market performance can gradually shift your portfolio away from its intended allocation. A strong run in stocks, for example, can leave you taking on more risk than you originally intended.
This calculator shows how far each asset class has moved from your target allocation, whether the difference is large enough to consider rebalancing, and the exact amount each asset class is above or below its target.
You didn't enter a total portfolio value, so we couldn't check that everything is accounted for.
Each asset class with its target, actual share, drift, drift limit, and how far it sits from its target in dollars
| Class |
Target |
Actual |
Drift |
Drift limit |
Difference from target |
The drift limit is the amount an asset class can move from its target before it may warrant a closer look. The default is five percentage points or 25% of the asset class’s target allocation, whichever is smaller. For example, an asset class with a 15% target has a drift limit of 3.75 percentage points.
Using a percentage of the target gives smaller allocations appropriately tighter limits. A five-point change in an 8% allocation is much more significant than the same change in a 55% allocation. The drift limit helps distinguish normal portfolio movement from changes that may merit attention.
These figures are informational, not recommendations. Rebalancing in a taxable account may generate capital gains or losses, while trades within an IRA or Roth IRA generally do not create current capital-gains taxes. This calculator does not know which investments are held in which accounts. Consider the tax consequences and consult a financial professional before making changes.