How to rebalance your portfolio
Buying and selling your portfolio ingredients to match the target allocation



Investing using a VizMetrics Portfolio Recipe
This page provides instructions for how to update an investment portfolio that you have created with a VizMetrics Portfolio Recipe. If you have not yet invested using a VizMetrics Portfolio Recipe, you can find the full list of VizMetrics Portfolio Recipes at go.vizmetricsonline.com. Refer to how to choose a great portfolio and how to invest for instructions.

Below are instructions for how to update your portfolio ingredients each month to match the Portfolio Recipe's target allocation. This process is also called "rebalancing." VizMetrics Portfolio Recipes are identified with an ID starting with "s." (such as s.plus or s.brow) or "t." (such as t.aaae or t.mva3). 


Picking a brokerage account
We recommend using a brokerage account at FolioInvesting.com, which makes rebalancing much easier since they automatically calculate all the trades needed and allow you to trade with one click and with a flat annual fee.

If you prefer to buy the portfolio ingredients at another brokerage, we have also included instructions below.


How to rebalance a VizMetrics Portfolio at FolioInvesting.com

1. Log in to go.vizmetricsonline.com to get new Portfolio Recipe allocation that you will use for the upcoming month.

2. Find your Portfolio Recipe's ingredients for the upcoming month 
  • After you have logged in to go.vizmetricsonline.com, click the name of your Portfolio Recipe in the "Recipe Name" column to open the detail page.
  • Scroll down to the "How to Invest" section and find "Recipe ingredients (for FolioInvesting.com)"
    • This will show the tickers for the ETF ingredients used in this Portfolio Recipe. You will also see the percentage allocation for each ETF. 
    • Note that these tickers and numbers are formatted for input into the FolioInvesting.com order page. Here is an example format (based on t.mva3): 
             EEM,2.08,EFA,5.89,GLD,40.59,IWM,8.64,IYR,10.16,QQQ,2.79,SPY,5.61,TLT,24.24

3. Log in to your FolioInvesting.com account and place the trades.
  • Click on "Trade" next to the Folio name that you wish to rebalance
  • You should now see a page with "Trade & Manage Holdings" in the title
    • click "Trade Entire Folio" tab
    • click "Update & Exchange" tab
    • choose Rebalance
    • click "+ Add Securities"
  • You should now see a pop-up windows titled "Folio Loader - Add Securities"
    • Switch back to the portfolio detail page at go.vizmetricsonline.com. Copy the list of tickers and percentage allocations from the recipe detail page. Here is an example format:
        EEM,13.6,EFA,28.17,GLD,3.82,IWM,0,IYR,0,QQQ,20.25,SPY,19.98,TLT,14.18
    • Paste into the text box in the "Folio Loader - Add Securities" window
    • Choose "Replace my existing Folio with these securities"
      • Do not choose "Append these securities..."
    • Click [Add]
  • You should now return to the page with "Trade & Manage Holdings" in the title
    • Make sure the total of the Target % column is 100.00%
    • click [Preview Order]
  • You should now see a page with "Preview Order" in the title
    • Review order for correctness
    • click [Place Order]
  • click [Return to Accounts]
4. Wait for trade confirmations from FolioInvesting.com


How to rebalance a VizMetrics Portfolio at another brokerage

1. For the portfolio you wish to rebalance, obtain the dollar value for each ingredient in the portfolio
  • This is how much you have invested in each security in your recipe. 
  • You can obtain these dollar values by logging into your brokerage account. 
  • For example, let's say you have invested using the "s.brow" portfolio recipe and you have the following dollar amounts currently invested:
    • GLD $27,500
    • VTI $24,000
    • TLT $25,000
    • SHY $25,500
2. Calculate the total portfolio value for your current allocation
  • Sum the portfolio total holdings to get the total dollar amount invested in the portfolio. 
    • $27,500 + $24,000 + $25,000 + $25,500 = $102,000
3. Log in to go.vizmetricsonline.com to get your Portfolio Recipe's ingredients for the upcoming month
  • After you have logged in to go.vizmetricsonline.com, click the name of your Portfolio Recipe in the "Recipe Name" column to open the detail page.
  • Scroll down to the "How to Invest" section and find "Recipe ingredients"
    • This will show the tickers for the exchange-traded funds (ETFs) which are the ingredients for this Portfolio Recipe. You will also see the percentage allocation for each ETF. 
    • For example, the target allocation for s.brow is as follows:
      GLD=25%,VTI=25%,TLT=25%,SHY=25%
  • This list of tickers and percentages is also sometimes referred to as "target weights" or "target percentages" or "target asset allocation."

4. Multiply each ingredient's target percentage by the current total portfolio value. For example,
  • GLD  25% * $102,000 = $25,500
  • VTI  25% * $102,000 = $25,500
  • TLT  25% * $102,000 = $25,500
  • SHY  25% * $102,000 = $25,500
5. Calculate the difference in dollars for each holding, as compared to the target weight
Subtract your current holdings from the target amount to ....

     Target  - Current = Change needed
GLD  $25,500 - $27,500 = -$2,000
VTI
  $25,500 - $24,500 = +$1,000
TLT  $25,500 - $25,000 = +$500
SHY  $25,500 - $25,500 = 0

6. Get a recent share price for each holding. For example, 

GLD  $106.50 per share
VTI
  $103.20 per share
TLT  $119.67 per share
SHY  $84.72 per share

7. Calculate how many shares you need to buy or sell in order to get to the target amount in each holding. Note that when "Change needed" is negative, you will sell shares and when "Change needed" is positive you will buy shares. For example:
  • For GLD: Change needed is -$2,000 and the price is $106.50 per share, so we need to SELL 18.779 shares (which is -$2,000 divided by $106.50)
  • For VTI: Change needed is +$1,000 and the price is $103.20 per share, so we need to BUY 9.69 shares (which is +$1,000 divided by $103.20)
  • For TLT: Change needed is +$500 and the price is $119.67 per share, so we need to BUY 4.18 shares (which is +$500 divided by $119.67)
  • For SHY: Change needed is $0 so we do not need to buy or sell SHY.
Note that some brokers may not allow buying and selling fractional shares. In this case, round to the nearest whole share.

8. Rind the minimum number of trades (buys and sells) to get to the target number of shares in each holding

9. make trade list

10. enter trades at your brokerage

11. wait for trade confirmations