Rebalancing bands

50/50 Portfolio Rebalancing Bands

The 50/50 Portfolio rebalancing bands under the 5/25 rule are the ranges each sleeve must stay inside before a threshold policy triggers a trade. For this allocation the bands run from 5 points on Total US stock market to 5 points on Total bond market, because the rule applies whichever is tighter of a 5 percentage point absolute threshold and 25 percent of each holding's own target weight.

Computed with the same engine as the free calculator. Educational analysis, not investment advice.

The bands for this allocation

An even split between growth and stability. Both sleeves carry the full 5 point absolute band.

SleeveTargetBandBinding ruleRebalance outside
Total US stock market50%5 pointsabsolute45% to 55%
Total bond market50%5 pointsabsolute45% to 55%

The tightest band belongs to Total US stock market at 5 points, set by the absolute threshold. Every sleeve sits at or above the 20 percent crossover, so the flat 5 point band governs all of them.

What happens after a strong equity year

Holding the allocation untouched through a stylized year with equities up 30%, bonds down 10%, and real assets flat produces these weights. Nothing was bought or sold; the drift is purely market movement.

SleeveTargetAfter the moveStatus
Total US stock market50%59.09%overweight by 9.09%
Total bond market50%40.91%underweight by 9.09%

2 of 2 sleeves breach, so a 5/25 policy would trade. Returning every sleeve to target moves about 9.09% of the portfolio.

A breach is not a recommendation: it means an allocation left the range you chose. Transaction costs, spreads, capital gains, wash-sale rules, and new contributions all affect whether acting is worthwhile. These figures are illustrative and use reference weights, not your holdings.

Run your own weights

These are reference targets. Enter what you actually hold to see your own bands, which threshold governs each sleeve, and how much would have to trade.

Open the rebalancing band calculator

50/50 Portfolio band questions

What are the 5/25 rebalancing bands for a 50/50 Portfolio?

Each sleeve gets the tighter of a 5 percentage point band and a band worth 25 percent of its own target. Total US stock market at a 50% target trades outside 45% to 55%, Total bond market at a 50% target trades outside 45% to 55%.

Which sleeve of a 50/50 Portfolio triggers first?

Total US stock market has the tightest band at 5 points, governed by the absolute threshold. Every sleeve sits at or above the 20 percent crossover, so the flat 5 point band governs all of them.

Would a 50/50 Portfolio need rebalancing after a stylized year with equities up 30%, bonds down 10%, and real assets flat?

Yes. After a stylized year with equities up 30%, bonds down 10%, and real assets flat, Total US stock market would be overweight by 9.09% and Total bond market would be underweight by 9.09%. Returning every sleeve to target moves about 9.09% of the portfolio.

Bands for other allocations

Drift is one dimension. Check portfolio concentration for what sits inside the sleeves, ETF overlap for funds holding the same companies, and the portfolio risk monitor for tracking all three across connected accounts.