Rebalancing bands

All-Weather Portfolio Rebalancing Bands

The All-Weather 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 1.88 points on Gold to 5 points on Long-term Treasuries, 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

Two 7.5% sleeves make this the clearest illustration of why a flat 5 point band fails: those sleeves could nearly double before a flat band noticed.

SleeveTargetBandBinding ruleRebalance outside
Total US stock market30%5 pointsabsolute25% to 35%
Long-term Treasuries40%5 pointsabsolute35% to 45%
Intermediate Treasuries15%3.75 pointsrelative11.25% to 18.75%
Gold7.5%1.88 pointsrelative5.63% to 9.38%
Broad commodities7.5%1.88 pointsrelative5.63% to 9.38%

The tightest band belongs to Gold at 1.88 points, set by the relative threshold. 3 of 5 sleeves sit below the 20 percent crossover, so the 25 percent relative threshold governs them instead of the flat 5 point band.

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 market30%37.68%overweight by 7.68%
Long-term Treasuries40%34.78%underweight by 5.22%
Intermediate Treasuries15%13.04%in band
Gold7.5%7.25%in band
Broad commodities7.5%7.25%in band

2 of 5 sleeves breach, so a 5/25 policy would trade. Returning every sleeve to target moves about 7.68% 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

All-Weather Portfolio band questions

What are the 5/25 rebalancing bands for an All-Weather 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 30% target trades outside 25% to 35%, Long-term Treasuries at a 40% target trades outside 35% to 45%, Intermediate Treasuries at a 15% target trades outside 11.25% to 18.75%, Gold at a 7.5% target trades outside 5.63% to 9.38%, Broad commodities at a 7.5% target trades outside 5.63% to 9.38%.

Which sleeve of an All-Weather Portfolio triggers first?

Gold has the tightest band at 1.88 points, governed by the relative threshold. 3 of 5 sleeves sit below the 20 percent crossover, so the relative threshold governs them rather than the flat 5 point band.

Would an All-Weather 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 7.68% and Long-term Treasuries would be underweight by 5.22%. Returning every sleeve to target moves about 7.68% 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.