The bands for this allocation
Five 10% equity sleeves and a 10% REIT against a 40% bond position. Every 10% sleeve is governed by the relative band, so this allocation signals early and often.
| Sleeve | Target | Band | Binding rule | Rebalance outside |
|---|---|---|---|---|
| Large cap blend | 10% | 2.5 points | relative | 7.5% to 12.5% |
| Large cap value | 10% | 2.5 points | relative | 7.5% to 12.5% |
| Small cap blend | 10% | 2.5 points | relative | 7.5% to 12.5% |
| Small cap value | 10% | 2.5 points | relative | 7.5% to 12.5% |
| Total international stock | 10% | 2.5 points | relative | 7.5% to 12.5% |
| REIT index | 10% | 2.5 points | relative | 7.5% to 12.5% |
| Total bond market | 40% | 5 points | absolute | 35% to 45% |
The tightest band belongs to Large cap blend at 2.5 points, set by the relative threshold. 6 of 7 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.
| Sleeve | Target | After the move | Status |
|---|---|---|---|
| Large cap blend | 10% | 11.71% | in band |
| Large cap value | 10% | 11.71% | in band |
| Small cap blend | 10% | 11.71% | in band |
| Small cap value | 10% | 11.71% | in band |
| Total international stock | 10% | 11.71% | in band |
| REIT index | 10% | 9.01% | in band |
| Total bond market | 40% | 32.43% | underweight by 7.57% |
1 of 7 sleeves breach, so a 5/25 policy would trade. Returning every sleeve to target moves about 8.56% 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 calculatorCoffeehouse Portfolio band questions
What are the 5/25 rebalancing bands for a Coffeehouse Portfolio?
Each sleeve gets the tighter of a 5 percentage point band and a band worth 25 percent of its own target. Large cap blend at a 10% target trades outside 7.5% to 12.5%, Large cap value at a 10% target trades outside 7.5% to 12.5%, Small cap blend at a 10% target trades outside 7.5% to 12.5%, Small cap value at a 10% target trades outside 7.5% to 12.5%, Total international stock at a 10% target trades outside 7.5% to 12.5%, REIT index at a 10% target trades outside 7.5% to 12.5%, Total bond market at a 40% target trades outside 35% to 45%.
Which sleeve of a Coffeehouse Portfolio triggers first?
Large cap blend has the tightest band at 2.5 points, governed by the relative threshold. 6 of 7 sleeves sit below the 20 percent crossover, so the relative threshold governs them rather than the flat 5 point band.
Would a Coffeehouse 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 bond market would be underweight by 7.57%. Returning every sleeve to target moves about 8.56% 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.