Source: https://wealthfolio.app/docs/guide/allocation-targets/

# Allocation Targets & Rebalancing

Define a target portfolio, see how far each holding has drifted, and generate a concrete buy/sell rebalance plan.

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Last updated September 10, 2026

Allocation Targets, introduced in **3.5**, lets you define the portfolio you _want_, see how far your actual holdings have **drifted** from it, and generate a **rebalance plan** that tells you exactly what to buy or sell.

![Allocation targets overview: current vs. target with drift](https://assets.wealthfolio.app/images/screenshots/allocation/overview.png) ![Allocation targets overview: current vs. target with drift](https://assets.wealthfolio.app/images/screenshots/allocation/overview-dark.png)

Allocation targets overview: current vs. target with drift

The feature has three parts: an **Overview** of your current versus target allocation, a **Targets** editor, and a **Rebalance** planner.

## Setting targets

In the **Targets** editor, create a target by choosing an allocation type, a starting point, and the weights you want.

### Allocation type

Target by any of these taxonomies:

-   **Asset Classes** (e.g. stocks / bonds / commodities)
-   **Industries** (GICS sectors)
-   **Risk Category** (Low / Medium / High)
-   **Regions** (continents / geographies)
-   **Custom Groups**

### Starting point

Begin from a **preset** model or build your own. Built-in presets include, among others:

| Taxonomy | Example presets |
| --- | --- |
| Asset Classes | Balanced 60/40, Growth 80/20, All Weather, Permanent Portfolio |
| Industries | S&P 500 weights, Equal Weight, Defensive Equity |
| Risk Category | Conservative, Balanced, Aggressive |
| Regions | Global Cap, International Proxy, Equal Weight |

You can also start from your **current holdings** and adjust from there. Target weights must total **100 %**.

### Scope

A target applies to a scope: **all accounts**, a **custom portfolio**, or a **single account**.

![Target editor with the preset picker and weight sliders](https://assets.wealthfolio.app/images/screenshots/allocation/model.png) ![Target editor with the preset picker and weight sliders](https://assets.wealthfolio.app/images/screenshots/allocation/model-dark.png)

Target editor with the preset picker and weight sliders

## Reading drift

The **Overview** shows how far you’ve strayed from your target.

-   **Drift** is your current allocation minus your target, in percentage points.
-   Each category is **Overweight**, **Underweight**, **In band**, or **Not targeted**.
-   The **tolerance band** (a slider, roughly 0.5 %–10 %, default 5 %) defines how much drift is acceptable. Categories inside the band need no action; categories outside it are flagged.
-   The **largest gaps** card surfaces the most out-of-band categories first, and a holdings table shows current %, target %, and drift per holding.

![Drift drivers card highlighting the largest out-of-band gaps](https://assets.wealthfolio.app/images/screenshots/allocation/drift.png) ![Drift drivers card highlighting the largest out-of-band gaps](https://assets.wealthfolio.app/images/screenshots/allocation/drift-dark.png)

Drift drivers card highlighting the largest out-of-band gaps

## Building a rebalance plan

The **Rebalance** planner turns drift into a concrete list of trades. Choose a strategy and a few constraints, then calculate.

### Strategy

| Mode | What it does |
| --- | --- |
| **Cash-flow only** | Deploys new cash into underweight categories. Buys only, no sells. |
| **Sell to rebalance** | Sells overweight positions and uses the proceeds to buy underweight ones. |
| **Hybrid** | Invests new cash first, then sells overweight only if cash alone can’t close the gaps. |

### Constraints

-   **Goal**: stop at the **nearest band** (pragmatic) or push to the **exact target** (precise).
-   **Share sizing**: allow **fractional shares** for precision, or **whole shares only** (which may leave a little drift).
-   **Minimum trade size**: exclude trades smaller than an amount you set.

### The plan

Wealthfolio suggests trades using a drift-priority optimizer. Each step buys or sells the share that reduces total drift the most per dollar. Each suggested trade shows the action (**BUY** / **SELL**), symbol, category, amount, share quantity, last price, and the reason. The summary reports the number of trades, cash deployed and remaining, and **max drift before → after**, with a per-category _before · target · after_ bar.

Wealthfolio flags warnings when it’s missing a quote, can’t classify a holding, or finds no buy candidates, so you know where a plan is incomplete.

![Suggested trades with before · target · after bars](https://assets.wealthfolio.app/images/screenshots/allocation/rebalance.png) ![Suggested trades with before · target · after bars](https://assets.wealthfolio.app/images/screenshots/allocation/rebalance-dark.png)

Suggested trades with before · target · after bars

## Exporting

When the plan looks right, you can act on it:

-   **Export CSV**: downloads `rebalance-plan-{name}-{date}.csv` with metadata (currency, cash totals, max drift before/after) and one row per trade.
-   **Copy as text**: copies a plain-text summary to your clipboard to paste anywhere.

Wealthfolio doesn’t place trades for you. Take the plan to your broker and execute it there.

## Related

-   [Dashboards](https://wealthfolio.app/docs/guide/dashboards/): asset-allocation donut and Holdings → Insights cuts.
-   [Spending & Budgets](https://wealthfolio.app/docs/guide/spending-budgets/): the other major 3.5 module.

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