Best Of
Rebalancing keeps your portfolio lined up with your target allocation. We ranked these tools on how well they calculate the right trades, keep your tax bill down, and handle multi-account portfolios.
Every ranking uses the same transparent criteria so you can audit the inputs.
Honest pros, cons, and verdicts for every app in the category.
Best for hands-off automated rebalancing
Wealthfront's automated rebalancing is the gold standard for managed accounts. It uses tax-loss harvesting and drift thresholds to rebalance without racking up unnecessary taxes.
Best for goal-based investors who want automated rebalancing
Betterment handles automated rebalancing with smart tax coordination across your IRA and taxable accounts. The goal-based setup makes it easy to set different targets for each goal.
Best for self-directed investors who want cross-account allocation visibility
Clarity shows your current allocation vs. your targets across all connected accounts. It won't execute trades for you, but the AI can suggest rebalancing moves and walk you through the tax implications.
Best free option for investors who want automated allocation management
M1's Pie system lets you set target allocations and rebalances automatically through new deposits and scheduled events. The basic version is free, which is hard to argue with.
Best for seeing allocation drift before deciding on an advisor
Empower's Investment Checkup shows you where your allocation has drifted and suggests changes. But if you want actual automated rebalancing, you'll need to sign up for their paid advisory service.
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Fact-checked answers pulled from the corresponding category research.
Most research says to rebalance when your allocation drifts 5%+ from targets, or quarterly at most. Doing it more often just racks up transaction costs and taxes. Threshold-based rebalancing generally beats calendar-based.
In taxable accounts, yes—selling appreciated assets to rebalance creates capital gains. Tax-aware tools minimize this by rebalancing through new contributions, harvesting losses, and prioritizing moves in tax-advantaged accounts first.
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