What is drift?

Your account will eventually move out of the allocation that we set it to, which we refer to as “drift.” This happens as various funds move independently of one another. For instance, one or more funds may be performing really well, which makes that fund’s percentage of the total portfolio become larger than the desired proportion. We’ve set an allowance for each fund category to drift, and once it moves out of that range, a optimize will be scheduled to reset the allocation.

Markets move daily, which means that your account will too. If one fund, or a category, moves enough, the portfolio may no longer be in the recommended percentages. We have different metrics that we’ll watch for your allocation, diversification, and individual funds. Once something is off, our system will create a optimize and get it back to where it needs to be.