For example, say I want to do a 50/50 allocation between my two ETFs. Do I just divide every contribution I make in half? When the ETFs grow, say one’s current value gets higher than the other, making it slightly off from 50/50. Do I correct that with every contribution I make, or do I just continue dividing my contributions in half regardless of the current price?
What effect does constant rebalancing have? It’s probably simple math, but I’m not getting it. Thanks