How it works
Total = sum of current values + new cash. Target value of each asset = Target % × Total.
- Buy & sell: trade = Target value − Current value.
- Buy only: new cash goes to underweight assets in proportion to how far they are below target. Any cash left after all targets are reached is split by target weights.
Example: $6,000 / $4,000 with a 50/50 target means sell $1,000 of the first and buy $1,000 of the second.