Portfolio Construction

Drift

Definition

What is Drift?

The movement of portfolio weights away from their targets because assets earn different returns.

Example in practice

Strong share gains cause the equity allocation to drift from 50% to 61%.

Keep learning

The complete collection of investments owned by an investor or managed under one mandate.

The process of selecting and combining investments to meet return, risk, liquidity, and time-horizon objectives.

A long-term target mix of asset classes based on an investor's objectives and constraints.

A statistic ranging from minus one to plus one that describes how two return series move together.

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