A. There are quite a few tools to select from. Below is a list of top 5 portfolio rebalancing softwares used by financial advisors:
- TradeWarrior
- tRx – Total Rebalance Expert
- Rebalance Express by RedBlack
- iRebal from TD Ameritrade
- Envestnet | Tamarac
All of the five tools have the following standard features:
- Automated portfolio rebalancing
- Tolerance bands, trading minimums and thresholds
- Cash management
- Multiple approval levels for trading and compliance oversight
- Ability to consider held-away assets
- Household-level management
- Ability to tag securities for particular client restrictions
- Security or Asset Allocation Model management
- Unlimited portfolio models containing equities, mutual funds or ETFs
- Models of models (Composite models)
- Substitute security equivalents (Assigning a non-model security to be equivalent of a model security, so it will not be sold)
- Tax management
- Tax loss harvesting
- Avoiding capital gains and wash sales
- Asset location optimization
- Flexible user interface for advisors
- Configurable – adding/removing/reordering grid columns, editing global settings