Target allocation
Desired portfolio weights by asset class.
Definition
Target allocation is the portfolio mix you want (e.g. 45% stocks, 20% REITs, 25% ETFs, 10% bonds). The contribution simulator uses these weights to suggest where the next dollar should go.
Tools and guides
Related terms
- Contribution simulator— Tool that splits a monthly amount across asset classes.
- Rebalancing— Bringing the portfolio back toward target weights.