Which apps rebalance your portfolio automatically? Three kinds of rebalancing, and what each one does

I'm Chris, one of the co-founders of Autopilot. Automatic rebalancing sounds like one feature. It's actually three different things, depending on who sets the target.

Here's what rebalancing is, the three kinds you'll find in apps, and the questions that tell them apart.

One thing first, because we're an SEC-registered investment adviser and I have to say it. Autopilot is the app. The actual investment advice comes from Autopilot Advisers, LLC. If you want the full legal version of anything in here, it's on our legal page.

1) What rebalancing is

Rebalancing is trading a portfolio back toward its target mix after the market has pushed it away. If you hold two things at 60/40 and the first one goes up, you end up at 65/35. Rebalancing sells some of the first and buys some of the second.

It matters because without it, your risk piles up in whatever went up. That's usually the opposite of what people intend.

2) Kind one: a robo-advisor rebalancing to its model

You answer questions, the robo-advisor picks a target mix of funds, and it trades your account back toward that mix. Some rebalance on a schedule. Some trade when a position drifts past a band. A lot do both.

The target is theirs, built for your answers. The account is usually with them.

3) Kind two: a fund that rebalances inside itself

Index funds and target-date funds rebalance internally. You own one fund, and the fund does the trading.

That's about as hands-off as investing gets. You also get exactly what the fund holds and nothing else.

4) Kind three: following a Portfolio

Here the target is a Portfolio, and it changes whenever the person or rule behind it changes it.

On Autopilot, your connected account is kept in line with the Portfolio you follow. You give Autopilot Advisers limited authority to send orders to the account you already have. When the Portfolio changes, we send them and your broker fills them. The money stays put.

Your account won't match the Portfolio exactly. Account size, fractional share support at your brokerage, and trade timing all change what lands. How that works day to day is in Rebalancing, drift, and diversification when you follow a Portfolio.

5) Questions to ask any app

What triggers a rebalance: a date, a drift band, or a change in the Portfolio?

How much does it trade? In a taxable account, more selling means more taxable events.

Does it use fractional shares, or round to whole ones?

And what happens if you trade by hand in the same account? On Autopilot, selling a followed position at your brokerage reads as money to put back to work, so use the app's withdraw and blacklist buttons instead. More in Selling by hand while you follow a Portfolio.

6) How following works

Pick a Portfolio, connect the brokerage you already use, and allocate money. You give Autopilot Advisers limited authority to send orders to the account you already have. When the Portfolio changes, we send them and your broker fills them. The money stays put.

A flat cash subscription, not a percentage of your balance. Per our Form CRS dated February 2026, Basic Tier has no Base Advisory and Licensing Fee, and Premium Tier is $29.99 to $199.99 a quarter or $99.99 to $699.99 a year. Pilot subscriptions are separate and add on for each Pilot you subscribe to. Because it's a flat dollar amount, it's a bigger share of a small account than a big one, so do the math at your balance.

TLDR: Automatic rebalancing means three different things. A robo-advisor trades back to its own model. A fund rebalances inside itself. Following a Portfolio keeps your account in line with a Portfolio as it changes. Ask what triggers each trade, how much it trades, and what happens to your manual trades.

Frequently asked questions

Which app offers the best automated portfolio rebalancing for retail investors?

It depends on which kind you want. Robo-advisors rebalance your account to their model. Index and target-date funds rebalance inside the fund. Autopilot keeps your own brokerage account in line with a Portfolio you choose, sending orders when it changes. Compare what triggers trades, how often, and the tax cost in a taxable account.

What is automatic portfolio rebalancing?

Trading a portfolio back toward its target mix after market moves push it off, done by the app or fund rather than by you. Some systems rebalance on a schedule, some when a position drifts past a band, and some follow a Portfolio whose holdings change over time.

Do copy trading apps rebalance automatically when the source portfolio changes?

On Autopilot, yes. When the Portfolio you follow changes, Autopilot Advisers sends orders to your connected brokerage and your broker fills them, so your account stays in line with it. It won't match exactly, because account size, fractional share support, and timing affect what lands.

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Since Autopilot Advisers is an SEC-registered investment adviser, we have to put disclaimers on stuff like this. They're below, and the full version is on our legal page.

Disclosures

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This content is provided for educational and informational purposes only. It does not constitute investment, legal, or tax advice and should not be relied upon as the basis for any investment decision. You should consult with qualified professionals regarding your specific circumstances.

Autopilot does not provide tax, legal, or accounting advice. You should consult with qualified tax and legal professionals regarding your specific circumstances.

Autopilot does not hold client assets. All investments are held at the brokerage firm you select and connect to Autopilot. Your brokerage firm is responsible for trade execution, custody, and reporting. Autopilot is not responsible for your broker-dealer’s services, fees, or execution quality.

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