Cache Exchange Funds don’t follow a fixed rebalancing schedule. Instead, we approach rebalancing opportunistically, using it as a tool to bring the portfolio closer to its benchmark while balancing incoming stock contributions, liquidity considerations, and long-term tax efficiency.
Once an ETF rebalance transaction is completed, benchmark alignment occurs continuously within the ETF as it seeks to align with the benchmark, helping it automatically adapt to shifting market conditions.
Outside of the ETF rebalancing strategy, Cache will generally seek to avoid selling contributed securities due to the tax implications associated with such transactions.