Since investors deposit highly appreciated stocks to the funds, Cache generally seeks to avoid selling contributed securities because of the tax consequences. Thus, rebalancing does not occur through selling and buying.
We bring each portfolio closer to its benchmark primarily through enrollments; by accepting contributions that improve alignment and declining those that would increase tracking error. Since we onboard new stocks approximately every two weeks, each close represents an effective "rebalance" towards the fund's benchmark.
In Flagship funds, we also rebalance the portfolio by holding shares of a benchmark-aligned ETF obtained through Index Sync.

Please see our disclosures before making any investment decisions.