In ETF investing, Rebalancing refers both to (1) the automatic quarterly reconstitution of the underlying HOSE benchmark index and (2) an investor periodically resetting their multi-ETF portfolio back to target weights.
HOSE Index Rebalancing Calendar
- VN30 & VN100 Semi-Annual Constituents Review: January and July (with quarterly weight updates in April and October).
- VN-Diamond & VNFinLead Reviews: April and October constituent reconstitutions (with quarterly weight capping in January and July).
Because ETFs automatically sell over-extended constituents above their weight cap (e.g., 10% or 15% single-stock cap) and add rising leaders every quarter, an ETF is a self-cleansing portfolio.