Pie drift

Also called: rebalancing, pie, target weight

How far a holding has moved from the target weight you set for it in the pie.

Formula

Drift = Actual weight − Target weight

Worked example

1. Actual weight = 24.00%
2. Target weight = 20.00%
3. Drift = 24.00% − 20.00% = +4.00%
4. In money: 4.00% × £1,500.00 pie = £60.00 over target

How to read it

Winners grow their share and losers shrink, so pies drift naturally. Rebalancing sells some of what's grown and buys what's lagged. Over 3 points off is flagged here.

Trading 212

See it with real numbers: Pies → (free account)