index rebalancing
Index rebalancing is the sacred, never-ending ritual triggered whenever a portfolio’s weights stray by the slightest. Investors construct mountains of fees to buy back the illusion of safety from market whims. Theoretically it promises risk reduction, yet in practice it’s a logistical chore cursed by timing and costs. Behind its veneer of rationality lies the perpetual fear of unpredictability that no one can ever relinquish.