The directed trades feature allows you to swap out funds or stocks for other funds or stocks without triggering a full rebalance. This gives you more granular control when you want to facilitate a surgical swap instead of a full portfolio rebalance. The directed trade workflow is especially helpful when replacing a single position because the directed trade feature focuses the rebalance to only two trades - a buy for the new position, and a sell for the position you eliminated
Using Directed Trades
To trigger a Directed trade in a model portfolio or an individual account target, follow these steps:
1. First select a model or target to update, in this case, we'll use a model.
2. Next, identify the security or securities you want to exchange for another security.
3. To swap securities, simply delete the security you want to sell, and add the security you want to buy.
In this example, I'm removing SPY from my model at 30% and exchanging it for VOO at 30%
4. Apply these changes to generate trades.
Trading will create two trades for each account linked to the model portfolio - one sell and one buy.
Even though other positions in the account may be out of tolerance, the rebalance is isolated to just sell SPY and buy VOO. You can perform this operation on as many securities as you like and still get a directed trade as opposed to a full rebalance.
Looking to perform a full rebalance? No problem! You can override the directed trade with the REBALANCE NOW option from within an account. Simply navigate to a client's current portfolio, and click the three-dot ACCOUNT ACTIONS menu. You'll see the option to "REBALANCE NOW" from within this menu. (see animation below)