Hi everyone. Apologies if rhis has already been asked. I have imported a share that I already owned into a pie where I had a few shares of this same stock. This has now tipped me over my target weight. Will this mean that as I add more money to the pie, it will not purchase any more of this stock until it reaches the target weight. I have intentionally done this as the stock is high dividend and want the dividends reinvested into the other stocks in the pie. I don’t want these stocks sold to match the target weightings. Just want this to change naturally and if buy more of them, just to import them after. I hope this makes sense. Thanks in advance.
If you have your pie set on the default setting of target weighting, your investment amount will still be allocated based upon the actual percentage weight targets. e.g if you have a 10% target for O and the actual weighting is 15% due to an import, your deposit will still allocated the target 10% allocation.
I believe the option you’re referring to is the self balancing option, which allocates more to underweight instruments and less to overweight instruments.
No stocks will be sold, unless you do a rebalance via the option shown at the bottom of your pie.
Note you can also manually allocate if you wish, so you have full control.
I can’t comment for auto-invest being switched on, but I am sure another forum member may be able to advise; if that is specifically what you are referring to.
@Grim-Up-North correctly pointed out with his answer, whenever you chose to deposit funds manually you can also pick how the funds will be distributed. If your aim is not to purchase any more shares from this particular company, then you may consider using the Self-balancing method until the pie balances itself.
Also, if you keep the target weight of the company as it is, you definitely shouldn’t Rebalance your pie, because this will certainly sell stocks of the overweight slices, which is something that may not be aligned with your strategy based on your post.