It CAN be. It depends how you rebalance. If your target is 50/50 and one stock goes up, you can either sell that stock or buy more of the other one. Only one o

It CAN be. It depends how you rebalance. If your target is 50/50 and one stock goes up, you can either sell that stock or buy more of the other one. Only one of those models is a taxable event.