How Many ETFs Should You Replace Each Year? Expert Explains

ETF momentum portfolios can maintain relatively low churn even with regular rebalancing. A five-ETF basket may see around 12–15 changes over a one-year period, translating to roughly one ETF change per month on average. Prashant Shah, Founder & CEO, Definedge Securities, explains that churn can vary depending on market conditions, with some years seeing fewer than eight changes. The approach allows investors to maintain focused exposure while adapting to shifts in momentum across sectors, indices and asset classes. Multiple ETF baskets can also be used to diversify exposure while retaining a concentrated investment approach within each portfolio.