What is a basket?

A basket is a single, tradeable collection of stocks or ETFs grouped around a theme, factor, or strategy — such as a sector, a momentum signal, or a smart-beta rule — that investors can subscribe to and rebalance as one unit instead of managing each holding individually.

How a basket works

Instead of buying and tracking a dozen individual stocks, an investor subscribes to a basket once. The basket carries a fixed set of holdings with target weights — for example, five momentum leaders at 20% each, or a smart-beta factor tilt across a sector. Subscribing allocates capital across every holding in one order rather than placing each trade by hand.

Why baskets exist

Diversification without the busywork
A published, backtestable strategy others can subscribe to
One-tap rebalancing when weights drift from target

When a basket's holdings drift from their target weights — a winner grows too large a share, a laggard shrinks too small — it needs rebalancing. See Rebalancing explained for what that means and how it works.

In shortA basket turns a multi-stock strategy into one subscribable, rebalanceable position.