Yes, you can change the allocation/portfolio strategy of an account with an outstanding SBLOC balance. However, that may change the amount you are eligible to draw upon on a given day (this is the “Daily Allowable Distribution (DAD)” which is calculated by The Bancorp). This could trigger a maintenance call. For example, if you’ve borrowed the full amount available on a 70% stock portfolio and then raise your stock allocation to 90%, the value of your collateral may no longer cover your balance (that is, if you initially have a lower risk level and a fully-drawn line of credit, a further increase in the risk level could potentially trigger a maintenance call). You would not have the details of that available in the Betterment application prior to making the allocation change, so this is something to be aware of.
