Aim Ways Aim comfortable trip To EUR Portfolio: Rebalancing Strategy

Data Source: from January 1985 to September 2024
Consolidated Returns as of 30 September 2024

Managing the Aim Ways Aim comfortable trip To EUR Portfolio with a yearly rebalancing, you would have obtained a 9.70% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 7.58%.

How do returns and drawdowns change, implementing different rebalancing strategies?

Rebalancing Strategies

In order to keep risk under control, you should rebalance assets quotes from time to time, so to keep them at the original percentage of the asset allocation.

Rebalancing can be performed in several ways.

At fixed time intervals:
  • Yearly: Jan 1st
  • Half Yearly: Jan 1st, Jul 1st
  • Quarterly: Jan 1st, Apr 1st, Jul 1st, Oct 1st
When a component (at least one) diverges from its original weight beyond a certain threshold (e.g. 5% or 10%).

Portfolio Returns as of Sep 30, 2024

Implementing different rebalancing strategies, the Aim Ways Aim comfortable trip To EUR Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1985.

Portfolio returns are calculated in EUR, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
  • the adjustment for actual currency exchange rates (simulation derived from original US returns)
AIM WAYS AIM COMFORTABLE TRIP TO EUR PORTFOLIO RETURNS
Period: January 1985 - September 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Sep 30, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~40Y)
No Rebalancing 22.98 (0) 13.99 (0) 12.57 (0) 9.70 (0) 8.54 (0)
Yearly Rebalancing 15.35 (1) 7.34 (5) 7.59 (10) 7.78 (30) 7.06 (40)
Half Yearly Rebalancing 15.12 (2) 7.34 (10) 7.67 (20) 7.58 (60) 6.92 (80)
Quarterly Rebalancing 15.05 (4) 7.41 (20) 7.71 (40) 7.70 (120) 7.04 (159)
5% Tolerance per asset 15.44 (1) 7.72 (3) 7.87 (4) 7.80 (13) 7.05 (14)
10% Tolerance per asset 18.02 (0) 7.85 (0) 8.41 (1) 8.38 (5) 7.56 (5)

In order to have complete information about the portfolio, please refer to the Aim Ways Aim comfortable trip To EUR Portfolio: ETF allocation and returns page.

Performances as of Sep 30, 2024

Historical returns and stats of Aim Ways Aim comfortable trip To EUR Portfolio, after implementing different rebalancing strategies.

AIM WAYS AIM COMFORTABLE TRIP TO EUR PORTFOLIO PERFORMANCES
Period: January 1985 - September 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 8.54 (0) 14.01 0.61 -52.13 0.16
Yearly Rebalancing 7.06 (40) 9.84 0.72 -23.70 0.30
Half Yearly Rebalancing 6.92 (80) 9.77 0.71 -24.45 0.28
Quarterly Rebalancing 7.04 (159) 9.79 0.72 -22.80 0.31
5% Tolerance per asset 7.05 (14) 9.89 0.71 -23.27 0.30
10% Tolerance per asset 7.56 (5) 10.03 0.75 -23.99 0.32
(*) Since Jan 1985 (~40 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Sep 30, 2024

Historical Drawdowns of Aim Ways Aim comfortable trip To EUR Portfolio, after implementing different rebalancing strategies.

AIM WAYS AIM COMFORTABLE TRIP TO EUR PORTFOLIO DRAWDOWNS
Period: January 1985 - September 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-52.13
Sep 2000 - Nov 2013
-23.70
Nov 2000 - Jan 2006
-24.45
Nov 2000 - Feb 2006
-22.80
Nov 2000 - Dec 2005
-23.27
Nov 2000 - Feb 2006
-23.99
Sep 1989 - May 1991
-23.99
Sep 1989 - May 1991
-22.69
Sep 1989 - May 1991
-22.34
Sep 1989 - May 1991
-22.30
Sep 1989 - May 1991
-22.41
Sep 1989 - May 1991
-19.92
Apr 2002 - Nov 2005
-19.38
Jun 1986 - Jan 1989
-18.96
Jun 1986 - Jan 1989
-18.03
Jun 1986 - Jul 1988
-17.46
Aug 1987 - Jul 1988
-19.38
Jun 1986 - Jan 1989
-19.38
Jun 1986 - Jan 1989
-16.86
Jan 2022 - Jul 2023
-16.45
Feb 1994 - Jan 1996
-16.38
Feb 1994 - Jan 1996
-16.41
Feb 1994 - Jan 1996
-16.17
Feb 1994 - Jan 1996
-16.21
Feb 1994 - Nov 1995
-16.21
Feb 1994 - Nov 1995
-13.01
Mar 1992 - Nov 1992
-13.04
Mar 1992 - Nov 1992
-13.03
Mar 1992 - Nov 1992
-13.04
Mar 1992 - Nov 1992
-13.43
Mar 1992 - Nov 1992
5 Worst Drawdowns - Average
-25.71 -18.96 -18.85 -18.40 -18.85 -18.59
10 Worst Drawdowns - Average
-19.73 -14.07 -13.97 -14.12 -14.02 -14.09

For a deeper insight, please refer to the Aim Ways Aim comfortable trip To EUR Portfolio: ETF allocation and returns page.