Tyler US Golden Butterfly To CAD Portfolio: Rebalancing Strategy

Data Source: from August 1953 to November 2024
Consolidated Returns as of 30 November 2024
This asset allocation includes ETFs not denominated in CAD. Returns are calculated using exchange rates or, if applicable, interest rate differentials for currency hedging.

Managing the Tyler US Golden Butterfly To CAD Portfolio with a yearly rebalancing, you would have obtained a 10.87% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 8.08%.

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 Nov 30, 2024

Implementing different rebalancing strategies, the Tyler US Golden Butterfly To CAD Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on August 1953.

Portfolio returns are calculated in CAD, 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)
TYLER US GOLDEN BUTTERFLY TO CAD PORTFOLIO RETURNS
Period: August 1953 - November 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Nov 30, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~71Y)
No Rebalancing 34.46 (0) 11.55 (0) 11.50 (0) 10.87 (0) 12.41 (0)
Yearly Rebalancing 25.09 (1) 7.87 (5) 8.47 (10) 8.15 (30) 9.88 (71)
Half Yearly Rebalancing 24.94 (2) 8.20 (10) 8.73 (20) 8.08 (60) 9.78 (142)
Quarterly Rebalancing 24.84 (4) 8.50 (20) 8.92 (40) 8.24 (120) 9.73 (285)
5% Tolerance per asset 25.35 (0) 8.29 (3) 8.79 (4) 8.29 (16) 9.79 (40)
10% Tolerance per asset 25.46 (0) 8.39 (1) 8.74 (1) 8.49 (7) 10.08 (16)

In order to have complete information about the portfolio, please refer to the Tyler US Golden Butterfly To CAD Portfolio: ETF allocation and returns page.

Performances as of Nov 30, 2024

Historical returns and stats of Tyler US Golden Butterfly To CAD Portfolio, after implementing different rebalancing strategies.

TYLER US GOLDEN BUTTERFLY TO CAD PORTFOLIO PERFORMANCES
Period: August 1953 - November 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 12.41 (0) 13.92 0.89 -44.97 0.28
Yearly Rebalancing 9.88 (71) 7.83 1.26 -17.79 0.56
Half Yearly Rebalancing 9.78 (142) 7.78 1.26 -17.92 0.55
Quarterly Rebalancing 9.73 (285) 7.73 1.26 -18.12 0.54
5% Tolerance per asset 9.79 (40) 7.78 1.26 -18.64 0.53
10% Tolerance per asset 10.08 (16) 8.17 1.23 -18.78 0.54
(*) Since Aug 1953 (~71 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Nov 30, 2024

Historical Drawdowns of Tyler US Golden Butterfly To CAD Portfolio, after implementing different rebalancing strategies.

TYLER US GOLDEN BUTTERFLY TO CAD PORTFOLIO DRAWDOWNS
Period: August 1953 - November 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-44.97
Feb 2007 - Jan 2013
-17.79
Jun 1969 - Dec 1971
-17.92
Jun 1969 - Sep 1971
-18.12
Jun 1969 - Dec 1971
-18.64
Jun 1969 - Dec 1971
-18.78
Jun 1969 - Dec 1971
-33.75
May 2002 - Jun 2005
-13.99
Mar 1974 - Jan 1975
-15.06
Mar 1974 - Jan 1975
-14.18
Mar 1974 - Jan 1975
-14.12
Mar 1974 - Jan 1975
-14.42
Mar 1974 - Feb 1975
-31.89
Sep 2018 - Jan 2021
-13.14
Mar 2007 - Nov 2008
-13.06
Feb 1980 - Jun 1980
-13.12
Mar 2007 - Nov 2008
-12.80
Mar 2007 - Nov 2008
-13.78
Feb 1980 - Jun 1980
-30.85
Dec 1968 - Feb 1972
-13.06
Feb 1980 - Jun 1980
-13.03
Mar 2007 - Nov 2008
-13.06
Feb 1980 - Jun 1980
-12.45
Apr 2002 - May 2005
-13.38
Jan 2009 - Sep 2010
-28.05
Jan 1973 - May 1975
-11.89
Jan 2009 - May 2010
-11.89
Jan 2009 - Jun 2010
-11.56
Jan 2009 - May 2010
-12.34
Feb 1980 - Jun 1980
-13.27
Sep 1987 - Jul 1989
5 Worst Drawdowns - Average
-33.90 -13.97 -14.19 -14.01 -14.07 -14.73
10 Worst Drawdowns - Average
-27.24 -12.09 -12.02 -11.90 -12.13 -12.96

For a deeper insight, please refer to the Tyler US Golden Butterfly To CAD Portfolio: ETF allocation and returns page.