Gyroscopic Investing US Desert Portfolio To CAD: Rebalancing Strategy

Data Source: from August 1953 to November 2024
Consolidated Returns as of 30 November 2024

Managing the Gyroscopic Investing US Desert Portfolio To CAD with a yearly rebalancing, you would have obtained a 10.05% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 6.75%.

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 Gyroscopic Investing US Desert Portfolio To CAD 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)
GYROSCOPIC INVESTING US DESERT PORTFOLIO TO CAD 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 37.14 (0) 14.86 (0) 13.65 (0) 10.05 (0) 9.94 (0)
Yearly Rebalancing 19.84 (1) 6.16 (5) 6.92 (10) 6.89 (30) 8.27 (71)
Half Yearly Rebalancing 19.36 (2) 6.11 (10) 6.90 (20) 6.75 (60) 8.19 (142)
Quarterly Rebalancing 19.23 (4) 6.23 (20) 6.99 (40) 6.85 (120) 8.17 (285)
5% Tolerance per asset 19.66 (1) 6.43 (5) 7.08 (7) 6.98 (24) 8.28 (46)
10% Tolerance per asset 19.83 (0) 6.41 (2) 7.13 (3) 7.29 (9) 8.51 (17)

In order to have complete information about the portfolio, please refer to the Gyroscopic Investing US Desert Portfolio To CAD: ETF allocation and returns page.

Performances as of Nov 30, 2024

Historical returns and stats of Gyroscopic Investing US Desert Portfolio To CAD, after implementing different rebalancing strategies.

GYROSCOPIC INVESTING US DESERT PORTFOLIO TO CAD 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 9.94 (0) 10.37 0.96 -35.01 0.28
Yearly Rebalancing 8.27 (71) 6.94 1.19 -13.02 0.64
Half Yearly Rebalancing 8.19 (142) 6.89 1.19 -12.98 0.63
Quarterly Rebalancing 8.17 (285) 6.86 1.19 -13.01 0.63
5% Tolerance per asset 8.28 (46) 6.91 1.20 -12.74 0.65
10% Tolerance per asset 8.51 (17) 7.04 1.21 -13.05 0.65
(*) Since Aug 1953 (~71 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Nov 30, 2024

Historical Drawdowns of Gyroscopic Investing US Desert Portfolio To CAD, after implementing different rebalancing strategies.

GYROSCOPIC INVESTING US DESERT PORTFOLIO TO CAD DRAWDOWNS
Period: August 1953 - November 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-35.01
Sep 2000 - Jan 2013
-13.02
Mar 2007 - Oct 2008
-12.98
Mar 2007 - Oct 2008
-13.01
Mar 2007 - Oct 2008
-12.74
Mar 2007 - Oct 2008
-13.05
Mar 2007 - Oct 2008
-25.39
Jan 1973 - May 1975
-11.59
Jun 1969 - Jan 1971
-11.62
Jun 1969 - Jan 1971
-11.74
Jun 1969 - Jan 1971
-11.48
Jun 1969 - Jan 1971
-12.45
Jun 1969 - Mar 1971
-21.63
Dec 1968 - Apr 1971
-10.80
Jan 2003 - Dec 2006
-10.93
Jan 2003 - Dec 2006
-10.91
Jan 2003 - Dec 2006
-11.10
Dec 2021 - Dec 2023
-11.69
Jan 2022 - Dec 2023
-21.39
Sep 1987 - Aug 1989
-10.50
Dec 2021 - Dec 2023
-10.70
Oct 1973 - Jan 1975
-10.62
Dec 2021 - Dec 2023
-10.71
Jan 2003 - Nov 2006
-10.84
Jan 2003 - Nov 2006
-19.40
Jan 2022 - Jul 2023
-10.21
Sep 1987 - Jul 1989
-10.62
Dec 2021 - Dec 2023
-9.99
Mar 1974 - Jan 1975
-10.37
Oct 1973 - Jan 1975
-10.06
Apr 2009 - Aug 2010
5 Worst Drawdowns - Average
-24.56 -11.22 -11.37 -11.25 -11.28 -11.62
10 Worst Drawdowns - Average
-18.46 -9.97 -9.96 -9.84 -9.90 -10.24

For a deeper insight, please refer to the Gyroscopic Investing US Desert Portfolio To CAD: ETF allocation and returns page.