Harry Browne US Permanent Portfolio To CAD: Rebalancing Strategy

Data Source: from August 1953 to August 2024
Consolidated Returns as of 31 August 2024

Managing the Harry Browne US Permanent Portfolio To CAD with a yearly rebalancing, you would have obtained a 9.55% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 6.61%.

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 Aug 31, 2024

Implementing different rebalancing strategies, the Harry Browne US Permanent 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)
HARRY BROWNE US PERMANENT PORTFOLIO TO CAD RETURNS
Period: August 1953 - August 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Aug 31, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~71Y)
No Rebalancing 24.46 (0) 13.64 (0) 13.30 (0) 9.55 (0) 9.55 (0)
Yearly Rebalancing 15.52 (1) 5.86 (5) 7.66 (10) 6.73 (30) 8.04 (71)
Half Yearly Rebalancing 15.41 (2) 5.81 (10) 7.72 (20) 6.61 (60) 7.94 (142)
Quarterly Rebalancing 15.46 (4) 5.96 (20) 7.82 (40) 6.66 (120) 7.88 (284)
5% Tolerance per asset 16.24 (0) 6.13 (3) 7.85 (5) 6.75 (19) 7.93 (46)
10% Tolerance per asset 16.56 (0) 6.39 (1) 8.04 (2) 7.16 (8) 8.24 (18)

In order to have complete information about the portfolio, please refer to the Harry Browne US Permanent Portfolio To CAD: ETF allocation and returns page.

Performances as of Aug 31, 2024

Historical returns and stats of Harry Browne US Permanent Portfolio To CAD, after implementing different rebalancing strategies.

HARRY BROWNE US PERMANENT PORTFOLIO TO CAD PERFORMANCES
Period: August 1953 - August 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 9.55 (0) 10.37 0.92 -34.87 0.27
Yearly Rebalancing 8.04 (71) 7.30 1.10 -13.09 0.61
Half Yearly Rebalancing 7.94 (142) 7.22 1.10 -12.95 0.61
Quarterly Rebalancing 7.88 (284) 7.16 1.10 -13.06 0.60
5% Tolerance per asset 7.93 (46) 7.18 1.10 -13.58 0.58
10% Tolerance per asset 8.24 (18) 7.17 1.15 -13.81 0.60
(*) Since Aug 1953 (~71 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Aug 31, 2024

Historical Drawdowns of Harry Browne US Permanent Portfolio To CAD, after implementing different rebalancing strategies.

HARRY BROWNE US PERMANENT PORTFOLIO TO CAD DRAWDOWNS
Period: August 1953 - August 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-34.87
Sep 2000 - Jan 2013
-13.09
Jun 1969 - Sep 1971
-12.95
Jun 1969 - Aug 1971
-13.06
Jun 1969 - Aug 1971
-13.58
Jun 1969 - Sep 1971
-13.81
Jun 1969 - Sep 1971
-23.28
Dec 1980 - Dec 1982
-12.07
Mar 2007 - Oct 2008
-12.01
Mar 2007 - Oct 2008
-12.10
Mar 2007 - Oct 2008
-11.98
Mar 2007 - Oct 2008
-11.76
Jan 2009 - Aug 2010
-20.68
Jun 1969 - Dec 1971
-11.36
Jan 2009 - Aug 2010
-11.36
Jan 2009 - Aug 2010
-11.39
Jan 2009 - Aug 2010
-11.69
Jan 2009 - Aug 2010
-11.25
Aug 1987 - Feb 1990
-19.50
Jan 2022 - Aug 2023
-10.75
Aug 1987 - Feb 1990
-11.04
Apr 1974 - Jan 1975
-10.68
Feb 1980 - Jun 1980
-10.68
Feb 1980 - Jun 1980
-10.89
Mar 2007 - Oct 2008
-18.95
Sep 1987 - Feb 1991
-10.68
Feb 1980 - Jun 1980
-10.68
Feb 1980 - Jun 1980
-10.33
Aug 2020 - Dec 2023
-10.33
Jan 2003 - Mar 2006
-10.12
Jan 2003 - Mar 2006
5 Worst Drawdowns - Average
-23.46 -11.59 -11.61 -11.51 -11.65 -11.56
10 Worst Drawdowns - Average
-18.43 -10.60 -10.55 -10.49 -10.55 -10.46

For a deeper insight, please refer to the Harry Browne US Permanent Portfolio To CAD: ETF allocation and returns page.