Consolidated Returns as of 30 November 2024
Managing the Betterment Robo Advisor 10 Value Tilt Portfolio with a yearly rebalancing, you would have obtained a 5.39% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 4.26%.
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.
At fixed time intervals:
- Yearly: Jan 1st
- Half Yearly: Jan 1st, Jul 1st
- Quarterly: Jan 1st, Apr 1st, Jul 1st, Oct 1st
Portfolio Returns as of Nov 30, 2024
Implementing different rebalancing strategies, the Betterment Robo Advisor 10 Value Tilt Portfolio guaranteed the following returns.
Portfolio returns are calculated in USD, assuming:
- No fees or capital gain taxes
- the reinvestment of dividends, if existing
| Return (%) and number of rebalances as of Nov 30, 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~40Y) |
|||||
| No Rebalancing | 15.06 | (0) | 4.73 | (0) | 4.27 | (0) | 5.39 | (0) | 6.40 | (0) |
| Yearly Rebalancing | 7.18 | (1) | 2.01 | (5) | 2.14 | (10) | 4.31 | (30) | 5.57 | (40) |
| Half Yearly Rebalancing | 7.10 | (2) | 2.04 | (10) | 2.14 | (20) | 4.26 | (60) | 5.51 | (80) |
| Quarterly Rebalancing | 7.12 | (4) | 2.12 | (20) | 2.18 | (40) | 4.29 | (120) | 5.53 | (160) |
| 5% Tolerance per asset | 7.50 | (0) | 2.14 | (1) | 2.23 | (1) | 4.27 | (4) | 5.56 | (5) |
| 10% Tolerance per asset | 8.92 | (0) | 2.55 | (0) | 2.43 | (0) | 4.41 | (2) | 5.66 | (2) |
In order to have complete information about the portfolio, please refer to the Betterment Robo Advisor 10 Value Tilt Portfolio: ETF allocation and returns page.
Performances as of Nov 30, 2024
Historical returns and stats of Betterment Robo Advisor 10 Value Tilt Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 6.40 | (0) | 4.87 | 1.32 | -15.28 | 0.42 |
| Yearly Rebalancing | 5.57 | (40) | 2.90 | 1.92 | -8.91 | 0.63 |
| Half Yearly Rebalancing | 5.51 | (80) | 2.90 | 1.90 | -9.05 | 0.61 |
| Quarterly Rebalancing | 5.53 | (160) | 2.91 | 1.90 | -9.10 | 0.61 |
| 5% Tolerance per asset | 5.56 | (5) | 3.04 | 1.83 | -9.15 | 0.61 |
| 10% Tolerance per asset | 5.66 | (2) | 3.29 | 1.72 | -10.14 | 0.56 |
Drawdowns as of Nov 30, 2024
Historical Drawdowns of Betterment Robo Advisor 10 Value Tilt Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-15.28
Jan 2022 - Mar 2024
|
-8.91
Sep 2021 - Jul 2024
|
-9.05
Sep 2021 - Jul 2024
|
-9.10
Sep 2021 - Jul 2024
|
-9.15
Sep 2021 - Jul 2024
|
-10.14
Sep 2021 - Jun 2024
|
|
-12.08
Jun 2008 - Nov 2009
|
-3.55
Apr 2008 - May 2009
|
-3.90
Apr 2008 - May 2009
|
-4.22
Apr 2008 - May 2009
|
-4.53
May 2008 - Jul 2009
|
-5.81
May 2008 - Jul 2009
|
|
-8.81
Jan 2020 - Jul 2020
|
-3.17
Feb 1994 - Feb 1995
|
-3.17
Feb 1994 - Feb 1995
|
-3.17
Feb 1994 - Feb 1995
|
-4.12
Feb 1994 - Apr 1995
|
-4.14
Feb 1994 - Apr 1995
|
|
-4.32
Jun 2011 - Jan 2012
|
-1.68
Apr 2004 - Sep 2004
|
-1.68
Apr 2004 - Sep 2004
|
-1.66
Apr 2004 - Sep 2004
|
-2.12
Feb 2020 - May 2020
|
-2.98
Aug 1990 - Nov 1990
|
|
-4.25
Feb 2018 - Mar 2019
|
-1.52
Aug 1990 - Oct 1990
|
-1.65
Aug 1990 - Oct 1990
|
-1.65
Aug 1990 - Oct 1990
|
-1.86
Apr 2004 - Sep 2004
|
-2.27
Jan 1990 - May 1990
|
| 5 Worst Drawdowns - Average | |||||
| -8.95 | -3.77 | -3.89 | -3.96 | -4.36 | -5.07 |
| 10 Worst Drawdowns - Average | |||||
| -6.17 | -2.54 | -2.58 | -2.62 | -2.97 | -3.54 |
For a deeper insight, please refer to the Betterment Robo Advisor 10 Value Tilt Portfolio: ETF allocation and returns page.
