Betterment Robo Advisor 100 Value Tilt Portfolio: Rebalancing Strategy

Data Source: from January 1976 to November 2024
Consolidated Returns as of 30 November 2024

Managing the Betterment Robo Advisor 100 Value Tilt Portfolio with a yearly rebalancing, you would have obtained a 9.75% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 8.69%.

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 Betterment Robo Advisor 100 Value Tilt Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1976.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
BETTERMENT ROBO ADVISOR 100 VALUE TILT PORTFOLIO RETURNS
Period: January 1976 - 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
(~49Y)
No Rebalancing 30.30 (0) 11.74 (0) 10.03 (0) 9.75 (0) 11.64 (0)
Yearly Rebalancing 24.15 (1) 10.04 (5) 8.68 (10) 8.77 (30) 11.28 (49)
Half Yearly Rebalancing 24.16 (2) 10.01 (10) 8.65 (20) 8.69 (60) 11.06 (98)
Quarterly Rebalancing 24.12 (4) 10.00 (20) 8.64 (40) 8.62 (120) 10.95 (196)
5% Tolerance per asset 24.45 (1) 10.07 (2) 8.74 (3) 8.73 (8) 11.09 (16)
10% Tolerance per asset 25.72 (0) 10.39 (0) 9.05 (1) 9.02 (3) 11.66 (8)

In order to have complete information about the portfolio, please refer to the Betterment Robo Advisor 100 Value Tilt Portfolio: ETF allocation and returns page.

Performances as of Nov 30, 2024

Historical returns and stats of Betterment Robo Advisor 100 Value Tilt Portfolio, after implementing different rebalancing strategies.

BETTERMENT ROBO ADVISOR 100 VALUE TILT PORTFOLIO PERFORMANCES
Period: January 1976 - 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 11.64 (0) 15.51 0.75 -53.42 0.22
Yearly Rebalancing 11.28 (49) 15.54 0.73 -54.55 0.21
Half Yearly Rebalancing 11.06 (98) 15.57 0.71 -54.50 0.20
Quarterly Rebalancing 10.95 (196) 15.57 0.70 -54.47 0.20
5% Tolerance per asset 11.09 (16) 15.55 0.71 -54.55 0.20
10% Tolerance per asset 11.66 (8) 15.59 0.75 -54.95 0.21
(*) Since Jan 1976 (~49 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Nov 30, 2024

Historical Drawdowns of Betterment Robo Advisor 100 Value Tilt Portfolio, after implementing different rebalancing strategies.

BETTERMENT ROBO ADVISOR 100 VALUE TILT PORTFOLIO DRAWDOWNS
Period: January 1976 - November 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-53.42
Nov 2007 - Dec 2012
-54.55
Nov 2007 - Jan 2013
-54.50
Nov 2007 - Jan 2013
-54.47
Nov 2007 - Jan 2013
-54.55
Nov 2007 - Jan 2013
-54.95
Nov 2007 - Mar 2013
-31.30
Sep 2000 - Dec 2003
-37.03
Apr 2000 - Oct 2004
-37.20
Apr 2000 - Oct 2004
-37.41
Apr 2000 - Oct 2004
-38.45
Apr 2000 - Nov 2004
-37.90
Apr 2000 - Oct 2004
-27.74
Jan 2020 - Nov 2020
-25.46
Sep 1987 - Jan 1989
-26.80
Sep 1987 - Jan 1989
-26.66
Sep 1987 - Jan 1989
-26.92
Sep 1987 - Feb 1989
-25.20
Sep 1987 - Jan 1989
-23.72
Sep 1987 - Jan 1989
-24.17
Jan 2022 - Feb 2024
-24.15
Jan 2022 - Feb 2024
-24.17
Jan 2022 - Feb 2024
-24.06
Jan 2022 - Feb 2024
-24.11
Jan 2020 - Nov 2020
-22.51
Jan 1990 - May 1991
-24.14
Jan 2020 - Nov 2020
-24.14
Jan 2020 - Nov 2020
-24.14
Jan 2020 - Nov 2020
-24.03
Jan 2020 - Nov 2020
-24.02
Jan 2022 - Dec 2023
5 Worst Drawdowns - Average
-31.74 -33.07 -33.36 -33.37 -33.60 -33.24
10 Worst Drawdowns - Average
-24.88 -25.78 -26.00 -26.05 -25.91 -25.14

For a deeper insight, please refer to the Betterment Robo Advisor 100 Value Tilt Portfolio: ETF allocation and returns page.