Consolidated Returns as of 30 November 2024
Managing the Betterment Robo Advisor 20 Value Tilt Portfolio with a yearly rebalancing, you would have obtained a 6.51% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 5.23%.
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 20 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 | 18.82 | (0) | 6.05 | (0) | 5.48 | (0) | 6.51 | (0) | 7.56 | (0) |
| Yearly Rebalancing | 9.47 | (1) | 2.77 | (5) | 2.99 | (10) | 5.32 | (30) | 6.66 | (40) |
| Half Yearly Rebalancing | 9.35 | (2) | 2.84 | (10) | 3.00 | (20) | 5.23 | (60) | 6.56 | (80) |
| Quarterly Rebalancing | 9.37 | (4) | 2.96 | (20) | 3.06 | (40) | 5.28 | (120) | 6.59 | (160) |
| 5% Tolerance per asset | 9.64 | (0) | 2.93 | (1) | 3.09 | (2) | 5.35 | (6) | 6.65 | (8) |
| 10% Tolerance per asset | 10.43 | (0) | 2.98 | (1) | 3.28 | (1) | 5.35 | (2) | 6.69 | (3) |
In order to have complete information about the portfolio, please refer to the Betterment Robo Advisor 20 Value Tilt Portfolio: ETF allocation and returns page.
Performances as of Nov 30, 2024
Historical returns and stats of Betterment Robo Advisor 20 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 | 7.56 | (0) | 7.20 | 1.05 | -22.65 | 0.33 |
| Yearly Rebalancing | 6.66 | (40) | 4.47 | 1.49 | -12.16 | 0.55 |
| Half Yearly Rebalancing | 6.56 | (80) | 4.46 | 1.47 | -12.38 | 0.53 |
| Quarterly Rebalancing | 6.59 | (160) | 4.49 | 1.47 | -12.45 | 0.53 |
| 5% Tolerance per asset | 6.65 | (8) | 4.68 | 1.42 | -12.31 | 0.54 |
| 10% Tolerance per asset | 6.69 | (3) | 4.83 | 1.38 | -12.78 | 0.52 |
Drawdowns as of Nov 30, 2024
Historical Drawdowns of Betterment Robo Advisor 20 Value Tilt Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-22.65
Nov 2007 - Sep 2010
|
-12.16
Sep 2021 - Jul 2024
|
-12.38
Sep 2021 - Jul 2024
|
-12.45
Sep 2021 - Jul 2024
|
-12.31
Sep 2021 - Jul 2024
|
-12.78
Sep 2021 - Jul 2024
|
|
-18.72
Jan 2022 - Mar 2024
|
-9.97
May 2008 - Jul 2009
|
-10.61
May 2008 - Aug 2009
|
-11.28
Jun 2008 - Aug 2009
|
-11.79
Jun 2008 - Nov 2009
|
-9.45
Jun 2008 - Sep 2009
|
|
-13.51
Jan 2020 - Aug 2020
|
-4.85
Sep 1987 - Feb 1988
|
-4.47
Feb 1994 - Apr 1995
|
-4.46
Feb 1994 - Apr 1995
|
-5.61
May 1998 - Nov 1998
|
-6.46
Aug 1990 - Jan 1991
|
|
-8.53
May 1998 - Nov 1998
|
-4.47
Feb 1994 - Apr 1995
|
-4.40
Aug 1990 - Dec 1990
|
-4.40
Aug 1990 - Dec 1990
|
-5.10
Feb 2020 - Jul 2020
|
-5.98
Sep 1987 - Feb 1988
|
|
-7.26
May 2011 - Feb 2012
|
-4.38
Feb 2020 - Jun 2020
|
-4.40
Sep 1987 - Jan 1988
|
-4.38
Feb 2020 - Jun 2020
|
-4.88
Aug 1990 - Dec 1990
|
-5.44
May 1998 - Nov 1998
|
| 5 Worst Drawdowns - Average | |||||
| -14.13 | -7.17 | -7.25 | -7.39 | -7.94 | -8.02 |
| 10 Worst Drawdowns - Average | |||||
| -10.16 | -5.29 | -5.34 | -5.36 | -5.92 | -6.02 |
For a deeper insight, please refer to the Betterment Robo Advisor 20 Value Tilt Portfolio: ETF allocation and returns page.
