Scott Burns US Couch Potato To CAD Portfolio: Rebalancing Strategy

Data Source: from January 1985 to August 2024
Consolidated Returns as of 31 August 2024

Managing the Scott Burns US Couch Potato To CAD Portfolio with a yearly rebalancing, you would have obtained a 8.91% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 8.29%.

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 Scott Burns US Couch Potato To CAD Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1985.

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)
SCOTT BURNS US COUCH POTATO TO CAD PORTFOLIO RETURNS
Period: January 1985 - 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
(~40Y)
No Rebalancing 21.37 (0) 12.54 (0) 11.97 (0) 8.91 (0) 9.93 (0)
Yearly Rebalancing 15.60 (1) 9.82 (5) 9.90 (10) 8.43 (30) 9.57 (40)
Half Yearly Rebalancing 15.36 (2) 9.81 (10) 9.91 (20) 8.29 (60) 9.50 (80)
Quarterly Rebalancing 15.41 (4) 9.92 (20) 9.99 (40) 8.41 (120) 9.62 (159)
5% Tolerance per asset 15.75 (1) 9.67 (2) 9.88 (4) 8.34 (17) 9.52 (20)
10% Tolerance per asset 16.03 (0) 10.02 (1) 10.12 (2) 8.55 (7) 9.65 (7)

In order to have complete information about the portfolio, please refer to the Scott Burns US Couch Potato To CAD Portfolio: ETF allocation and returns page.

Performances as of Aug 31, 2024

Historical returns and stats of Scott Burns US Couch Potato To CAD Portfolio, after implementing different rebalancing strategies.

SCOTT BURNS US COUCH POTATO TO CAD PORTFOLIO PERFORMANCES
Period: January 1985 - 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 9.93 (0) 9.50 1.05 -21.33 0.47
Yearly Rebalancing 9.57 (40) 8.38 1.14 -16.67 0.57
Half Yearly Rebalancing 9.50 (80) 8.31 1.14 -16.34 0.58
Quarterly Rebalancing 9.62 (159) 8.30 1.16 -16.20 0.59
5% Tolerance per asset 9.52 (20) 8.35 1.14 -16.51 0.58
10% Tolerance per asset 9.65 (7) 8.53 1.13 -16.73 0.58
(*) Since Jan 1985 (~40 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Aug 31, 2024

Historical Drawdowns of Scott Burns US Couch Potato To CAD Portfolio, after implementing different rebalancing strategies.

SCOTT BURNS US COUCH POTATO TO CAD PORTFOLIO DRAWDOWNS
Period: January 1985 - August 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-21.33
Feb 2007 - Dec 2011
-16.67
Sep 1987 - May 1989
-16.34
Feb 2007 - May 2011
-16.20
Feb 2007 - May 2011
-16.51
Feb 2007 - May 2011
-16.73
Sep 1987 - May 1989
-20.19
Sep 2000 - Jan 2007
-15.45
Feb 2007 - Jan 2011
-14.70
Sep 1987 - May 1989
-13.78
Sep 1987 - May 1989
-15.02
Sep 1987 - May 1989
-15.84
Feb 2007 - Jan 2011
-16.73
Sep 1987 - May 1989
-11.28
Apr 2002 - Feb 2004
-12.08
Apr 2002 - May 2005
-11.68
Apr 2002 - May 2004
-11.90
Apr 2002 - Nov 2006
-11.99
Apr 2002 - Nov 2006
-16.50
Jan 2022 - Jul 2023
-10.55
Jan 2022 - Jun 2023
-10.55
Jan 2022 - Jun 2023
-10.73
Jan 2022 - Jun 2023
-11.17
Jan 2022 - Jul 2023
-11.17
Jan 2022 - Jul 2023
-11.03
Feb 2020 - May 2020
-8.50
Jun 2005 - Nov 2006
-8.46
Jun 2005 - Nov 2006
-8.44
Jun 2005 - Nov 2006
-8.37
Jun 1990 - Jan 1991
-9.15
Jun 1990 - Jan 1991
5 Worst Drawdowns - Average
-17.16 -12.49 -12.43 -12.17 -12.59 -12.98
10 Worst Drawdowns - Average
-12.24 -9.79 -9.48 -9.62 -9.34 -9.63

For a deeper insight, please refer to the Scott Burns US Couch Potato To CAD Portfolio: ETF allocation and returns page.