Consolidated Returns as of 30 September 2024
Managing the Scott Burns Couch Potato To EUR Portfolio with a yearly rebalancing, you would have obtained a 9.59% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 8.78%.
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 Sep 30, 2024
Implementing different rebalancing strategies, the Scott Burns Couch Potato To EUR Portfolio guaranteed the following returns.
Portfolio returns are calculated in EUR, 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)
| Return (%) and number of rebalances as of Sep 30, 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~40Y) |
|||||
| No Rebalancing | 23.30 | (0) | 12.25 | (0) | 11.67 | (0) | 9.59 | (0) | 8.76 | (0) |
| Yearly Rebalancing | 15.82 | (1) | 8.64 | (5) | 9.07 | (10) | 8.92 | (30) | 8.25 | (40) |
| Half Yearly Rebalancing | 15.55 | (2) | 8.64 | (10) | 9.07 | (20) | 8.78 | (60) | 8.19 | (80) |
| Quarterly Rebalancing | 15.44 | (4) | 8.67 | (20) | 9.11 | (40) | 8.89 | (120) | 8.29 | (159) |
| 5% Tolerance per asset | 15.64 | (0) | 8.61 | (2) | 9.11 | (4) | 8.85 | (17) | 8.23 | (20) |
| 10% Tolerance per asset | 17.10 | (1) | 9.06 | (2) | 9.41 | (3) | 9.08 | (8) | 8.37 | (8) |
In order to have complete information about the portfolio, please refer to the Scott Burns Couch Potato To EUR Portfolio: ETF allocation and returns page.
Performances as of Sep 30, 2024
Historical returns and stats of Scott Burns Couch Potato To EUR Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 8.76 | (0) | 13.15 | 0.67 | -35.60 | 0.25 |
| Yearly Rebalancing | 8.25 | (40) | 12.05 | 0.68 | -27.21 | 0.30 |
| Half Yearly Rebalancing | 8.19 | (80) | 11.99 | 0.68 | -27.32 | 0.30 |
| Quarterly Rebalancing | 8.29 | (159) | 12.00 | 0.69 | -26.58 | 0.31 |
| 5% Tolerance per asset | 8.23 | (20) | 12.07 | 0.68 | -26.90 | 0.31 |
| 10% Tolerance per asset | 8.37 | (8) | 12.27 | 0.68 | -27.30 | 0.31 |
Drawdowns as of Sep 30, 2024
Historical Drawdowns of Scott Burns Couch Potato To EUR Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-35.60
Nov 2000 - Jan 2012
|
-27.21
Jun 1986 - Jan 1989
|
-27.32
Jun 2001 - May 2010
|
-26.58
Jun 2001 - May 2010
|
-26.90
Jun 2001 - May 2010
|
-27.30
Jun 1986 - Jan 1989
|
|
-27.30
Jun 1986 - Jan 1989
|
-26.51
Jun 2001 - Apr 2010
|
-25.89
Jun 1986 - Jan 1989
|
-25.58
Sep 1989 - May 1991
|
-26.37
Jun 1986 - Jan 1989
|
-26.49
Sep 1989 - May 1991
|
|
-26.49
Sep 1989 - May 1991
|
-25.61
Sep 1989 - May 1991
|
-25.55
Sep 1989 - May 1991
|
-25.40
Jun 1986 - Jan 1989
|
-25.70
Sep 1989 - May 1991
|
-25.94
Jun 2001 - May 2010
|
|
-16.26
Feb 1994 - Aug 1995
|
-16.61
Feb 1994 - Sep 1995
|
-16.67
Feb 1994 - Sep 1995
|
-16.70
Feb 1994 - Sep 1995
|
-16.68
Feb 1994 - Sep 1995
|
-16.26
Feb 1994 - Aug 1995
|
|
-13.90
Jul 1998 - Jan 1999
|
-11.83
Mar 1985 - May 1986
|
-11.76
Mar 1985 - May 1986
|
-11.69
Mar 1985 - May 1986
|
-11.83
Mar 1985 - May 1986
|
-11.99
Jul 1998 - Jan 1999
|
| 5 Worst Drawdowns - Average | |||||
| -23.91 | -21.55 | -21.44 | -21.19 | -21.50 | -21.59 |
| 10 Worst Drawdowns - Average | |||||
| -17.82 | -15.94 | -15.85 | -15.74 | -15.96 | -16.29 |
For a deeper insight, please refer to the Scott Burns Couch Potato To EUR Portfolio: ETF allocation and returns page.
