Scott Burns Seven Value Portfolio: Rebalancing Strategy

Data Source: from January 1985 to September 2024
Consolidated Returns as of 30 September 2024

Managing the Scott Burns Seven Value Portfolio with a yearly rebalancing, you would have obtained a 8.34% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 8.35%.

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 Sep 30, 2024

Implementing different rebalancing strategies, the Scott Burns Seven Value 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 USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
SCOTT BURNS SEVEN VALUE PORTFOLIO RETURNS
Period: January 1985 - September 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Sep 30, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~40Y)
No Rebalancing 24.32 (0) 10.07 (0) 7.87 (0) 8.34 (0) 9.50 (0)
Yearly Rebalancing 20.36 (1) 9.24 (5) 7.21 (10) 8.48 (30) 9.67 (40)
Half Yearly Rebalancing 20.19 (2) 8.85 (10) 7.03 (20) 8.35 (60) 9.58 (80)
Quarterly Rebalancing 20.64 (4) 9.18 (20) 7.18 (40) 8.46 (120) 9.68 (159)
5% Tolerance per asset 20.35 (0) 9.57 (3) 7.46 (4) 8.62 (10) 9.85 (14)
10% Tolerance per asset 19.50 (0) 10.14 (2) 7.97 (2) 8.93 (5) 10.05 (6)

In order to have complete information about the portfolio, please refer to the Scott Burns Seven Value Portfolio: ETF allocation and returns page.

Performances as of Sep 30, 2024

Historical returns and stats of Scott Burns Seven Value Portfolio, after implementing different rebalancing strategies.

SCOTT BURNS SEVEN VALUE PORTFOLIO PERFORMANCES
Period: January 1985 - September 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 9.50 (0) 12.11 0.78 -45.29 0.21
Yearly Rebalancing 9.67 (40) 11.00 0.88 -41.22 0.23
Half Yearly Rebalancing 9.58 (80) 10.98 0.87 -41.38 0.23
Quarterly Rebalancing 9.68 (159) 11.04 0.88 -41.45 0.23
5% Tolerance per asset 9.85 (14) 11.13 0.89 -41.38 0.24
10% Tolerance per asset 10.05 (6) 10.78 0.93 -39.90 0.25
(*) Since Jan 1985 (~40 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Sep 30, 2024

Historical Drawdowns of Scott Burns Seven Value Portfolio, after implementing different rebalancing strategies.

SCOTT BURNS SEVEN VALUE PORTFOLIO DRAWDOWNS
Period: January 1985 - September 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-45.29
Nov 2007 - Apr 2011
-41.22
Nov 2007 - Jan 2011
-41.38
Nov 2007 - Dec 2010
-41.45
Nov 2007 - Dec 2010
-41.38
Nov 2007 - Dec 2010
-39.90
Nov 2007 - Feb 2011
-22.90
Jan 2020 - Dec 2020
-20.44
Jan 2020 - Dec 2020
-20.44
Jan 2020 - Dec 2020
-20.44
Jan 2020 - Nov 2020
-20.32
Jan 2020 - Nov 2020
-19.46
Jan 2020 - Nov 2020
-21.91
Sep 2000 - Dec 2003
-17.34
Sep 1987 - Dec 1988
-16.09
Sep 1987 - Oct 1988
-15.64
Feb 2001 - Sep 2003
-17.54
Sep 1987 - Jan 1989
-16.42
Sep 1987 - Dec 1988
-16.77
Sep 1987 - Nov 1988
-15.04
Feb 2001 - Sep 2003
-15.91
Feb 2001 - Oct 2003
-15.64
Sep 1987 - Oct 1988
-14.49
Feb 2001 - Aug 2003
-15.22
Apr 2022 - Dec 2023
-16.75
Apr 2022 - Jul 2023
-14.49
Apr 2022 - Jul 2023
-15.04
Apr 2022 - Jul 2023
-15.34
Apr 2022 - Dec 2023
-14.44
Apr 2022 - Jul 2023
-14.78
May 1998 - Mar 1999
5 Worst Drawdowns - Average
-24.72 -21.71 -21.77 -21.70 -21.63 -21.16
10 Worst Drawdowns - Average
-18.89 -16.41 -16.44 -16.38 -16.29 -15.61

For a deeper insight, please refer to the Scott Burns Seven Value Portfolio: ETF allocation and returns page.