Aim Ways Shield Strategy To EUR Portfolio: Rebalancing Strategy

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

Managing the Aim Ways Shield Strategy To EUR Portfolio with a yearly rebalancing, you would have obtained a 10.49% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 8.88%.

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 Aim Ways Shield Strategy To EUR 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 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)
AIM WAYS SHIELD STRATEGY TO EUR 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 21.49 (0) 15.52 (0) 14.71 (0) 10.49 (0) 9.32 (0)
Yearly Rebalancing 17.57 (1) 9.78 (5) 10.06 (10) 9.18 (30) 8.23 (40)
Half Yearly Rebalancing 17.57 (2) 9.59 (10) 10.05 (20) 8.88 (60) 8.04 (80)
Quarterly Rebalancing 17.42 (4) 9.50 (20) 10.03 (40) 8.98 (120) 8.16 (159)
5% Tolerance per asset 18.41 (1) 9.76 (2) 10.20 (4) 9.24 (19) 8.29 (22)
10% Tolerance per asset 19.09 (1) 10.31 (1) 10.87 (2) 9.72 (6) 8.70 (7)

In order to have complete information about the portfolio, please refer to the Aim Ways Shield Strategy To EUR Portfolio: ETF allocation and returns page.

Performances as of Aug 31, 2024

Historical returns and stats of Aim Ways Shield Strategy To EUR Portfolio, after implementing different rebalancing strategies.

AIM WAYS SHIELD STRATEGY TO EUR 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 9.32 (0) 15.38 0.61 -59.56 0.16
Yearly Rebalancing 8.23 (40) 11.28 0.73 -30.73 0.27
Half Yearly Rebalancing 8.04 (80) 11.17 0.72 -31.97 0.25
Quarterly Rebalancing 8.16 (159) 11.20 0.73 -30.18 0.27
5% Tolerance per asset 8.29 (22) 11.27 0.74 -30.89 0.27
10% Tolerance per asset 8.70 (7) 11.78 0.74 -28.15 0.31
(*) Since Jan 1985 (~40 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Aug 31, 2024

Historical Drawdowns of Aim Ways Shield Strategy To EUR Portfolio, after implementing different rebalancing strategies.

AIM WAYS SHIELD STRATEGY TO EUR 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%
-59.56
Sep 2000 - Dec 2014
-30.73
Sep 2000 - Feb 2010
-31.97
Sep 2000 - Feb 2010
-30.18
Sep 2000 - Feb 2010
-30.89
Sep 2000 - Feb 2010
-28.15
Sep 2000 - Dec 2009
-26.06
Sep 1989 - Apr 1991
-24.80
Sep 1989 - May 1991
-24.14
Sep 1989 - Apr 1991
-23.95
Sep 1989 - Apr 1991
-24.59
Sep 1989 - May 1991
-26.06
Sep 1989 - Apr 1991
-23.67
Mar 1985 - Apr 1989
-23.14
Mar 1985 - Apr 1989
-22.03
Mar 1985 - Mar 1989
-21.08
Mar 1985 - Jan 1989
-20.93
Mar 1985 - Mar 1989
-23.67
Mar 1985 - Apr 1989
-20.76
Jan 2022 - Nov 2023
-13.31
Feb 1994 - Aug 1995
-13.22
Mar 1992 - Nov 1992
-13.28
Feb 1994 - Aug 1995
-13.35
Feb 1994 - Aug 1995
-13.37
Feb 1994 - Aug 1995
-14.10
Apr 2000 - Aug 2000
-13.17
Mar 1992 - Nov 1992
-13.21
Feb 1994 - Aug 1995
-13.22
Mar 1992 - Nov 1992
-13.34
Mar 1992 - Nov 1992
-13.17
Mar 1992 - Nov 1992
5 Worst Drawdowns - Average
-28.83 -21.03 -20.91 -20.34 -20.62 -20.88
10 Worst Drawdowns - Average
-20.80 -14.80 -14.67 -14.37 -14.68 -15.02

For a deeper insight, please refer to the Aim Ways Shield Strategy To EUR Portfolio: ETF allocation and returns page.