Consolidated Returns as of 30 November 2024
Managing the Stocks/Bonds 20/80 Portfolio with a yearly rebalancing, you would have obtained a 10.89% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 5.95%.
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 Stocks/Bonds 20/80 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 (~154Y) |
|||||
| No Rebalancing | 34.30 | (0) | 15.06 | (0) | 12.75 | (0) | 10.89 | (0) | 8.09 | (0) |
| Yearly Rebalancing | 12.30 | (1) | 3.11 | (5) | 3.86 | (10) | 6.03 | (30) | 5.70 | (154) |
| Half Yearly Rebalancing | 12.05 | (2) | 3.08 | (10) | 3.84 | (20) | 5.95 | (60) | 5.70 | (308) |
| Quarterly Rebalancing | 11.98 | (4) | 3.13 | (20) | 3.88 | (40) | 6.01 | (120) | 5.72 | (616) |
| 5% Tolerance per asset | 12.47 | (0) | 3.21 | (2) | 3.95 | (3) | 6.06 | (10) | 5.70 | (44) |
| 10% Tolerance per asset | 13.22 | (0) | 3.57 | (1) | 4.19 | (2) | 6.04 | (3) | 5.72 | (14) |
In order to have complete information about the portfolio, please refer to the Stocks/Bonds 20/80 Portfolio: ETF allocation and returns page.
Performances as of Nov 30, 2024
Historical returns and stats of Stocks/Bonds 20/80 Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 8.09 | (0) | 12.15 | 0.67 | -64.02 | 0.13 |
| Yearly Rebalancing | 5.70 | (154) | 5.12 | 1.11 | -18.94 | 0.30 |
| Half Yearly Rebalancing | 5.70 | (308) | 5.17 | 1.10 | -19.45 | 0.29 |
| Quarterly Rebalancing | 5.72 | (616) | 5.19 | 1.10 | -20.32 | 0.28 |
| 5% Tolerance per asset | 5.70 | (44) | 5.19 | 1.10 | -20.12 | 0.28 |
| 10% Tolerance per asset | 5.72 | (14) | 5.20 | 1.10 | -19.10 | 0.30 |
Drawdowns as of Nov 30, 2024
Historical Drawdowns of Stocks/Bonds 20/80 Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-64.02
Sep 1929 - May 1943
|
-18.94
Jun 1930 - May 1933
|
-19.45
Jun 1930 - Apr 1933
|
-20.32
Jun 1930 - Apr 1933
|
-20.12
Sep 1929 - Apr 1933
|
-19.10
Sep 1929 - May 1933
|
|
-50.02
Nov 2007 - Feb 2012
|
-16.57
Jan 2022 - Sep 2024
|
-16.57
Jan 2022 - Sep 2024
|
-16.56
Jan 2022 - Sep 2024
|
-17.00
Jan 2022 - Sep 2024
|
-16.75
Jan 2022 - Aug 2024
|
|
-44.03
Jan 1973 - Dec 1976
|
-10.14
Mar 1937 - Oct 1938
|
-10.49
Mar 1937 - Oct 1938
|
-10.73
Mar 1937 - Oct 1938
|
-10.30
Mar 1937 - Oct 1938
|
-10.63
Mar 1937 - May 1939
|
|
-43.18
Sep 2000 - Mar 2006
|
-9.55
Jul 1895 - Jan 1897
|
-9.50
Jul 1895 - Jan 1897
|
-9.44
Jul 1895 - Jan 1897
|
-9.33
Jul 1895 - Jan 1897
|
-10.06
Nov 1973 - Feb 1975
|
|
-29.01
Dec 1968 - Mar 1971
|
-8.42
May 2008 - Jul 2009
|
-8.82
May 2008 - Jul 2009
|
-9.11
May 2008 - Jul 2009
|
-8.77
Sep 1968 - Nov 1970
|
-9.95
Dec 1968 - Nov 1970
|
| 5 Worst Drawdowns - Average | |||||
| -46.05 | -12.73 | -12.97 | -13.23 | -13.10 | -13.30 |
| 10 Worst Drawdowns - Average | |||||
| -34.28 | -10.19 | -10.37 | -10.52 | -10.45 | -10.62 |
For a deeper insight, please refer to the Stocks/Bonds 20/80 Portfolio: ETF allocation and returns page.
