Consolidated Returns as of 31 August 2024
Managing the US Stocks/Bonds 20/80 To CAD Portfolio with a yearly rebalancing, you would have obtained a 9.11% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 5.74%.
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 Aug 31, 2024
Implementing different rebalancing strategies, the US Stocks/Bonds 20/80 To CAD Portfolio guaranteed the following returns.
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)
| Return (%) and number of rebalances as of Aug 31, 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~71Y) |
|||||
| No Rebalancing | 23.31 | (0) | 12.98 | (0) | 12.70 | (0) | 9.11 | (0) | 9.24 | (0) |
| Yearly Rebalancing | 10.46 | (1) | 3.25 | (5) | 6.00 | (10) | 5.82 | (30) | 7.34 | (71) |
| Half Yearly Rebalancing | 10.38 | (2) | 3.23 | (10) | 6.00 | (20) | 5.74 | (60) | 7.31 | (142) |
| Quarterly Rebalancing | 10.32 | (4) | 3.29 | (20) | 6.05 | (40) | 5.80 | (120) | 7.31 | (284) |
| 5% Tolerance per asset | 10.42 | (0) | 3.34 | (2) | 6.09 | (3) | 5.84 | (10) | 7.34 | (21) |
| 10% Tolerance per asset | 11.53 | (1) | 3.74 | (2) | 6.36 | (2) | 6.14 | (6) | 7.47 | (9) |
In order to have complete information about the portfolio, please refer to the US Stocks/Bonds 20/80 To CAD Portfolio: ETF allocation and returns page.
Performances as of Aug 31, 2024
Historical returns and stats of US Stocks/Bonds 20/80 To CAD Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 9.24 | (0) | 9.38 | 0.99 | -31.33 | 0.29 |
| Yearly Rebalancing | 7.34 | (71) | 6.92 | 1.06 | -19.04 | 0.39 |
| Half Yearly Rebalancing | 7.31 | (142) | 6.90 | 1.06 | -19.51 | 0.37 |
| Quarterly Rebalancing | 7.31 | (284) | 6.89 | 1.06 | -19.23 | 0.38 |
| 5% Tolerance per asset | 7.34 | (21) | 6.90 | 1.06 | -18.80 | 0.39 |
| 10% Tolerance per asset | 7.47 | (9) | 6.97 | 1.07 | -22.08 | 0.34 |
Drawdowns as of Aug 31, 2024
Historical Drawdowns of US Stocks/Bonds 20/80 To CAD Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-31.33
Sep 2000 - Jan 2013
|
-19.04
Mar 2002 - Dec 2008
|
-19.51
Mar 2002 - Dec 2008
|
-19.23
Mar 2002 - Dec 2008
|
-18.80
Jan 2003 - Dec 2008
|
-22.08
Jan 2003 - Dec 2008
|
|
-24.24
Jan 1973 - Jun 1975
|
-11.46
Dec 2021 - Feb 2024
|
-11.55
Dec 2021 - Feb 2024
|
-11.55
Dec 2021 - Feb 2024
|
-11.95
Dec 2021 - Feb 2024
|
-12.46
Oct 1973 - Apr 1975
|
|
-19.33
Sep 1987 - Jul 1989
|
-10.39
Oct 1973 - Feb 1975
|
-10.92
Oct 1973 - Feb 1975
|
-10.83
Oct 1973 - Feb 1975
|
-10.19
Oct 1973 - Feb 1975
|
-12.09
Dec 2021 - Feb 2024
|
|
-19.02
Jan 2022 - Aug 2023
|
-9.97
Apr 2009 - Aug 2010
|
-9.97
Apr 2009 - Sep 2011
|
-9.76
Apr 2009 - Aug 2010
|
-10.04
Apr 2009 - Sep 2011
|
-9.97
Apr 2009 - Sep 2011
|
|
-17.30
Dec 1968 - Mar 1971
|
-8.25
Sep 1968 - Nov 1970
|
-8.28
Sep 1968 - Nov 1970
|
-8.44
Sep 1968 - Nov 1970
|
-8.46
Sep 1968 - Nov 1970
|
-9.95
Dec 1968 - Dec 1970
|
| 5 Worst Drawdowns - Average | |||||
| -22.24 | -11.82 | -12.05 | -11.96 | -11.89 | -13.31 |
| 10 Worst Drawdowns - Average | |||||
| -16.01 | -9.53 | -9.55 | -9.51 | -9.35 | -10.09 |
For a deeper insight, please refer to the US Stocks/Bonds 20/80 To CAD Portfolio: ETF allocation and returns page.
