Consolidated Returns as of 30 November 2024
Managing the Stocks/Bonds 40/60 Portfolio with a yearly rebalancing, you would have obtained a 10.94% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 7.35%.
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.
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 40/60 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 | 34.40 | (0) | 15.12 | (0) | 12.81 | (0) | 10.94 | (0) | 8.58 | (0) |
| Yearly Rebalancing | 17.83 | (1) | 6.21 | (5) | 6.18 | (10) | 7.47 | (30) | 6.78 | (154) |
| Half Yearly Rebalancing | 17.46 | (2) | 6.17 | (10) | 6.16 | (20) | 7.35 | (60) | 6.79 | (308) |
| Quarterly Rebalancing | 17.35 | (4) | 6.26 | (20) | 6.22 | (40) | 7.44 | (120) | 6.80 | (616) |
| 5% Tolerance per asset | 17.75 | (1) | 6.20 | (3) | 6.21 | (5) | 7.56 | (23) | 6.83 | (96) |
| 10% Tolerance per asset | 18.52 | (1) | 6.59 | (2) | 6.47 | (3) | 7.79 | (9) | 6.86 | (29) |
In order to have complete information about the portfolio, please refer to the Stocks/Bonds 40/60 Portfolio: ETF allocation and returns page.
Performances as of Nov 30, 2024
Historical returns and stats of Stocks/Bonds 40/60 Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 8.58 | (0) | 13.87 | 0.62 | -75.74 | 0.11 |
| Yearly Rebalancing | 6.78 | (154) | 7.38 | 0.92 | -43.68 | 0.16 |
| Half Yearly Rebalancing | 6.79 | (308) | 7.49 | 0.91 | -43.47 | 0.16 |
| Quarterly Rebalancing | 6.80 | (616) | 7.52 | 0.90 | -44.04 | 0.15 |
| 5% Tolerance per asset | 6.83 | (96) | 7.52 | 0.91 | -45.40 | 0.15 |
| 10% Tolerance per asset | 6.86 | (29) | 7.57 | 0.91 | -42.45 | 0.16 |
Drawdowns as of Nov 30, 2024
Historical Drawdowns of Stocks/Bonds 40/60 Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-75.74
Sep 1929 - Jun 1944
|
-43.68
Sep 1929 - Sep 1935
|
-43.47
Sep 1929 - Jun 1935
|
-44.04
Sep 1929 - Apr 1935
|
-45.40
Sep 1929 - Jul 1935
|
-42.45
Sep 1929 - Jun 1935
|
|
-50.53
Nov 2007 - Feb 2012
|
-21.33
Mar 1937 - Jul 1941
|
-21.83
Mar 1937 - Jul 1941
|
-22.17
Mar 1937 - Dec 1939
|
-21.47
Mar 1937 - Dec 1939
|
-21.95
Mar 1937 - Dec 1939
|
|
-45.16
Jan 1973 - Dec 1976
|
-19.17
Nov 2007 - Nov 2009
|
-19.95
Nov 2007 - Feb 2010
|
-20.51
Nov 2007 - Mar 2010
|
-20.63
Nov 2007 - Mar 2010
|
-19.12
Jan 2022 - Mar 2024
|
|
-43.65
Sep 2000 - Mar 2006
|
-18.63
Jan 2022 - Jun 2024
|
-18.63
Jan 2022 - Jun 2024
|
-18.62
Jan 2022 - Jun 2024
|
-19.12
Jan 2022 - Jun 2024
|
-19.01
Jan 1973 - Dec 1975
|
|
-29.66
Dec 1968 - Mar 1971
|
-17.04
Jan 1973 - May 1975
|
-17.91
Jan 1973 - May 1975
|
-17.92
Jan 1973 - May 1975
|
-17.90
Jan 1973 - May 1975
|
-18.88
Nov 2007 - Nov 2009
|
| 5 Worst Drawdowns - Average | |||||
| -48.95 | -23.97 | -24.36 | -24.65 | -24.91 | -24.28 |
| 10 Worst Drawdowns - Average | |||||
| -36.24 | -17.93 | -18.07 | -18.23 | -18.45 | -18.55 |
For a deeper insight, please refer to the Stocks/Bonds 40/60 Portfolio: ETF allocation and returns page.
