Consolidated Returns as of 30 November 2024
Managing the US Stocks/Bonds 40/60 To CAD Portfolio with a yearly rebalancing, you would have obtained a 10.32% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 7.36%.
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 US Stocks/Bonds 40/60 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 Nov 30, 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~71Y) |
|||||
| No Rebalancing | 37.53 | (0) | 15.16 | (0) | 14.01 | (0) | 10.32 | (0) | 10.36 | (0) |
| Yearly Rebalancing | 21.18 | (1) | 7.19 | (5) | 8.19 | (10) | 7.48 | (30) | 8.67 | (71) |
| Half Yearly Rebalancing | 20.77 | (2) | 7.15 | (10) | 8.17 | (20) | 7.36 | (60) | 8.62 | (142) |
| Quarterly Rebalancing | 20.65 | (4) | 7.24 | (20) | 8.25 | (40) | 7.45 | (120) | 8.63 | (285) |
| 5% Tolerance per asset | 21.09 | (1) | 7.15 | (3) | 8.20 | (5) | 7.56 | (23) | 8.68 | (42) |
| 10% Tolerance per asset | 21.98 | (1) | 7.55 | (2) | 8.46 | (3) | 7.75 | (9) | 8.71 | (13) |
In order to have complete information about the portfolio, please refer to the US Stocks/Bonds 40/60 To CAD Portfolio: ETF allocation and returns page.
Performances as of Nov 30, 2024
Historical returns and stats of US Stocks/Bonds 40/60 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 | 10.36 | (0) | 11.31 | 0.92 | -40.89 | 0.25 |
| Yearly Rebalancing | 8.67 | (71) | 7.56 | 1.15 | -17.91 | 0.48 |
| Half Yearly Rebalancing | 8.62 | (142) | 7.52 | 1.15 | -18.79 | 0.46 |
| Quarterly Rebalancing | 8.63 | (285) | 7.52 | 1.15 | -18.78 | 0.46 |
| 5% Tolerance per asset | 8.68 | (42) | 7.58 | 1.15 | -18.76 | 0.46 |
| 10% Tolerance per asset | 8.71 | (13) | 7.70 | 1.13 | -20.94 | 0.42 |
Drawdowns as of Nov 30, 2024
Historical Drawdowns of US Stocks/Bonds 40/60 To CAD Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-40.89
Sep 2000 - Feb 2013
|
-17.91
Jan 1973 - May 1975
|
-18.79
Oct 1973 - May 1975
|
-18.78
Jan 1973 - May 1975
|
-18.76
Jan 1973 - May 1975
|
-20.94
Jan 1973 - May 1975
|
|
-34.96
Jan 1973 - Jun 1976
|
-14.58
Apr 2002 - Oct 2010
|
-15.34
Apr 2002 - Jan 2011
|
-14.89
Apr 2002 - Jan 2011
|
-14.62
Apr 2002 - Jan 2011
|
-15.38
Dec 1968 - Mar 1971
|
|
-24.85
Sep 1987 - Jul 1989
|
-13.74
Sep 1987 - May 1989
|
-13.33
Jan 2022 - Dec 2023
|
-13.39
Dec 1968 - Jan 1971
|
-13.87
Jan 2022 - Dec 2023
|
-14.42
Feb 2007 - Nov 2010
|
|
-23.56
Dec 1968 - Apr 1971
|
-13.33
Jan 2022 - Dec 2023
|
-13.08
Dec 1968 - Jan 1971
|
-13.32
Jan 2022 - Dec 2023
|
-13.21
Dec 1968 - Jan 1971
|
-13.87
Jan 2022 - Dec 2023
|
|
-19.80
Jan 2022 - Jul 2023
|
-13.05
Dec 1968 - Jan 1971
|
-11.97
Sep 1987 - May 1989
|
-11.28
Sep 1987 - May 1989
|
-12.59
Sep 1987 - May 1989
|
-13.81
Sep 1987 - May 1989
|
| 5 Worst Drawdowns - Average | |||||
| -28.81 | -14.52 | -14.50 | -14.33 | -14.61 | -15.69 |
| 10 Worst Drawdowns - Average | |||||
| -20.52 | -10.84 | -10.84 | -10.74 | -10.88 | -11.89 |
For a deeper insight, please refer to the US Stocks/Bonds 40/60 To CAD Portfolio: ETF allocation and returns page.
