US Stocks/Bonds 60/40 To CAD Portfolio: Rebalancing Strategy

Data Source: from August 1953 to October 2024
Consolidated Returns as of 31 October 2024

Managing the US Stocks/Bonds 60/40 To CAD Portfolio with a yearly rebalancing, you would have obtained a 10.29% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 8.42%.

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 Oct 31, 2024

Implementing different rebalancing strategies, the US Stocks/Bonds 60/40 To CAD Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on August 1953.

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)
US STOCKS/BONDS 60/40 TO CAD PORTFOLIO RETURNS
Period: August 1953 - October 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Oct 31, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~71Y)
No Rebalancing 37.52 (0) 15.05 (0) 14.03 (0) 10.29 (0) 10.86 (0)
Yearly Rebalancing 27.12 (1) 9.75 (5) 10.19 (10) 8.55 (30) 9.75 (71)
Half Yearly Rebalancing 26.77 (2) 9.73 (10) 10.19 (20) 8.42 (60) 9.70 (142)
Quarterly Rebalancing 26.67 (4) 9.83 (20) 10.28 (40) 8.53 (120) 9.72 (285)
5% Tolerance per asset 27.16 (0) 9.73 (2) 10.23 (4) 8.61 (23) 9.74 (41)
10% Tolerance per asset 28.36 (0) 10.21 (1) 10.52 (2) 8.77 (7) 9.86 (13)

In order to have complete information about the portfolio, please refer to the US Stocks/Bonds 60/40 To CAD Portfolio: ETF allocation and returns page.

Performances as of Oct 31, 2024

Historical returns and stats of US Stocks/Bonds 60/40 To CAD Portfolio, after implementing different rebalancing strategies.

US STOCKS/BONDS 60/40 TO CAD PORTFOLIO PERFORMANCES
Period: August 1953 - October 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 10.86 (0) 12.46 0.87 -44.71 0.24
Yearly Rebalancing 9.75 (71) 9.16 1.06 -28.04 0.35
Half Yearly Rebalancing 9.70 (142) 9.13 1.06 -28.85 0.34
Quarterly Rebalancing 9.72 (285) 9.14 1.06 -28.86 0.34
5% Tolerance per asset 9.74 (41) 9.20 1.06 -28.75 0.34
10% Tolerance per asset 9.86 (13) 9.29 1.06 -28.69 0.34
(*) Since Aug 1953 (~71 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Oct 31, 2024

Historical Drawdowns of US Stocks/Bonds 60/40 To CAD Portfolio, after implementing different rebalancing strategies.

US STOCKS/BONDS 60/40 TO CAD PORTFOLIO DRAWDOWNS
Period: August 1953 - October 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-44.71
Sep 2000 - Mar 2013
-28.04
Jan 1973 - Jun 1975
-28.85
Jan 1973 - Jun 1975
-28.86
Jan 1973 - Jun 1975
-28.75
Jan 1973 - Jun 1975
-28.69
Jan 1973 - Jun 1975
-40.60
Jan 1973 - Nov 1976
-19.80
Feb 2007 - Nov 2011
-20.67
Feb 2007 - Nov 2011
-20.98
Feb 2007 - Nov 2011
-20.68
Feb 2007 - Nov 2011
-20.74
Feb 2007 - Nov 2011
-27.42
Sep 1987 - Jul 1989
-19.79
Sep 1987 - Jul 1989
-20.13
Sep 2000 - Jan 2007
-19.29
Dec 1968 - Mar 1971
-19.55
Sep 2000 - Jan 2007
-19.90
Dec 1968 - Mar 1971
-26.84
Dec 1968 - Dec 1971
-19.29
Sep 2000 - Jan 2007
-18.98
Dec 1968 - Mar 1971
-19.21
Sep 2000 - Jan 2007
-18.98
Dec 1968 - Mar 1971
-18.72
Sep 1987 - Jul 1989
-20.09
Jan 2022 - Jul 2023
-18.95
Dec 1968 - Mar 1971
-18.15
Sep 1987 - May 1989
-17.47
Sep 1987 - May 1989
-18.74
Sep 1987 - Jul 1989
-18.10
Sep 2000 - Jan 2007
5 Worst Drawdowns - Average
-31.93 -21.17 -21.36 -21.16 -21.34 -21.23
10 Worst Drawdowns - Average
-22.95 -15.86 -15.96 -15.89 -16.12 -16.07

For a deeper insight, please refer to the US Stocks/Bonds 60/40 To CAD Portfolio: ETF allocation and returns page.