Consolidated Returns as of 31 August 2024
Managing the US Stocks/Bonds 80/20 To CAD Portfolio with a yearly rebalancing, you would have obtained a 10.23% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 9.33%.
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 80/20 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 | 25.14 | (0) | 14.81 | (0) | 14.15 | (0) | 10.23 | (0) | 11.25 | (0) |
| Yearly Rebalancing | 21.58 | (1) | 12.11 | (5) | 12.27 | (10) | 9.42 | (30) | 10.72 | (71) |
| Half Yearly Rebalancing | 21.50 | (2) | 12.09 | (10) | 12.27 | (20) | 9.33 | (60) | 10.69 | (142) |
| Quarterly Rebalancing | 21.44 | (4) | 12.17 | (20) | 12.34 | (40) | 9.40 | (120) | 10.70 | (284) |
| 5% Tolerance per asset | 21.90 | (0) | 12.19 | (1) | 12.38 | (2) | 9.41 | (8) | 10.68 | (15) |
| 10% Tolerance per asset | 22.91 | (1) | 12.82 | (1) | 12.73 | (2) | 9.69 | (4) | 10.85 | (6) |
In order to have complete information about the portfolio, please refer to the US Stocks/Bonds 80/20 To CAD Portfolio: ETF allocation and returns page.
Performances as of Aug 31, 2024
Historical returns and stats of US Stocks/Bonds 80/20 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 | 11.25 | (0) | 13.28 | 0.85 | -46.76 | 0.24 |
| Yearly Rebalancing | 10.72 | (71) | 11.36 | 0.94 | -37.54 | 0.29 |
| Half Yearly Rebalancing | 10.69 | (142) | 11.34 | 0.94 | -38.05 | 0.28 |
| Quarterly Rebalancing | 10.70 | (284) | 11.36 | 0.94 | -38.06 | 0.28 |
| 5% Tolerance per asset | 10.68 | (15) | 11.49 | 0.93 | -38.35 | 0.28 |
| 10% Tolerance per asset | 10.85 | (6) | 11.83 | 0.92 | -41.31 | 0.26 |
Drawdowns as of Aug 31, 2024
Historical Drawdowns of US Stocks/Bonds 80/20 To CAD Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-46.76
Sep 2000 - Mar 2013
|
-37.54
Jan 1973 - Mar 1976
|
-38.05
Jan 1973 - Mar 1976
|
-38.06
Jan 1973 - Mar 1976
|
-38.35
Jan 1973 - Jun 1976
|
-41.31
Jan 1973 - Dec 1976
|
|
-44.07
Jan 1973 - Dec 1976
|
-33.84
Sep 2000 - Dec 2012
|
-35.01
Sep 2000 - Jan 2013
|
-34.78
Sep 2000 - Jan 2013
|
-35.73
Sep 2000 - Jan 2013
|
-35.24
Sep 2000 - Jan 2013
|
|
-28.91
Sep 1987 - Aug 1989
|
-25.12
Sep 1987 - Jul 1989
|
-24.70
Dec 1968 - Apr 1971
|
-24.90
Dec 1968 - Apr 1971
|
-25.22
Dec 1968 - Dec 1971
|
-27.25
Dec 1968 - Dec 1971
|
|
-28.86
Dec 1968 - Jan 1972
|
-24.68
Dec 1968 - Apr 1971
|
-24.12
Sep 1987 - Jul 1989
|
-23.67
Sep 1987 - Jul 1989
|
-24.36
Sep 1987 - Jul 1989
|
-25.16
Sep 1987 - Jul 1989
|
|
-20.24
Jan 2022 - Jul 2023
|
-18.00
Jan 2022 - Aug 2023
|
-18.00
Jan 2022 - Aug 2023
|
-17.99
Jan 2022 - Aug 2023
|
-18.09
Jan 2022 - Nov 2023
|
-18.94
Jan 2022 - Aug 2023
|
| 5 Worst Drawdowns - Average | |||||
| -33.77 | -27.84 | -27.97 | -27.88 | -28.35 | -29.58 |
| 10 Worst Drawdowns - Average | |||||
| -24.44 | -20.07 | -20.15 | -20.12 | -20.43 | -21.34 |
For a deeper insight, please refer to the US Stocks/Bonds 80/20 To CAD Portfolio: ETF allocation and returns page.
