US Stocks To CAD Portfolio: Rebalancing Strategy

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

Managing the US Stocks To CAD Portfolio with a yearly rebalancing, you would have obtained a 10.74% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 10.74%.

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.

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 Dec 31, 2024

Implementing different rebalancing strategies, the US Stocks 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 TO CAD PORTFOLIO RETURNS
Period: August 1953 - December 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Dec 31, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~71Y)
No Rebalancing 33.76 (0) 15.85 (0) 14.29 (0) 10.74 (0) 11.71 (0)
Yearly Rebalancing 33.76 (1) 15.85 (5) 14.29 (10) 10.74 (30) 11.71 (71)
Half Yearly Rebalancing 33.76 (2) 15.85 (10) 14.29 (20) 10.74 (60) 11.71 (142)
Quarterly Rebalancing 33.76 (4) 15.85 (20) 14.29 (40) 10.74 (120) 11.71 (285)
5% Tolerance per asset 33.76 (0) 15.85 (0) 14.29 (0) 10.74 (0) 11.71 (0)
10% Tolerance per asset 33.76 (0) 15.85 (0) 14.29 (0) 10.74 (0) 11.71 (0)

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

Performances as of Dec 31, 2024

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

US STOCKS TO CAD PORTFOLIO PERFORMANCES
Period: August 1953 - December 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 11.71 (0) 13.88 0.84 -48.04 0.24
Yearly Rebalancing 11.71 (71) 13.88 0.84 -48.04 0.24
Half Yearly Rebalancing 11.71 (142) 13.88 0.84 -48.04 0.24
Quarterly Rebalancing 11.71 (285) 13.88 0.84 -48.04 0.24
5% Tolerance per asset 11.71 (0) 13.88 0.84 -48.04 0.24
10% Tolerance per asset 11.71 (0) 13.88 0.84 -48.04 0.24
(*) Since Aug 1953 (~71 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Dec 31, 2024

Historical Drawdowns of US Stocks To CAD Portfolio, after implementing different rebalancing strategies.

US STOCKS TO CAD PORTFOLIO DRAWDOWNS
Period: August 1953 - December 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-48.04
Sep 2000 - Apr 2013
-48.04
Sep 2000 - Apr 2013
-48.04
Sep 2000 - Apr 2013
-48.04
Sep 2000 - Apr 2013
-48.04
Sep 2000 - Apr 2013
-48.04
Sep 2000 - Apr 2013
-46.42
Jan 1973 - Dec 1976
-46.42
Jan 1973 - Dec 1976
-46.42
Jan 1973 - Dec 1976
-46.42
Jan 1973 - Dec 1976
-46.42
Jan 1973 - Dec 1976
-46.42
Jan 1973 - Dec 1976
-30.23
Dec 1968 - Jan 1972
-30.23
Dec 1968 - Jan 1972
-30.23
Dec 1968 - Jan 1972
-30.23
Dec 1968 - Jan 1972
-30.23
Dec 1968 - Jan 1972
-30.23
Dec 1968 - Jan 1972
-29.87
Sep 1987 - Aug 1989
-29.87
Sep 1987 - Aug 1989
-29.87
Sep 1987 - Aug 1989
-29.87
Sep 1987 - Aug 1989
-29.87
Sep 1987 - Aug 1989
-29.87
Sep 1987 - Aug 1989
-20.33
Jan 2022 - Jul 2023
-20.33
Jan 2022 - Jul 2023
-20.33
Jan 2022 - Jul 2023
-20.33
Jan 2022 - Jul 2023
-20.33
Jan 2022 - Jul 2023
-20.33
Jan 2022 - Jul 2023
5 Worst Drawdowns - Average
-34.98 -34.98 -34.98 -34.98 -34.98 -34.98
10 Worst Drawdowns - Average
-25.46 -25.46 -25.46 -25.46 -25.46 -25.46

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