Consolidated Returns as of 31 October 2024
Managing the Vanguard Balanced Portfolio with a yearly rebalancing, you would have obtained a 7.78% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 7.21%.
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 Oct 31, 2024
Implementing different rebalancing strategies, the Vanguard Balanced 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)
- the currency hedging (simulation taking into account the interest rate differentials of the countries). It is also assumed that hedged instruments have an additional expense ratio of 0.25% (yearly), compared to the US original instrument.
| Return (%) and number of rebalances as of Oct 31, 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~37Y) |
|||||
| No Rebalancing | 31.27 | (0) | 10.71 | (0) | 9.54 | (0) | 7.78 | (0) | 8.60 | (0) |
| Yearly Rebalancing | 23.47 | (1) | 7.17 | (5) | 7.10 | (10) | 7.28 | (30) | 7.97 | (37) |
| Half Yearly Rebalancing | 23.30 | (2) | 7.16 | (10) | 7.09 | (20) | 7.21 | (60) | 7.88 | (74) |
| Quarterly Rebalancing | 23.19 | (4) | 7.20 | (20) | 7.10 | (40) | 7.21 | (120) | 7.87 | (148) |
| 5% Tolerance per asset | 23.88 | (1) | 7.40 | (2) | 7.22 | (4) | 7.30 | (12) | 8.02 | (13) |
| 10% Tolerance per asset | 25.85 | (0) | 7.85 | (1) | 7.50 | (1) | 7.16 | (2) | 8.02 | (3) |
In order to have complete information about the portfolio, please refer to the Vanguard Balanced Portfolio: ETF allocation and returns page.
Performances as of Oct 31, 2024
Historical returns and stats of Vanguard Balanced Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 8.60 | (0) | 9.39 | 0.92 | -27.30 | 0.32 |
| Yearly Rebalancing | 7.97 | (37) | 7.99 | 1.00 | -23.42 | 0.34 |
| Half Yearly Rebalancing | 7.88 | (74) | 7.96 | 0.99 | -23.49 | 0.34 |
| Quarterly Rebalancing | 7.87 | (148) | 8.00 | 0.98 | -24.10 | 0.33 |
| 5% Tolerance per asset | 8.02 | (13) | 8.16 | 0.98 | -23.65 | 0.34 |
| 10% Tolerance per asset | 8.02 | (3) | 8.11 | 0.99 | -22.72 | 0.35 |
Drawdowns as of Oct 31, 2024
Historical Drawdowns of Vanguard Balanced Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-27.30
Nov 2007 - Oct 2010
|
-23.42
Jun 2007 - Sep 2010
|
-23.49
Jun 2007 - Sep 2010
|
-24.10
Jun 2007 - Sep 2010
|
-23.65
Jun 2007 - Sep 2010
|
-22.72
Jun 2008 - Sep 2010
|
|
-26.26
Sep 2000 - Jul 2005
|
-20.53
Sep 2000 - Dec 2004
|
-20.72
Sep 2000 - Dec 2004
|
-20.12
Sep 2000 - Dec 2004
|
-20.27
Sep 2000 - Dec 2004
|
-21.38
Sep 2000 - Feb 2005
|
|
-16.90
Jan 2022 - Dec 2023
|
-15.27
Jan 2022 - Dec 2023
|
-15.20
Jan 2022 - Dec 2023
|
-15.15
Jan 2022 - Dec 2023
|
-15.37
Jan 2022 - Dec 2023
|
-15.50
Jan 2022 - Dec 2023
|
|
-13.77
Feb 2020 - Jul 2020
|
-11.62
Feb 2020 - Jul 2020
|
-11.62
Feb 2020 - Jul 2020
|
-11.62
Feb 2020 - Jul 2020
|
-11.88
Feb 2020 - Jul 2020
|
-11.68
Feb 2020 - Jul 2020
|
|
-11.40
Aug 1990 - Feb 1991
|
-10.60
Jan 1990 - Feb 1991
|
-10.84
Jan 1990 - Feb 1991
|
-10.82
Jan 1990 - Feb 1991
|
-11.40
Aug 1990 - Feb 1991
|
-11.40
Aug 1990 - Feb 1991
|
| 5 Worst Drawdowns - Average | |||||
| -19.13 | -16.29 | -16.37 | -16.36 | -16.51 | -16.53 |
| 10 Worst Drawdowns - Average | |||||
| -13.92 | -11.65 | -11.66 | -11.65 | -12.12 | -12.00 |
For a deeper insight, please refer to the Vanguard Balanced Portfolio: ETF allocation and returns page.
