Data Source: from January 1992 to July 2022
Consolidated Returns as of 31 July 2022

Managing the Burton Malkiel Mid-Twenties Portfolio with a yearly rebalancing, you would have obtained a 8.64% 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 Jul 31, 2022

Implementing different rebalancing strategies, the Burton Malkiel Mid-Twenties Portfolio guaranteed the following returns.

According to the available data source, let's assume we built the portfolio on January 1992.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
BURTON MALKIEL MID-TWENTIES PORTFOLIO RETURNS
Period: January 1992 - July 2022
Swipe left to see all data
 
Return (%) and number of rebalances as of Jul 31, 2022
Rebalancing Strategy 1Y 5Y(*) 10Y(*) 30Y(*) (**)Since
Inception
Yearly Rebalancing -10.35 (1) 6.69 (5) 8.30 (10) 8.64 (30) 8.50 (31)
Half Yearly Rebalancing -10.44 (2) 6.63 (10) 8.26 (20) 8.45 (60) 8.31 (62)
Quarterly Rebalancing -10.57 (4) 6.68 (20) 8.22 (40) 8.42 (120) 8.28 (123)
5% Tolerance per asset -10.46 (0) 6.73 (2) 8.26 (3) 8.39 (11) 8.26 (11)
10% Tolerance per asset -10.25 (0) 6.85 (0) 8.59 (1) 8.50 (3) 8.36 (3)
(*) Returns over 1 year are annualized
(**) Since Jan 1992 (~31 yrs) | Annualized Returns

In order to have complete information about the portfolio, please refer to the Burton Malkiel Mid-Twenties Portfolio: ETF allocation and returns page.

Performances as of Jul 31, 2022

Historical returns and stats of Burton Malkiel Mid-Twenties Portfolio, after implementing different rebalancing strategies.

BURTON MALKIEL MID-TWENTIES PORTFOLIO PERFORMANCES
Period: January 1992 - July 2022
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy (*)Return (%) StDev(%) Ret/StDev MaxDD(%) Ret/MaxDD
Yearly Rebalancing 8.50 (31) 13.51 0.63 -49.50 0.17
Half Yearly Rebalancing 8.31 (62) 13.53 0.61 -49.74 0.17
Quarterly Rebalancing 8.28 (123) 13.56 0.61 -49.68 0.17
5% Tolerance per asset 8.26 (11) 13.44 0.61 -49.06 0.17
10% Tolerance per asset 8.36 (3) 13.39 0.62 -48.37 0.17
(*) Since Jan 1992 (~31 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Jul 31, 2022

Historical Drawdowns of Burton Malkiel Mid-Twenties Portfolio, after implementing different rebalancing strategies.

BURTON MALKIEL MID-TWENTIES PORTFOLIO DRAWDOWNS
Period: January 1992 - July 2022
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-49.50
Nov 2007 - Apr 2011
-49.74
Nov 2007 - Apr 2011
-49.68
Nov 2007 - Apr 2011
-49.06
Nov 2007 - Sep 2012
-48.37
Nov 2007 - Sep 2012
-24.51
Sep 2000 - Oct 2003
-25.42
Sep 2000 - Nov 2003
-25.32
Sep 2000 - Nov 2003
-26.84
Apr 2000 - Dec 2003
-26.85
Apr 2000 - Dec 2003
-19.79
Jan 2020 - Aug 2020
-19.79
Jan 2020 - Aug 2020
-19.79
Jan 2020 - Aug 2020
-19.82
Jan 2020 - Aug 2020
-20.11
Jan 2020 - Aug 2020
-18.97
May 1998 - Mar 1999
-19.26
May 1998 - Mar 1999
-19.36
May 1998 - Mar 1999
-18.81
May 1998 - Mar 1999
-19.00
May 1998 - Mar 1999
-18.36
Jan 2022 - In progress
-18.36
Jan 2022 - In progress
-18.38
Jan 2022 - In progress
-18.51
Jan 2022 - In progress
-19.00
Jan 2022 - In progress
5 Worst Drawdowns - Average
-26.23 -26.51 -26.51 -26.61 -26.67
10 Worst Drawdowns - Average
-18.70 -18.83 -18.84 -17.66 -17.74

For a deeper insight, please refer to the Burton Malkiel Mid-Twenties Portfolio: ETF allocation and returns page.

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