Data Source: from June 1991 to July 2022
Consolidated Returns as of 31 July 2022

Managing the Charles Schwab Conservative Income Portfolio with a yearly rebalancing, you would have obtained a 4.75% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 4.74%.

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 Jul 31, 2022

Implementing different rebalancing strategies, the Charles Schwab Conservative Income Portfolio guaranteed the following returns.

According to the available data source, let's assume we built the portfolio on June 1991.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
CHARLES SCHWAB CONSERVATIVE INCOME PORTFOLIO RETURNS
Period: June 1991 - 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 -5.35 (1) 2.12 (5) 1.94 (10) 4.75 (30) 5.03 (31)
Half Yearly Rebalancing -5.36 (2) 2.12 (10) 1.93 (20) 4.73 (60) 5.01 (63)
Quarterly Rebalancing -5.43 (4) 2.13 (20) 1.93 (40) 4.74 (120) 5.02 (125)
5% Tolerance per asset -5.77 (0) 2.17 (0) 1.98 (1) 4.76 (3) 5.04 (3)
10% Tolerance per asset -5.89 (0) 2.42 (0) 2.25 (0) 4.91 (1) 5.19 (1)
(*) Returns over 1 year are annualized
(**) Since Jun 1991 (~31 yrs) | Annualized Returns

In order to have complete information about the portfolio, please refer to the Charles Schwab Conservative Income Portfolio: ETF allocation and returns page.

Performances as of Jul 31, 2022

Historical returns and stats of Charles Schwab Conservative Income Portfolio, after implementing different rebalancing strategies.

CHARLES SCHWAB CONSERVATIVE INCOME PORTFOLIO PERFORMANCES
Period: June 1991 - July 2022
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy (*)Return (%) StDev(%) Ret/StDev MaxDD(%) Ret/MaxDD
Yearly Rebalancing 5.03 (31) 3.42 1.47 -8.22 0.61
Half Yearly Rebalancing 5.01 (63) 3.42 1.46 -8.22 0.61
Quarterly Rebalancing 5.02 (125) 3.44 1.46 -8.28 0.61
5% Tolerance per asset 5.04 (3) 3.57 1.41 -9.26 0.54
10% Tolerance per asset 5.19 (1) 4.03 1.29 -10.18 0.51
(*) Since Jun 1991 (~31 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Jul 31, 2022

Historical Drawdowns of Charles Schwab Conservative Income Portfolio, after implementing different rebalancing strategies.

CHARLES SCHWAB CONSERVATIVE INCOME PORTFOLIO DRAWDOWNS
Period: June 1991 - July 2022
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-8.22
Jan 2022 - In progress
-8.22
Jan 2022 - In progress
-8.28
Jan 2022 - In progress
-9.26
Jan 2022 - In progress
-10.18
May 2008 - Sep 2009
-7.01
May 2008 - Jul 2009
-7.05
May 2008 - Jul 2009
-7.07
May 2008 - Jul 2009
-7.20
May 2008 - Jul 2009
-10.12
Jan 2022 - In progress
-4.80
Feb 1994 - Mar 1995
-4.80
Feb 1994 - Mar 1995
-4.83
Feb 1994 - Mar 1995
-5.22
Feb 1994 - Apr 1995
-5.22
Feb 1994 - Apr 1995
-4.32
May 2013 - May 2014
-4.30
May 2013 - May 2014
-4.29
May 2013 - May 2014
-4.32
May 2013 - May 2014
-4.80
May 2013 - May 2014
-2.79
Apr 2004 - Aug 2004
-2.79
Apr 2004 - Aug 2004
-2.71
Apr 2004 - Aug 2004
-3.23
Mar 2020 - May 2020
-4.03
Feb 2020 - Jun 2020
5 Worst Drawdowns - Average
-5.43 -5.43 -5.43 -5.85 -6.87
10 Worst Drawdowns - Average
-3.87 -3.86 -3.87 -4.20 -4.87

For a deeper insight, please refer to the Charles Schwab Conservative Income Portfolio: ETF allocation and returns page.

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