Data Source: from March 1987 to August 2022
Consolidated Returns as of 31 August 2022

Managing the Betterment Robo Advisor 100 Portfolio with a yearly rebalancing, you would have obtained a 8.60% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 8.39%.

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 Aug 31, 2022

Implementing different rebalancing strategies, the Betterment Robo Advisor 100 Portfolio guaranteed the following returns.

According to the available data source, let's assume we built the portfolio on March 1987.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
BETTERMENT ROBO ADVISOR 100 PORTFOLIO RETURNS
Period: March 1987 - August 2022
Swipe left to see all data
 
Return (%) and number of rebalances as of Aug 31, 2022
Rebalancing Strategy 1Y 5Y(*) 10Y(*) 30Y(*) (**)Since
Inception
Yearly Rebalancing -14.75 (1) 6.29 (5) 8.87 (10) 8.60 (30) 8.95 (35)
Half Yearly Rebalancing -14.83 (2) 6.29 (10) 8.84 (20) 8.48 (60) 8.76 (71)
Quarterly Rebalancing -14.92 (4) 6.30 (20) 8.80 (40) 8.39 (120) 8.64 (142)
5% Tolerance per asset -14.71 (0) 6.41 (1) 8.95 (2) 8.44 (7) 8.69 (11)
10% Tolerance per asset -14.58 (0) 6.71 (1) 9.12 (1) 8.74 (3) 8.93 (4)
(*) Returns over 1 year are annualized
(**) Since Mar 1987 (~36 yrs) | Annualized Returns

In order to have complete information about the portfolio, please refer to the Betterment Robo Advisor 100 Portfolio: ETF allocation and returns page.

Performances as of Aug 31, 2022

Historical returns and stats of Betterment Robo Advisor 100 Portfolio, after implementing different rebalancing strategies.

BETTERMENT ROBO ADVISOR 100 PORTFOLIO PERFORMANCES
Period: March 1987 - August 2022
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy (*)Return (%) StDev(%) Ret/StDev MaxDD(%) Ret/MaxDD
Yearly Rebalancing 8.95 (35) 15.74 0.57 -54.55 0.16
Half Yearly Rebalancing 8.76 (71) 15.78 0.56 -54.50 0.16
Quarterly Rebalancing 8.64 (142) 15.77 0.55 -54.47 0.16
5% Tolerance per asset 8.69 (11) 15.71 0.55 -54.55 0.16
10% Tolerance per asset 8.93 (4) 15.80 0.57 -54.95 0.16
(*) Since Mar 1987 (~36 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Aug 31, 2022

Historical Drawdowns of Betterment Robo Advisor 100 Portfolio, after implementing different rebalancing strategies.

BETTERMENT ROBO ADVISOR 100 PORTFOLIO DRAWDOWNS
Period: March 1987 - August 2022
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-54.55
Nov 2007 - Jan 2013
-54.50
Nov 2007 - Jan 2013
-54.47
Nov 2007 - Jan 2013
-54.55
Nov 2007 - Jan 2013
-54.95
Nov 2007 - Mar 2013
-37.03
Apr 2000 - Oct 2004
-37.20
Apr 2000 - Oct 2004
-37.41
Apr 2000 - Oct 2004
-38.45
Apr 2000 - Nov 2004
-38.16
Apr 2000 - Nov 2004
-25.33
Sep 1987 - Jan 1989
-26.80
Sep 1987 - Jan 1989
-26.66
Sep 1987 - Jan 1989
-26.60
Sep 1987 - Feb 1989
-25.33
Sep 1987 - Jan 1989
-24.14
Jan 2020 - Nov 2020
-24.14
Jan 2020 - Nov 2020
-24.14
Jan 2020 - Nov 2020
-24.03
Jan 2020 - Nov 2020
-24.11
Jan 2020 - Nov 2020
-20.93
Jan 1990 - Feb 1991
-21.03
Jan 1990 - Mar 1991
-20.92
Jan 1990 - Feb 1991
-20.38
May 1998 - Mar 1999
-21.52
Jan 1990 - Apr 1991
5 Worst Drawdowns - Average
-32.39 -32.73 -32.72 -32.80 -32.81
10 Worst Drawdowns - Average
-23.65 -23.85 -23.85 -23.90 -23.70

For a deeper insight, please refer to the Betterment Robo Advisor 100 Portfolio: ETF allocation and returns page.

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