Consolidated Returns as of 31 March 2024
Managing the JL Collins Simple Path to Wealth Portfolio with a yearly rebalancing, you would have obtained a 9.27% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 9.25%.
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 Mar 31, 2024
Implementing different rebalancing strategies, the JL Collins Simple Path to Wealth Portfolio guaranteed the following returns.
Portfolio returns are calculated in USD, assuming:
- No fees or capital gain taxes
- the reinvestment of dividends, if existing
| Return (%) and number of rebalances as of Mar 31, 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~153Y) |
|||||
| Yearly Rebalancing | 21.87 | (1) | 10.81 | (5) | 9.64 | (10) | 9.27 | (30) | 8.31 | (154) |
| Half Yearly Rebalancing | 21.73 | (2) | 10.82 | (10) | 9.64 | (20) | 9.17 | (60) | 8.31 | (307) |
| Quarterly Rebalancing | 21.65 | (4) | 10.91 | (20) | 9.71 | (40) | 9.25 | (120) | 8.32 | (613) |
| 5% Tolerance per asset | 22.39 | (0) | 10.91 | (1) | 9.76 | (3) | 9.33 | (13) | 8.33 | (56) |
| 10% Tolerance per asset | 22.59 | (0) | 11.31 | (1) | 9.96 | (1) | 9.46 | (4) | 8.47 | (19) |
In order to have complete information about the portfolio, please refer to the JL Collins Simple Path to Wealth Portfolio: ETF allocation and returns page.
Performances as of Mar 31, 2024
Historical returns and stats of JL Collins Simple Path to Wealth Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| Yearly Rebalancing | 8.31 | (154) | 12.51 | 0.66 | -72.36 | 0.11 |
| Half Yearly Rebalancing | 8.31 | (307) | 12.63 | 0.66 | -72.32 | 0.11 |
| Quarterly Rebalancing | 8.32 | (613) | 12.67 | 0.66 | -72.64 | 0.11 |
| 5% Tolerance per asset | 8.33 | (56) | 12.73 | 0.65 | -72.90 | 0.11 |
| 10% Tolerance per asset | 8.47 | (19) | 12.93 | 0.65 | -71.11 | 0.12 |
Drawdowns as of Mar 31, 2024
Historical Drawdowns of JL Collins Simple Path to Wealth Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
|||
|---|---|---|---|---|
| Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-72.36
Sep 1929 - Jan 1937
|
-72.32
Sep 1929 - Oct 1936
|
-72.64
Sep 1929 - Oct 1936
|
-72.90
Sep 1929 - Oct 1936
|
-71.11
Sep 1929 - Jul 1936
|
|
-39.03
Mar 1937 - Mar 1943
|
-39.39
Mar 1937 - Mar 1943
|
-39.64
Mar 1937 - Mar 1943
|
-39.58
Mar 1937 - Mar 1943
|
-41.81
Nov 2007 - Apr 2011
|
|
-38.53
Nov 2007 - Dec 2010
|
-39.11
Nov 2007 - Jan 2011
|
-39.49
Nov 2007 - Jan 2011
|
-39.40
Nov 2007 - Jan 2011
|
-38.82
Mar 1937 - Mar 1943
|
|
-34.54
Jan 1973 - Jan 1976
|
-35.15
Jan 1973 - Jan 1976
|
-35.16
Jan 1973 - Jan 1976
|
-35.73
Jan 1973 - Mar 1976
|
-36.71
Jan 1973 - Jun 1976
|
|
-30.50
Sep 2000 - Dec 2004
|
-31.23
Sep 2000 - Dec 2004
|
-30.79
Sep 2000 - Dec 2004
|
-30.88
Sep 2000 - Dec 2004
|
-30.21
Sep 2000 - Dec 2004
|
| 5 Worst Drawdowns - Average | ||||
| -42.99 | -43.44 | -43.54 | -43.70 | -43.73 |
| 10 Worst Drawdowns - Average | ||||
| -33.10 | -33.26 | -33.32 | -33.54 | -33.81 |
For a deeper insight, please refer to the JL Collins Simple Path to Wealth Portfolio: ETF allocation and returns page.
