Cathie Wood Ark Tech Portfolio: Rebalancing Strategy

Data Source: from November 2014 to September 2024
Consolidated Returns as of 30 September 2024

Managing the Cathie Wood Ark Tech Portfolio with a yearly rebalancing, you would have obtained a 8.41% compound annual return in the last 5 Years.

With a quarterly rebalancing, over the same period, the return would have been 7.83%.

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 Sep 30, 2024

Implementing different rebalancing strategies, the Cathie Wood Ark Tech Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on November 2014.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
CATHIE WOOD ARK TECH PORTFOLIO RETURNS
Period: November 2014 - September 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Sep 30, 2024
Rebalancing Strategy 1Y 5Y MAX
(~10Y)
No Rebalancing 27.03 (0) 8.41 (0) 12.06 (0)
Yearly Rebalancing 21.55 (1) 8.28 (5) 11.87 (10)
Half Yearly Rebalancing 20.86 (2) 7.83 (10) 11.60 (20)
Quarterly Rebalancing 20.36 (4) 7.57 (20) 11.47 (39)
5% Tolerance per asset 20.16 (1) 7.29 (2) 11.36 (4)
10% Tolerance per asset 21.25 (1) 7.94 (2) 11.81 (2)

In order to have complete information about the portfolio, please refer to the Cathie Wood Ark Tech Portfolio: ETF allocation and returns page.

Performances as of Sep 30, 2024

Historical returns and stats of Cathie Wood Ark Tech Portfolio, after implementing different rebalancing strategies.

CATHIE WOOD ARK TECH PORTFOLIO PERFORMANCES
Period: November 2014 - September 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 12.06 (0) 30.99 0.39 -71.13 0.17
Yearly Rebalancing 11.87 (10) 30.92 0.38 -69.47 0.17
Half Yearly Rebalancing 11.60 (20) 30.93 0.38 -69.75 0.17
Quarterly Rebalancing 11.47 (39) 30.97 0.37 -70.02 0.16
5% Tolerance per asset 11.36 (4) 30.80 0.37 -70.02 0.16
10% Tolerance per asset 11.81 (2) 30.67 0.39 -69.90 0.17
(*) Since Nov 2014 (~10 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Sep 30, 2024

Historical Drawdowns of Cathie Wood Ark Tech Portfolio, after implementing different rebalancing strategies.

CATHIE WOOD ARK TECH PORTFOLIO DRAWDOWNS
Period: November 2014 - September 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-71.13
Feb 2021 - In progress
-69.47
Feb 2021 - In progress
-69.75
Feb 2021 - In progress
-70.02
Feb 2021 - In progress
-70.02
Feb 2021 - In progress
-69.90
Feb 2021 - In progress
-21.86
Sep 2018 - Nov 2019
-22.61
Sep 2018 - Nov 2019
-22.51
Sep 2018 - Nov 2019
-22.32
Sep 2018 - Nov 2019
-22.35
Sep 2018 - Nov 2019
-21.86
Sep 2018 - Nov 2019
-21.43
Jun 2015 - Sep 2016
-21.33
Jun 2015 - Sep 2016
-21.36
Jun 2015 - Sep 2016
-21.36
Jun 2015 - Sep 2016
-21.43
Jun 2015 - Sep 2016
-21.43
Jun 2015 - Sep 2016
-14.01
Mar 2020 - Apr 2020
-13.20
Mar 2020 - Apr 2020
-13.20
Mar 2020 - Apr 2020
-13.20
Mar 2020 - Apr 2020
-13.24
Mar 2020 - Apr 2020
-13.09
Mar 2020 - Apr 2020
-8.82
Oct 2016 - Jan 2017
-8.95
Oct 2016 - Jan 2017
-9.27
Oct 2016 - Jan 2017
-9.23
Oct 2016 - Jan 2017
-8.82
Oct 2016 - Jan 2017
-8.82
Oct 2016 - Jan 2017
5 Worst Drawdowns - Average
-27.45 -27.11 -27.22 -27.22 -27.17 -27.02
10 Worst Drawdowns - Average
-14.82 not enough data not enough data not enough data -14.67 -14.56

For a deeper insight, please refer to the Cathie Wood Ark Tech Portfolio: ETF allocation and returns page.