Canada Stocks Portfolio: Rebalancing Strategy

Data Source: from January 1985 to November 2024
Consolidated Returns as of 30 November 2024

Managing the Canada Stocks Portfolio with a yearly rebalancing, you would have obtained a 8.35% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 8.35%.

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 Nov 30, 2024

Implementing different rebalancing strategies, the Canada Stocks Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1985.

Portfolio returns are calculated in CAD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
CANADA STOCKS PORTFOLIO RETURNS
Period: January 1985 - November 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Nov 30, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~40Y)
No Rebalancing 31.18 (0) 12.10 (0) 8.77 (0) 8.35 (0) 7.44 (0)
Yearly Rebalancing 31.18 (1) 12.10 (5) 8.77 (10) 8.35 (30) 7.44 (40)
Half Yearly Rebalancing 31.18 (2) 12.10 (10) 8.77 (20) 8.35 (60) 7.44 (80)
Quarterly Rebalancing 31.18 (4) 12.10 (20) 8.77 (40) 8.35 (120) 7.44 (160)
5% Tolerance per asset 31.18 (0) 12.10 (0) 8.77 (0) 8.35 (0) 7.44 (0)
10% Tolerance per asset 31.18 (0) 12.10 (0) 8.77 (0) 8.35 (0) 7.44 (0)

In order to have complete information about the portfolio, please refer to the Canada Stocks Portfolio: ETF allocation and returns page.

Performances as of Nov 30, 2024

Historical returns and stats of Canada Stocks Portfolio, after implementing different rebalancing strategies.

CANADA STOCKS PORTFOLIO PERFORMANCES
Period: January 1985 - November 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 7.44 (0) 14.54 0.51 -45.40 0.16
Yearly Rebalancing 7.44 (40) 14.54 0.51 -45.40 0.16
Half Yearly Rebalancing 7.44 (80) 14.54 0.51 -45.40 0.16
Quarterly Rebalancing 7.44 (160) 14.54 0.51 -45.40 0.16
5% Tolerance per asset 7.44 (0) 14.54 0.51 -45.40 0.16
10% Tolerance per asset 7.44 (0) 14.54 0.51 -45.40 0.16
(*) Since Jan 1985 (~40 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Nov 30, 2024

Historical Drawdowns of Canada Stocks Portfolio, after implementing different rebalancing strategies.

CANADA STOCKS PORTFOLIO DRAWDOWNS
Period: January 1985 - November 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-45.40
Sep 2000 - Sep 2005
-45.40
Sep 2000 - Sep 2005
-45.40
Sep 2000 - Sep 2005
-45.40
Sep 2000 - Sep 2005
-45.40
Sep 2000 - Sep 2005
-45.40
Sep 2000 - Sep 2005
-43.58
Jun 2008 - Feb 2011
-43.58
Jun 2008 - Feb 2011
-43.58
Jun 2008 - Feb 2011
-43.58
Jun 2008 - Feb 2011
-43.58
Jun 2008 - Feb 2011
-43.58
Jun 2008 - Feb 2011
-27.84
May 1998 - Dec 1999
-27.84
May 1998 - Dec 1999
-27.84
May 1998 - Dec 1999
-27.84
May 1998 - Dec 1999
-27.84
May 1998 - Dec 1999
-27.84
May 1998 - Dec 1999
-26.10
Aug 1987 - Aug 1993
-26.10
Aug 1987 - Aug 1993
-26.10
Aug 1987 - Aug 1993
-26.10
Aug 1987 - Aug 1993
-26.10
Aug 1987 - Aug 1993
-26.10
Aug 1987 - Aug 1993
-23.04
Feb 2020 - Nov 2020
-23.04
Feb 2020 - Nov 2020
-23.04
Feb 2020 - Nov 2020
-23.04
Feb 2020 - Nov 2020
-23.04
Feb 2020 - Nov 2020
-23.04
Feb 2020 - Nov 2020
5 Worst Drawdowns - Average
-33.19 -33.19 -33.19 -33.19 -33.19 -33.19
10 Worst Drawdowns - Average
-23.83 -23.83 -23.83 -23.83 -23.83 -23.83

For a deeper insight, please refer to the Canada Stocks Portfolio: ETF allocation and returns page.