Gyroscopic Investing Canadian Desert Portfolio: Rebalancing Strategy

Data Source: from April 1994 to September 2024
Consolidated Returns as of 30 September 2024

Managing the Gyroscopic Investing Canadian Desert Portfolio with a yearly rebalancing, you would have obtained a 6.03% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 6.05%.

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 Gyroscopic Investing Canadian Desert Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on April 1994.

Portfolio returns are calculated in CAD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
  • the adjustment for actual currency exchange rates (simulation derived from original US returns)
GYROSCOPIC INVESTING CANADIAN DESERT PORTFOLIO RETURNS
Period: April 1994 - September 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Sep 30, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~31Y)
No Rebalancing 21.16 (0) 6.61 (0) 5.23 (0) 6.03 (0) 5.94 (0)
Yearly Rebalancing 18.43 (1) 5.36 (5) 4.61 (10) 6.08 (30) 5.99 (30)
Half Yearly Rebalancing 18.26 (2) 5.36 (10) 4.60 (20) 6.05 (60) 5.96 (61)
Quarterly Rebalancing 18.24 (4) 5.50 (20) 4.67 (40) 6.10 (120) 6.01 (122)
5% Tolerance per asset 18.68 (1) 5.38 (2) 4.55 (3) 6.14 (15) 6.05 (15)
10% Tolerance per asset 19.15 (0) 5.68 (1) 4.73 (1) 6.38 (6) 6.29 (6)

In order to have complete information about the portfolio, please refer to the Gyroscopic Investing Canadian Desert Portfolio: ETF allocation and returns page.

Performances as of Sep 30, 2024

Historical returns and stats of Gyroscopic Investing Canadian Desert Portfolio, after implementing different rebalancing strategies.

GYROSCOPIC INVESTING CANADIAN DESERT PORTFOLIO PERFORMANCES
Period: April 1994 - 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 5.94 (0) 6.07 0.98 -11.48 0.52
Yearly Rebalancing 5.99 (30) 5.38 1.11 -9.45 0.63
Half Yearly Rebalancing 5.96 (61) 5.33 1.12 -9.13 0.65
Quarterly Rebalancing 6.01 (122) 5.36 1.12 -9.05 0.66
5% Tolerance per asset 6.05 (15) 5.38 1.12 -8.88 0.68
10% Tolerance per asset 6.29 (6) 5.58 1.13 -10.27 0.61
(*) Since Apr 1994 (~31 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Sep 30, 2024

Historical Drawdowns of Gyroscopic Investing Canadian Desert Portfolio, after implementing different rebalancing strategies.

GYROSCOPIC INVESTING CANADIAN DESERT PORTFOLIO DRAWDOWNS
Period: April 1994 - September 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-11.48
Jun 2008 - Apr 2010
-9.45
May 1998 - Apr 1999
-9.13
May 1998 - Apr 1999
-9.05
May 1998 - Jan 1999
-8.88
May 1998 - Jan 1999
-10.27
May 1998 - Apr 1999
-10.63
Sep 2000 - Aug 2003
-8.19
Sep 2000 - May 2003
-7.72
Jun 2008 - Jul 2009
-8.54
Jun 2008 - Sep 2009
-8.48
Jun 2008 - Aug 2009
-8.48
Jun 2008 - May 2009
-10.27
May 1998 - Apr 1999
-7.86
Jun 2008 - Jul 2009
-7.52
Jan 2022 - Apr 2023
-7.36
Jan 2022 - Apr 2023
-7.60
Jan 2022 - Apr 2023
-7.60
Jan 2022 - Apr 2023
-8.88
Apr 2022 - Apr 2023
-7.52
Jan 2022 - Apr 2023
-7.39
Sep 2000 - May 2003
-7.33
Sep 2000 - Dec 2002
-7.10
Sep 2000 - Dec 2002
-6.86
Sep 2000 - Nov 2002
-8.52
Feb 2020 - Jul 2020
-5.11
Feb 2020 - May 2020
-5.11
Feb 2020 - May 2020
-5.11
Feb 2020 - May 2020
-5.38
Feb 2020 - May 2020
-6.80
Feb 2020 - Jun 2020
5 Worst Drawdowns - Average
-9.96 -7.63 -7.37 -7.48 -7.49 -8.00
10 Worst Drawdowns - Average
-7.15 -5.79 -5.67 -5.73 -5.77 -6.04

For a deeper insight, please refer to the Gyroscopic Investing Canadian Desert Portfolio: ETF allocation and returns page.