Dedalo Invest Dedalo Three Portfolio: Rebalancing Strategy

Data Source: from January 1970 to April 2024
Consolidated Returns as of 30 April 2024

Managing the Dedalo Invest Dedalo Three Portfolio with a yearly rebalancing, you would have obtained a 9.19% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 9.17%.

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 Apr 30, 2024

Implementing different rebalancing strategies, the Dedalo Invest Dedalo Three Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1970.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
DEDALO INVEST DEDALO THREE PORTFOLIO RETURNS
Period: January 1970 - April 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Apr 30, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~54Y)
Yearly Rebalancing 20.35 (1) 11.42 (5) 10.70 (10) 9.19 (30) 10.04 (55)
Half Yearly Rebalancing 20.35 (2) 11.41 (10) 10.70 (20) 9.18 (60) 10.02 (109)
Quarterly Rebalancing 20.35 (4) 11.41 (20) 10.70 (40) 9.17 (120) 10.01 (218)
5% Tolerance per asset 20.56 (0) 11.50 (0) 10.78 (1) 9.24 (3) 10.05 (5)
10% Tolerance per asset 20.82 (0) 11.64 (0) 10.92 (0) 9.34 (1) 10.08 (1)

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

Performances as of Apr 30, 2024

Historical returns and stats of Dedalo Invest Dedalo Three Portfolio, after implementing different rebalancing strategies.

DEDALO INVEST DEDALO THREE PORTFOLIO PERFORMANCES
Period: January 1970 - April 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
Yearly Rebalancing 10.04 (55) 15.57 0.64 -52.73 0.19
Half Yearly Rebalancing 10.02 (109) 15.57 0.64 -52.74 0.19
Quarterly Rebalancing 10.01 (218) 15.57 0.64 -52.74 0.19
5% Tolerance per asset 10.05 (5) 15.58 0.64 -52.84 0.19
10% Tolerance per asset 10.08 (1) 15.60 0.65 -52.83 0.19
(*) Since Jan 1970 (~54 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Apr 30, 2024

Historical Drawdowns of Dedalo Invest Dedalo Three Portfolio, after implementing different rebalancing strategies.

DEDALO INVEST DEDALO THREE PORTFOLIO DRAWDOWNS
Period: January 1970 - April 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-52.73
Nov 2007 - Dec 2012
-52.74
Nov 2007 - Dec 2012
-52.74
Nov 2007 - Dec 2012
-52.84
Nov 2007 - Jan 2013
-52.83
Nov 2007 - Jan 2013
-45.07
Apr 2000 - Apr 2006
-45.09
Apr 2000 - Apr 2006
-45.06
Apr 2000 - Apr 2006
-44.90
Apr 2000 - Apr 2006
-44.80
Jan 1973 - Dec 1976
-44.80
Jan 1973 - Dec 1976
-44.80
Jan 1973 - Dec 1976
-44.80
Jan 1973 - Dec 1976
-44.80
Jan 1973 - Dec 1976
-44.67
Apr 2000 - Mar 2006
-28.32
Sep 1987 - Apr 1989
-28.36
Sep 1987 - Apr 1989
-28.37
Sep 1987 - Apr 1989
-28.33
Sep 1987 - May 1989
-28.16
Sep 1987 - May 1989
-25.03
Jan 2022 - Dec 2023
-25.02
Jan 2022 - Dec 2023
-25.02
Jan 2022 - Dec 2023
-25.00
Jan 2022 - Dec 2023
-24.96
Jan 2022 - Dec 2023
5 Worst Drawdowns - Average
-39.19 -39.20 -39.20 -39.17 -39.08
10 Worst Drawdowns - Average
-28.95 -28.96 -28.96 -28.95 -28.98

For a deeper insight, please refer to the Dedalo Invest Dedalo Three Portfolio: ETF allocation and returns page.