US Stocks Equal Weight Portfolio: Rebalancing Strategy

Data Source: from May 2003 to January 2024
Consolidated Returns as of 31 January 2024

Managing the US Stocks Equal Weight Portfolio with a yearly rebalancing, you would have obtained a 10.36% compound annual return in the last 10 Years.

With a quarterly rebalancing, over the same period, the return would have been 10.36%.

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 Jan 31, 2024

Implementing different rebalancing strategies, the US Stocks Equal Weight Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on May 2003.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
US STOCKS EQUAL WEIGHT PORTFOLIO RETURNS
Period: May 2003 - January 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Jan 31, 2024
Rebalancing Strategy 1Y 5Y 10Y MAX
(~21Y)
Yearly Rebalancing 4.94 (1) 11.27 (5) 10.36 (10) 10.87 (21)
Half Yearly Rebalancing 4.94 (2) 11.27 (10) 10.36 (20) 10.87 (42)
Quarterly Rebalancing 4.94 (4) 11.27 (20) 10.36 (40) 10.87 (83)
5% Tolerance per asset 4.94 (0) 11.27 (0) 10.36 (0) 10.87 (0)
10% Tolerance per asset 4.94 (0) 11.27 (0) 10.36 (0) 10.87 (0)

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

Performances as of Jan 31, 2024

Historical returns and stats of US Stocks Equal Weight Portfolio, after implementing different rebalancing strategies.

US STOCKS EQUAL WEIGHT PORTFOLIO PERFORMANCES
Period: May 2003 - January 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
Yearly Rebalancing 10.87 (21) 17.02 0.64 -55.58 0.20
Half Yearly Rebalancing 10.87 (42) 17.02 0.64 -55.58 0.20
Quarterly Rebalancing 10.87 (83) 17.02 0.64 -55.58 0.20
5% Tolerance per asset 10.87 (0) 17.02 0.64 -55.58 0.20
10% Tolerance per asset 10.87 (0) 17.02 0.64 -55.58 0.20
(*) Since May 2003 (~21 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Jan 31, 2024

Historical Drawdowns of US Stocks Equal Weight Portfolio, after implementing different rebalancing strategies.

US STOCKS EQUAL WEIGHT PORTFOLIO DRAWDOWNS
Period: May 2003 - January 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-55.58
Jun 2007 - Feb 2011
-55.58
Jun 2007 - Feb 2011
-55.58
Jun 2007 - Feb 2011
-55.58
Jun 2007 - Feb 2011
-55.58
Jun 2007 - Feb 2011
-26.65
Jan 2020 - Nov 2020
-26.65
Jan 2020 - Nov 2020
-26.65
Jan 2020 - Nov 2020
-26.65
Jan 2020 - Nov 2020
-26.65
Jan 2020 - Nov 2020
-20.69
Jan 2022 - Dec 2023
-20.69
Jan 2022 - Dec 2023
-20.69
Jan 2022 - Dec 2023
-20.69
Jan 2022 - Dec 2023
-20.69
Jan 2022 - Dec 2023
-19.88
May 2011 - Mar 2012
-19.88
May 2011 - Mar 2012
-19.88
May 2011 - Mar 2012
-19.88
May 2011 - Mar 2012
-19.88
May 2011 - Mar 2012
-13.90
Oct 2018 - Apr 2019
-13.90
Oct 2018 - Apr 2019
-13.90
Oct 2018 - Apr 2019
-13.90
Oct 2018 - Apr 2019
-13.90
Oct 2018 - Apr 2019
5 Worst Drawdowns - Average
-27.34 -27.34 -27.34 -27.34 -27.34
10 Worst Drawdowns - Average
-17.27 -17.27 -17.27 -17.27 -17.27

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