Frank Armstrong Ideal Index Portfolio: Rebalancing Strategy

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

Managing the Frank Armstrong Ideal Index Portfolio with a yearly rebalancing, you would have obtained a 6.74% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 6.74%.

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 Frank Armstrong Ideal Index 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
FRANK ARMSTRONG IDEAL INDEX 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 7.77 (1) 5.07 (5) 5.16 (10) 6.74 (30) 9.13 (55)
Half Yearly Rebalancing 7.72 (2) 5.17 (10) 5.20 (20) 6.66 (60) 9.07 (109)
Quarterly Rebalancing 7.85 (4) 5.41 (20) 5.32 (40) 6.74 (120) 9.07 (218)
5% Tolerance per asset 7.97 (0) 5.05 (1) 5.20 (2) 6.84 (14) 9.22 (30)
10% Tolerance per asset 8.67 (0) 5.17 (0) 5.41 (1) 7.10 (6) 9.20 (8)

In order to have complete information about the portfolio, please refer to the Frank Armstrong Ideal Index Portfolio: ETF allocation and returns page.

Performances as of Apr 30, 2024

Historical returns and stats of Frank Armstrong Ideal Index Portfolio, after implementing different rebalancing strategies.

FRANK ARMSTRONG IDEAL INDEX 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 9.13 (55) 10.87 0.84 -40.11 0.23
Half Yearly Rebalancing 9.07 (109) 10.90 0.83 -40.74 0.22
Quarterly Rebalancing 9.07 (218) 10.96 0.83 -41.06 0.22
5% Tolerance per asset 9.22 (30) 11.06 0.83 -40.71 0.23
10% Tolerance per asset 9.20 (8) 11.18 0.82 -42.21 0.22
(*) Since Jan 1970 (~54 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Apr 30, 2024

Historical Drawdowns of Frank Armstrong Ideal Index Portfolio, after implementing different rebalancing strategies.

FRANK ARMSTRONG IDEAL INDEX PORTFOLIO DRAWDOWNS
Period: January 1970 - April 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-40.11
Nov 2007 - Feb 2011
-40.74
Nov 2007 - Feb 2011
-41.06
Nov 2007 - Feb 2011
-40.71
Nov 2007 - Jan 2011
-42.21
Nov 2007 - Feb 2011
-27.37
Jan 1973 - Jun 1975
-27.94
Jan 1973 - Jun 1975
-27.84
Jan 1973 - Jun 1975
-27.57
Jan 1973 - Jun 1975
-26.80
Jan 1973 - Jan 1976
-18.25
Jan 2022 - Mar 2024
-18.46
Jan 2022 - Mar 2024
-18.54
Jan 2022 - Mar 2024
-18.94
Jan 2022 - Mar 2024
-19.52
Jan 2022 - Mar 2024
-17.16
Jan 2020 - Nov 2020
-17.16
Jan 2020 - Nov 2020
-17.16
Jan 2020 - Nov 2020
-18.34
Jan 2020 - Nov 2020
-17.75
Jan 2020 - Nov 2020
-16.33
Feb 2001 - Oct 2003
-16.95
Feb 2001 - Oct 2003
-16.57
Feb 2001 - Oct 2003
-16.55
Feb 2001 - Oct 2003
-17.14
Jan 1990 - Sep 1991
5 Worst Drawdowns - Average
-23.85 -24.25 -24.23 -24.42 -24.69
10 Worst Drawdowns - Average
-19.25 -19.39 -19.37 -19.60 -19.72

For a deeper insight, please refer to the Frank Armstrong Ideal Index Portfolio: ETF allocation and returns page.