Managing the Frank Vasquez Golden Ratio Portfolio with a yearly rebalancing, you would have obtained a 9.90% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 8.79%.
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.
At fixed time intervals:
- Yearly: Jan 1st
- Half Yearly: Jan 1st, Jul 1st
- Quarterly: Jan 1st, Apr 1st, Jul 1st, Oct 1st
Portfolio Returns as of May 31, 2025
Implementing different rebalancing strategies, the Frank Vasquez Golden Ratio Portfolio guaranteed the following returns.
Portfolio returns are calculated in USD, assuming:
- No fees or capital gain taxes
- the reinvestment of dividends, if existing
| Return (%) and number of rebalances as of May 31, 2025 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~97Y) |
|||||
| No Rebalancing | -1.19 | (0) | 12.46 | (0) | 7.17 | (0) | 9.90 | (0) | 10.72 | (0) |
| Yearly Rebalancing | 11.45 | (1) | 6.94 | (5) | 7.24 | (10) | 8.90 | (30) | 8.73 | (98) |
| Half Yearly Rebalancing | 11.14 | (2) | 7.08 | (10) | 7.40 | (20) | 8.79 | (60) | 8.65 | (195) |
| Quarterly Rebalancing | 11.28 | (4) | 7.01 | (20) | 7.57 | (40) | 8.92 | (120) | 8.66 | (390) |
| 5% Tolerance per asset | 11.40 | (1) | 7.12 | (4) | 7.44 | (6) | 8.96 | (22) | 8.70 | (66) |
| 10% Tolerance per asset | 11.85 | (0) | 7.18 | (1) | 7.62 | (2) | 9.33 | (8) | 9.10 | (25) |
In order to have complete information about the portfolio, please refer to the Frank Vasquez Golden Ratio Portfolio: ETF allocation and returns page.
Performances as of May 31, 2025
Historical returns and stats of Frank Vasquez Golden Ratio Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 10.72 | (0) | 15.63 | 0.69 | -53.51 | 0.20 |
| Yearly Rebalancing | 8.73 | (98) | 10.50 | 0.83 | -55.70 | 0.16 |
| Half Yearly Rebalancing | 8.65 | (195) | 10.69 | 0.81 | -55.58 | 0.16 |
| Quarterly Rebalancing | 8.66 | (390) | 10.78 | 0.80 | -56.20 | 0.15 |
| 5% Tolerance per asset | 8.70 | (66) | 10.77 | 0.81 | -56.96 | 0.15 |
| 10% Tolerance per asset | 9.10 | (25) | 10.78 | 0.84 | -55.96 | 0.16 |
Drawdowns as of May 31, 2025
Historical Drawdowns of Frank Vasquez Golden Ratio Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-53.51
Jun 2007 - Apr 2011
|
-55.70
Sep 1929 - Nov 1935
|
-55.58
Sep 1929 - Sep 1935
|
-56.20
Sep 1929 - Jul 1935
|
-56.96
Sep 1929 - Nov 1935
|
-55.96
Sep 1929 - Oct 1935
|
|
-51.31
Sep 1929 - Aug 1936
|
-27.04
Mar 1937 - Jan 1943
|
-27.79
Mar 1937 - Jan 1943
|
-28.26
Mar 1937 - Jan 1943
|
-27.49
Mar 1937 - Jan 1943
|
-25.87
Mar 1937 - Jan 1943
|
|
-40.29
Dec 1972 - Jan 1976
|
-23.37
Jan 2022 - Jul 2024
|
-23.38
Jan 2022 - Jul 2024
|
-23.61
Jan 2022 - Jul 2024
|
-24.36
Nov 2007 - Mar 2010
|
-24.38
Jan 2022 - Jul 2024
|
|
-38.23
Sep 2018 - Dec 2020
|
-22.00
Nov 2007 - Nov 2009
|
-22.76
Nov 2007 - Nov 2009
|
-23.27
Nov 2007 - Nov 2009
|
-23.95
Jan 2022 - Jul 2024
|
-23.02
Jun 2008 - Nov 2009
|
|
-34.56
Dec 1968 - Jan 1972
|
-18.29
Mar 1974 - Feb 1975
|
-19.40
Mar 1974 - Mar 1975
|
-18.68
Mar 1974 - Feb 1975
|
-18.97
Mar 1974 - May 1975
|
-19.66
Dec 1968 - Mar 1971
|
| 5 Worst Drawdowns - Average | |||||
| -43.58 | -29.28 | -29.78 | -30.01 | -30.35 | -29.78 |
| 10 Worst Drawdowns - Average | |||||
| -35.72 | -21.43 | -21.54 | -21.64 | -22.10 | -22.31 |
For a deeper insight, please refer to the Frank Vasquez Golden Ratio Portfolio: ETF allocation and returns page.
