Tyler Golden Butterfly To EUR Portfolio: Rebalancing Strategy

Data Source: from January 1975 to April 2024
Consolidated Returns as of 30 April 2024

Managing the Tyler Golden Butterfly To EUR Portfolio with a yearly rebalancing, you would have obtained a 8.09% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 8.20%.

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 Tyler Golden Butterfly To EUR Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1975.

Portfolio returns are calculated in EUR, 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)
TYLER GOLDEN BUTTERFLY TO EUR PORTFOLIO RETURNS
Period: January 1975 - 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
(~49Y)
Yearly Rebalancing 12.54 (1) 7.84 (5) 8.52 (10) 8.09 (30) 10.39 (50)
Half Yearly Rebalancing 12.42 (2) 8.17 (10) 8.80 (20) 8.04 (60) 10.33 (99)
Quarterly Rebalancing 12.47 (4) 8.54 (20) 8.98 (40) 8.20 (120) 10.36 (198)
5% Tolerance per asset 12.87 (1) 8.78 (4) 9.01 (5) 8.32 (18) 10.54 (33)
10% Tolerance per asset 13.89 (0) 8.41 (1) 8.94 (2) 8.43 (7) 10.73 (11)

In order to have complete information about the portfolio, please refer to the Tyler Golden Butterfly To EUR Portfolio: ETF allocation and returns page.

Performances as of Apr 30, 2024

Historical returns and stats of Tyler Golden Butterfly To EUR Portfolio, after implementing different rebalancing strategies.

TYLER GOLDEN BUTTERFLY TO EUR PORTFOLIO PERFORMANCES
Period: January 1975 - 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 10.39 (50) 11.44 0.91 -27.25 0.38
Half Yearly Rebalancing 10.33 (99) 11.39 0.91 -26.84 0.38
Quarterly Rebalancing 10.36 (198) 11.37 0.91 -26.71 0.39
5% Tolerance per asset 10.54 (33) 11.44 0.92 -27.60 0.38
10% Tolerance per asset 10.73 (11) 11.72 0.92 -27.32 0.39
(*) Since Jan 1975 (~49 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Apr 30, 2024

Historical Drawdowns of Tyler Golden Butterfly To EUR Portfolio, after implementing different rebalancing strategies.

TYLER GOLDEN BUTTERFLY TO EUR PORTFOLIO DRAWDOWNS
Period: January 1975 - April 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-27.25
Sep 1989 - Jun 1991
-26.84
Sep 1989 - Jun 1991
-26.71
Sep 1989 - Jun 1991
-27.60
Sep 1989 - Jun 1991
-27.32
Sep 1989 - Jun 1991
-23.62
Jun 1986 - Jan 1989
-23.24
Apr 2002 - Nov 2005
-23.00
Apr 2002 - Nov 2005
-24.05
Apr 2002 - Nov 2005
-26.09
Jun 1986 - Mar 1989
-22.90
Apr 2002 - Nov 2005
-22.72
Mar 1985 - Jan 1989
-22.13
Jun 1986 - Jan 1989
-23.08
Jun 1986 - Jan 1989
-23.73
Apr 2002 - Nov 2005
-13.97
Feb 1994 - Nov 1995
-13.95
Feb 1994 - Nov 1995
-13.94
Feb 1994 - Nov 1995
-13.98
Feb 1994 - Nov 1995
-14.71
Apr 1998 - Apr 1999
-12.66
Apr 1998 - Apr 1999
-12.41
Apr 1998 - Apr 1999
-12.36
Apr 1998 - Apr 1999
-12.72
Apr 1998 - Apr 1999
-14.28
Feb 1994 - Nov 1995
5 Worst Drawdowns - Average
-20.08 -19.83 -19.63 -20.28 -21.23
10 Worst Drawdowns - Average
-15.53 -15.22 -15.25 -15.56 -15.92

For a deeper insight, please refer to the Tyler Golden Butterfly To EUR Portfolio: ETF allocation and returns page.