Gretchen Tai Portfolio: Rebalancing Strategy

Data Source: from January 1986 to April 2024
Consolidated Returns as of 30 April 2024

Managing the Gretchen Tai Portfolio with a yearly rebalancing, you would have obtained a 7.20% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 7.11%.

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 Gretchen Tai Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1986.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
GRETCHEN TAI PORTFOLIO RETURNS
Period: January 1986 - 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
(~38Y)
Yearly Rebalancing 8.50 (1) 5.35 (5) 5.55 (10) 7.20 (30) 8.72 (39)
Half Yearly Rebalancing 8.40 (2) 5.42 (10) 5.58 (20) 7.07 (60) 8.53 (77)
Quarterly Rebalancing 8.43 (4) 5.59 (20) 5.66 (40) 7.11 (120) 8.54 (154)
5% Tolerance per asset 8.86 (0) 5.38 (1) 5.55 (3) 7.05 (8) 8.46 (12)
10% Tolerance per asset 9.64 (0) 5.76 (1) 5.85 (1) 6.87 (2) 8.43 (4)

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

Performances as of Apr 30, 2024

Historical returns and stats of Gretchen Tai Portfolio, after implementing different rebalancing strategies.

GRETCHEN TAI PORTFOLIO PERFORMANCES
Period: January 1986 - 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 8.72 (39) 11.87 0.73 -41.80 0.21
Half Yearly Rebalancing 8.53 (77) 11.90 0.72 -42.40 0.20
Quarterly Rebalancing 8.54 (154) 11.93 0.72 -42.90 0.20
5% Tolerance per asset 8.46 (12) 11.89 0.71 -43.26 0.20
10% Tolerance per asset 8.43 (4) 12.12 0.70 -44.04 0.19
(*) Since Jan 1986 (~38 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Apr 30, 2024

Historical Drawdowns of Gretchen Tai Portfolio, after implementing different rebalancing strategies.

GRETCHEN TAI PORTFOLIO DRAWDOWNS
Period: January 1986 - April 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-41.80
Nov 2007 - Feb 2011
-42.40
Nov 2007 - Feb 2011
-42.90
Nov 2007 - Feb 2011
-43.26
Nov 2007 - Sep 2012
-44.04
Nov 2007 - Nov 2012
-23.59
Jan 2022 - In progress
-23.96
Apr 2000 - Dec 2003
-23.63
Jan 2022 - In progress
-23.98
Apr 2000 - Dec 2003
-24.95
Apr 2000 - Jan 2004
-22.92
Apr 2000 - Nov 2003
-23.62
Jan 2022 - In progress
-23.54
Apr 2000 - Dec 2003
-23.58
Jan 2022 - In progress
-23.97
Jan 2022 - Mar 2024
-17.50
Sep 1987 - Nov 1988
-17.58
Sep 1987 - Nov 1988
-16.87
Sep 1987 - Nov 1988
-17.37
Sep 1987 - Dec 1988
-17.65
Jan 2020 - Aug 2020
-16.24
Jan 2020 - Aug 2020
-16.40
Jan 1990 - Feb 1991
-16.29
Jan 1990 - Feb 1991
-16.41
Jan 1990 - Feb 1991
-17.37
Sep 1987 - Dec 1988
5 Worst Drawdowns - Average
-24.41 -24.79 -24.65 -24.92 -25.60
10 Worst Drawdowns - Average
-18.57 -18.77 -18.68 -18.08 -18.62

For a deeper insight, please refer to the Gretchen Tai Portfolio: ETF allocation and returns page.