Betterment Robo Advisor 0 Portfolio: Rebalancing Strategy

Data Source: from January 1871 to June 2024
Consolidated Returns as of 30 June 2024

Managing the Betterment Robo Advisor 0 Portfolio with a yearly rebalancing, you would have obtained a 3.20% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 3.20%.

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 Jun 30, 2024

Implementing different rebalancing strategies, the Betterment Robo Advisor 0 Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1871.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
BETTERMENT ROBO ADVISOR 0 PORTFOLIO RETURNS
Period: January 1871 - June 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Jun 30, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~154Y)
Yearly Rebalancing 4.34 (1) 0.89 (5) 1.05 (10) 3.20 (30) 4.44 (154)
Half Yearly Rebalancing 4.34 (2) 0.89 (10) 1.05 (20) 3.20 (60) 4.44 (307)
Quarterly Rebalancing 4.34 (4) 0.89 (20) 1.05 (40) 3.20 (120) 4.44 (614)
5% Tolerance per asset 4.34 (0) 0.89 (0) 1.06 (0) 3.21 (0) 4.44 (0)
10% Tolerance per asset 4.34 (0) 0.89 (0) 1.06 (0) 3.21 (0) 4.44 (0)

In order to have complete information about the portfolio, please refer to the Betterment Robo Advisor 0 Portfolio: ETF allocation and returns page.

Performances as of Jun 30, 2024

Historical returns and stats of Betterment Robo Advisor 0 Portfolio, after implementing different rebalancing strategies.

BETTERMENT ROBO ADVISOR 0 PORTFOLIO PERFORMANCES
Period: January 1871 - June 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
Yearly Rebalancing 4.44 (154) 3.53 1.26 -8.48 0.52
Half Yearly Rebalancing 4.44 (307) 3.53 1.26 -8.48 0.52
Quarterly Rebalancing 4.44 (614) 3.53 1.26 -8.48 0.52
5% Tolerance per asset 4.44 (0) 3.53 1.26 -8.48 0.52
10% Tolerance per asset 4.44 (0) 3.53 1.26 -8.48 0.52
(*) Since Jan 1871 (~154 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Jun 30, 2024

Historical Drawdowns of Betterment Robo Advisor 0 Portfolio, after implementing different rebalancing strategies.

BETTERMENT ROBO ADVISOR 0 PORTFOLIO DRAWDOWNS
Period: January 1871 - June 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-8.48
Apr 1971 - Apr 1972
-8.48
Apr 1971 - Apr 1972
-8.48
Apr 1971 - Apr 1972
-8.48
Apr 1971 - Apr 1972
-8.48
Apr 1971 - Apr 1972
-7.61
Jul 1895 - Dec 1896
-7.61
Jul 1895 - Dec 1896
-7.61
Jul 1895 - Dec 1896
-7.61
Jul 1895 - Dec 1896
-7.61
Jul 1895 - Dec 1896
-6.76
Mar 1970 - Nov 1970
-6.76
Mar 1970 - Nov 1970
-6.76
Mar 1970 - Nov 1970
-6.77
Mar 1970 - Nov 1970
-6.77
Mar 1970 - Nov 1970
-6.20
Sep 1931 - Jul 1932
-6.20
Sep 1931 - Jul 1932
-6.20
Sep 1931 - Jul 1932
-6.19
Sep 1931 - Jul 1932
-6.19
Sep 1931 - Jul 1932
-5.88
Feb 1898 - Jul 1898
-5.88
Feb 1898 - Jul 1898
-5.88
Feb 1898 - Jul 1898
-5.91
Aug 2021 - In progress
-5.91
Aug 2021 - In progress
5 Worst Drawdowns - Average
-6.99 -6.99 -6.99 -6.99 -6.99
10 Worst Drawdowns - Average
-6.08 -6.08 -6.08 -6.08 -6.08

For a deeper insight, please refer to the Betterment Robo Advisor 0 Portfolio: ETF allocation and returns page.