Scott Burns Couch Potato To EUR Portfolio: Rebalancing Strategy

Data Source: from January 1985 to November 2024
Consolidated Returns as of 30 November 2024

Managing the Scott Burns Couch Potato To EUR Portfolio with a yearly rebalancing, you would have obtained a 9.96% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 9.05%.

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 Nov 30, 2024

Implementing different rebalancing strategies, the Scott Burns Couch Potato To EUR Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1985.

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)
SCOTT BURNS COUCH POTATO TO EUR PORTFOLIO RETURNS
Period: January 1985 - November 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Nov 30, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~40Y)
No Rebalancing 33.96 (0) 13.76 (0) 12.28 (0) 9.96 (0) 9.00 (0)
Yearly Rebalancing 24.35 (1) 9.88 (5) 9.49 (10) 9.20 (30) 8.43 (40)
Half Yearly Rebalancing 23.91 (2) 9.86 (10) 9.47 (20) 9.05 (60) 8.36 (80)
Quarterly Rebalancing 23.79 (4) 9.89 (20) 9.51 (40) 9.16 (120) 8.47 (160)
5% Tolerance per asset 24.43 (0) 9.89 (2) 9.53 (4) 9.13 (17) 8.41 (20)
10% Tolerance per asset 25.32 (1) 10.21 (2) 9.78 (3) 9.36 (8) 8.55 (8)

In order to have complete information about the portfolio, please refer to the Scott Burns Couch Potato To EUR Portfolio: ETF allocation and returns page.

Performances as of Nov 30, 2024

Historical returns and stats of Scott Burns Couch Potato To EUR Portfolio, after implementing different rebalancing strategies.

SCOTT BURNS COUCH POTATO TO EUR PORTFOLIO PERFORMANCES
Period: January 1985 - November 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 9.00 (0) 13.17 0.68 -35.60 0.25
Yearly Rebalancing 8.43 (40) 12.06 0.70 -27.21 0.31
Half Yearly Rebalancing 8.36 (80) 11.99 0.70 -27.32 0.31
Quarterly Rebalancing 8.47 (160) 12.00 0.71 -26.58 0.32
5% Tolerance per asset 8.41 (20) 12.08 0.70 -26.90 0.31
10% Tolerance per asset 8.55 (8) 12.28 0.70 -27.30 0.31
(*) Since Jan 1985 (~40 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Nov 30, 2024

Historical Drawdowns of Scott Burns Couch Potato To EUR Portfolio, after implementing different rebalancing strategies.

SCOTT BURNS COUCH POTATO TO EUR PORTFOLIO DRAWDOWNS
Period: January 1985 - November 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-35.60
Nov 2000 - Jan 2012
-27.21
Jun 1986 - Jan 1989
-27.32
Jun 2001 - May 2010
-26.58
Jun 2001 - May 2010
-26.90
Jun 2001 - May 2010
-27.30
Jun 1986 - Jan 1989
-27.30
Jun 1986 - Jan 1989
-26.51
Jun 2001 - Apr 2010
-25.89
Jun 1986 - Jan 1989
-25.58
Sep 1989 - May 1991
-26.37
Jun 1986 - Jan 1989
-26.49
Sep 1989 - May 1991
-26.49
Sep 1989 - May 1991
-25.61
Sep 1989 - May 1991
-25.55
Sep 1989 - May 1991
-25.40
Jun 1986 - Jan 1989
-25.70
Sep 1989 - May 1991
-25.94
Jun 2001 - May 2010
-16.26
Feb 1994 - Aug 1995
-16.61
Feb 1994 - Sep 1995
-16.67
Feb 1994 - Sep 1995
-16.70
Feb 1994 - Sep 1995
-16.68
Feb 1994 - Sep 1995
-16.26
Feb 1994 - Aug 1995
-13.90
Jul 1998 - Jan 1999
-11.83
Mar 1985 - May 1986
-11.76
Mar 1985 - May 1986
-11.69
Mar 1985 - May 1986
-11.83
Mar 1985 - May 1986
-11.99
Jul 1998 - Jan 1999
5 Worst Drawdowns - Average
-23.91 -21.55 -21.44 -21.19 -21.50 -21.59
10 Worst Drawdowns - Average
-17.82 -15.94 -15.85 -15.74 -15.96 -16.29

For a deeper insight, please refer to the Scott Burns Couch Potato To EUR Portfolio: ETF allocation and returns page.