JL Collins Simple Path to Wealth Portfolio: Rebalancing Strategy

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

Managing the JL Collins Simple Path to Wealth Portfolio with a yearly rebalancing, you would have obtained a 10.67% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 9.36%.

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 Sep 30, 2024

Implementing different rebalancing strategies, the JL Collins Simple Path to Wealth 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
JL COLLINS SIMPLE PATH TO WEALTH PORTFOLIO RETURNS
Period: January 1871 - September 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Sep 30, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~154Y)
No Rebalancing 35.23 (0) 15.17 (0) 12.77 (0) 10.67 (0) 8.99 (0)
Yearly Rebalancing 29.29 (1) 11.58 (5) 10.13 (10) 9.46 (30) 8.34 (154)
Half Yearly Rebalancing 29.12 (2) 11.57 (10) 10.13 (20) 9.36 (60) 8.35 (308)
Quarterly Rebalancing 29.04 (4) 11.65 (20) 10.20 (40) 9.44 (120) 8.35 (615)
5% Tolerance per asset 29.71 (1) 11.66 (2) 10.23 (3) 9.52 (14) 8.36 (57)
10% Tolerance per asset 30.15 (0) 12.12 (1) 10.47 (1) 9.65 (4) 8.50 (19)

In order to have complete information about the portfolio, please refer to the JL Collins Simple Path to Wealth Portfolio: ETF allocation and returns page.

Performances as of Sep 30, 2024

Historical returns and stats of JL Collins Simple Path to Wealth Portfolio, after implementing different rebalancing strategies.

JL COLLINS SIMPLE PATH TO WEALTH PORTFOLIO PERFORMANCES
Period: January 1871 - September 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 8.99 (0) 15.68 0.57 -82.48 0.11
Yearly Rebalancing 8.34 (154) 12.50 0.67 -72.36 0.12
Half Yearly Rebalancing 8.35 (308) 12.62 0.66 -72.32 0.12
Quarterly Rebalancing 8.35 (615) 12.66 0.66 -72.64 0.12
5% Tolerance per asset 8.36 (57) 12.72 0.66 -72.90 0.11
10% Tolerance per asset 8.50 (19) 12.92 0.66 -71.11 0.12
(*) Since Jan 1871 (~154 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Sep 30, 2024

Historical Drawdowns of JL Collins Simple Path to Wealth Portfolio, after implementing different rebalancing strategies.

JL COLLINS SIMPLE PATH TO WEALTH PORTFOLIO DRAWDOWNS
Period: January 1871 - September 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-82.48
Sep 1929 - Dec 1944
-72.36
Sep 1929 - Jan 1937
-72.32
Sep 1929 - Oct 1936
-72.64
Sep 1929 - Oct 1936
-72.90
Sep 1929 - Oct 1936
-71.11
Sep 1929 - Jul 1936
-50.77
Nov 2007 - Feb 2012
-39.03
Mar 1937 - Mar 1943
-39.39
Mar 1937 - Mar 1943
-39.64
Mar 1937 - Mar 1943
-39.58
Mar 1937 - Mar 1943
-41.81
Nov 2007 - Apr 2011
-45.70
Jan 1973 - Dec 1976
-38.53
Nov 2007 - Dec 2010
-39.11
Nov 2007 - Jan 2011
-39.49
Nov 2007 - Jan 2011
-39.40
Nov 2007 - Jan 2011
-38.82
Mar 1937 - Mar 1943
-43.88
Sep 2000 - Mar 2006
-34.54
Jan 1973 - Jan 1976
-35.15
Jan 1973 - Jan 1976
-35.16
Jan 1973 - Jan 1976
-35.73
Jan 1973 - Mar 1976
-36.71
Jan 1973 - Jun 1976
-29.97
Dec 1968 - Mar 1971
-30.50
Sep 2000 - Dec 2004
-31.23
Sep 2000 - Dec 2004
-30.79
Sep 2000 - Dec 2004
-30.88
Sep 2000 - Dec 2004
-30.21
Sep 2000 - Dec 2004
5 Worst Drawdowns - Average
-50.56 -42.99 -43.44 -43.54 -43.70 -43.73
10 Worst Drawdowns - Average
-38.30 -33.10 -33.26 -33.32 -33.54 -33.81

For a deeper insight, please refer to the JL Collins Simple Path to Wealth Portfolio: ETF allocation and returns page.