JL Collins Simple Path to Wealth Portfolio: Rebalancing Strategy

Data Source: from January 1871 to February 2024
Consolidated Returns as of 29 February 2024

Managing the JL Collins Simple Path to Wealth Portfolio with a yearly rebalancing, you would have obtained a 9.04% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 9.02%.

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 Feb 29, 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 - February 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Feb 29, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~153Y)
Yearly Rebalancing 22.21 (1) 10.62 (5) 9.41 (10) 9.04 (30) 8.29 (154)
Half Yearly Rebalancing 22.07 (2) 10.62 (10) 9.41 (20) 8.94 (60) 8.30 (307)
Quarterly Rebalancing 21.99 (4) 10.72 (20) 9.49 (40) 9.02 (120) 8.31 (613)
5% Tolerance per asset 22.65 (0) 10.71 (1) 9.53 (3) 9.10 (13) 8.32 (56)
10% Tolerance per asset 22.83 (0) 11.09 (1) 9.72 (1) 9.22 (4) 8.46 (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 Feb 29, 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 - February 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
Yearly Rebalancing 8.29 (154) 12.51 0.66 -72.36 0.11
Half Yearly Rebalancing 8.30 (307) 12.63 0.66 -72.32 0.11
Quarterly Rebalancing 8.31 (613) 12.67 0.66 -72.64 0.11
5% Tolerance per asset 8.32 (56) 12.73 0.65 -72.90 0.11
10% Tolerance per asset 8.46 (19) 12.94 0.65 -71.11 0.12
(*) Since Jan 1871 (~153 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Feb 29, 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 - February 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-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
-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
-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
-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
-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
-42.99 -43.44 -43.54 -43.70 -43.73
10 Worst Drawdowns - Average
-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.