Consolidated Returns as of 31 March 2024
Managing the Simplified Permanent Portfolio with a yearly rebalancing, you would have obtained a 7.06% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 7.02%.
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.
At fixed time intervals:
- Yearly: Jan 1st
- Half Yearly: Jan 1st, Jul 1st
- Quarterly: Jan 1st, Apr 1st, Jul 1st, Oct 1st
Portfolio Returns as of Mar 31, 2024
Implementing different rebalancing strategies, the Simplified Permanent Portfolio guaranteed the following returns.
Portfolio returns are calculated in USD, assuming:
- No fees or capital gain taxes
- the reinvestment of dividends, if existing
| Return (%) and number of rebalances as of Mar 31, 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~153Y) |
|||||
| Yearly Rebalancing | 9.28 | (1) | 6.15 | (5) | 5.12 | (10) | 7.06 | (30) | 5.82 | (154) |
| Half Yearly Rebalancing | 9.13 | (2) | 6.17 | (10) | 5.19 | (20) | 6.94 | (60) | 5.79 | (307) |
| Quarterly Rebalancing | 9.08 | (4) | 6.32 | (20) | 5.27 | (40) | 7.02 | (120) | 5.79 | (613) |
| 5% Tolerance per asset | 9.29 | (1) | 6.11 | (2) | 5.18 | (4) | 6.97 | (17) | 5.80 | (84) |
| 10% Tolerance per asset | 10.81 | (0) | 6.60 | (1) | 5.61 | (2) | 7.52 | (8) | 6.02 | (32) |
In order to have complete information about the portfolio, please refer to the Simplified Permanent Portfolio: ETF allocation and returns page.
Performances as of Mar 31, 2024
Historical returns and stats of Simplified Permanent Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| Yearly Rebalancing | 5.82 | (154) | 6.25 | 0.93 | -30.22 | 0.19 |
| Half Yearly Rebalancing | 5.79 | (307) | 6.27 | 0.92 | -29.85 | 0.19 |
| Quarterly Rebalancing | 5.79 | (613) | 6.27 | 0.92 | -30.27 | 0.19 |
| 5% Tolerance per asset | 5.80 | (84) | 6.26 | 0.93 | -30.59 | 0.19 |
| 10% Tolerance per asset | 6.02 | (32) | 6.38 | 0.94 | -28.91 | 0.21 |
Drawdowns as of Mar 31, 2024
Historical Drawdowns of Simplified Permanent Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
|||
|---|---|---|---|---|
| Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-30.22
Sep 1929 - Jun 1933
|
-29.85
Sep 1929 - May 1933
|
-30.27
Sep 1929 - Apr 1933
|
-30.59
Sep 1929 - May 1933
|
-28.91
Sep 1929 - May 1933
|
|
-16.43
Jan 2022 - Mar 2024
|
-16.33
Jan 2022 - Mar 2024
|
-16.35
Jan 2022 - Mar 2024
|
-16.61
Jan 2022 - Mar 2024
|
-17.03
Jan 2022 - Mar 2024
|
|
-14.34
Dec 1980 - Aug 1982
|
-14.10
Mar 1937 - Oct 1939
|
-14.36
Mar 1937 - Jul 1939
|
-14.33
Mar 1937 - Mar 1940
|
-14.27
Mar 2008 - Aug 2009
|
|
-13.70
Mar 1937 - Oct 1939
|
-13.72
Dec 1980 - Aug 1982
|
-13.96
Jul 1980 - Aug 1982
|
-13.92
Mar 2008 - Sep 2009
|
-13.95
Mar 1937 - Mar 1941
|
|
-13.28
Mar 2008 - Aug 2009
|
-13.51
Mar 2008 - Sep 2009
|
-13.92
Mar 2008 - Sep 2009
|
-13.72
May 1969 - Jan 1971
|
-13.57
Jul 1980 - Aug 1982
|
| 5 Worst Drawdowns - Average | ||||
| -17.60 | -17.50 | -17.77 | -17.83 | -17.54 |
| 10 Worst Drawdowns - Average | ||||
| -14.73 | -14.83 | -14.86 | -14.72 | -14.83 |
For a deeper insight, please refer to the Simplified Permanent Portfolio: ETF allocation and returns page.
