Technology Portfolio: Rebalancing Strategy

Data Source: from January 1971 to November 2024
Consolidated Returns as of 30 November 2024

Managing the Technology Portfolio with a yearly rebalancing, you would have obtained a 14.63% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 14.63%.

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 Technology Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1971.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
TECHNOLOGY PORTFOLIO RETURNS
Period: January 1971 - 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
(~54Y)
No Rebalancing 31.99 (0) 20.72 (0) 17.94 (0) 14.63 (0) 12.88 (0)
Yearly Rebalancing 31.99 (1) 20.72 (5) 17.94 (10) 14.63 (30) 12.88 (54)
Half Yearly Rebalancing 31.99 (2) 20.72 (10) 17.94 (20) 14.63 (60) 12.88 (108)
Quarterly Rebalancing 31.99 (4) 20.72 (20) 17.94 (40) 14.63 (120) 12.88 (216)
5% Tolerance per asset 31.99 (0) 20.72 (0) 17.94 (0) 14.63 (0) 12.88 (0)
10% Tolerance per asset 31.99 (0) 20.72 (0) 17.94 (0) 14.63 (0) 12.88 (0)

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

Performances as of Nov 30, 2024

Historical returns and stats of Technology Portfolio, after implementing different rebalancing strategies.

TECHNOLOGY PORTFOLIO PERFORMANCES
Period: January 1971 - 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 12.88 (0) 22.43 0.57 -81.08 0.16
Yearly Rebalancing 12.88 (54) 22.43 0.57 -81.08 0.16
Half Yearly Rebalancing 12.88 (108) 22.43 0.57 -81.08 0.16
Quarterly Rebalancing 12.88 (216) 22.43 0.57 -81.08 0.16
5% Tolerance per asset 12.88 (0) 22.43 0.57 -81.08 0.16
10% Tolerance per asset 12.88 (0) 22.43 0.57 -81.08 0.16
(*) Since Jan 1971 (~54 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Nov 30, 2024

Historical Drawdowns of Technology Portfolio, after implementing different rebalancing strategies.

TECHNOLOGY PORTFOLIO DRAWDOWNS
Period: January 1971 - November 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-81.08
Apr 2000 - Oct 2014
-81.08
Apr 2000 - Oct 2014
-81.08
Apr 2000 - Oct 2014
-81.08
Apr 2000 - Oct 2014
-81.08
Apr 2000 - Oct 2014
-81.08
Apr 2000 - Oct 2014
-58.37
Jan 1973 - Aug 1978
-58.37
Jan 1973 - Aug 1978
-58.37
Jan 1973 - Aug 1978
-58.37
Jan 1973 - Aug 1978
-58.37
Jan 1973 - Aug 1978
-58.37
Jan 1973 - Aug 1978
-34.57
Sep 1987 - May 1989
-34.57
Sep 1987 - May 1989
-34.57
Sep 1987 - May 1989
-34.57
Sep 1987 - May 1989
-34.57
Sep 1987 - May 1989
-34.57
Sep 1987 - May 1989
-32.58
Jan 2022 - Dec 2023
-32.58
Jan 2022 - Dec 2023
-32.58
Jan 2022 - Dec 2023
-32.58
Jan 2022 - Dec 2023
-32.58
Jan 2022 - Dec 2023
-32.58
Jan 2022 - Dec 2023
-27.93
Jul 1983 - Nov 1985
-27.93
Jul 1983 - Nov 1985
-27.93
Jul 1983 - Nov 1985
-27.93
Jul 1983 - Nov 1985
-27.93
Jul 1983 - Nov 1985
-27.93
Jul 1983 - Nov 1985
5 Worst Drawdowns - Average
-46.90 -46.90 -46.90 -46.90 -46.90 -46.90
10 Worst Drawdowns - Average
-34.12 -34.12 -34.12 -34.12 -34.12 -34.12

For a deeper insight, please refer to the Technology Portfolio: ETF allocation and returns page.