Technology To CAD Portfolio: Rebalancing Strategy

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

Managing the Technology To CAD Portfolio with a yearly rebalancing, you would have obtained a 14.84% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 14.84%.

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 To CAD 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 CAD, 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)
TECHNOLOGY TO CAD 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 36.32 (0) 22.92 (0) 20.82 (0) 14.84 (0) 13.62 (0)
Yearly Rebalancing 36.32 (1) 22.92 (5) 20.82 (10) 14.84 (30) 13.62 (54)
Half Yearly Rebalancing 36.32 (2) 22.92 (10) 20.82 (20) 14.84 (60) 13.62 (108)
Quarterly Rebalancing 36.32 (4) 22.92 (20) 20.82 (40) 14.84 (120) 13.62 (216)
5% Tolerance per asset 36.32 (0) 22.92 (0) 20.82 (0) 14.84 (0) 13.62 (0)
10% Tolerance per asset 36.32 (0) 22.92 (0) 20.82 (0) 14.84 (0) 13.62 (0)

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

Performances as of Nov 30, 2024

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

TECHNOLOGY TO CAD 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 13.62 (0) 21.30 0.64 -79.28 0.17
Yearly Rebalancing 13.62 (54) 21.30 0.64 -79.28 0.17
Half Yearly Rebalancing 13.62 (108) 21.30 0.64 -79.28 0.17
Quarterly Rebalancing 13.62 (216) 21.30 0.64 -79.28 0.17
5% Tolerance per asset 13.62 (0) 21.30 0.64 -79.28 0.17
10% Tolerance per asset 13.62 (0) 21.30 0.64 -79.28 0.17
(*) Since Jan 1971 (~54 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Nov 30, 2024

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

TECHNOLOGY TO CAD 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%
-79.28
Apr 2000 - Jul 2015
-79.28
Apr 2000 - Jul 2015
-79.28
Apr 2000 - Jul 2015
-79.28
Apr 2000 - Jul 2015
-79.28
Apr 2000 - Jul 2015
-79.28
Apr 2000 - Jul 2015
-58.81
Jan 1973 - May 1978
-58.81
Jan 1973 - May 1978
-58.81
Jan 1973 - May 1978
-58.81
Jan 1973 - May 1978
-58.81
Jan 1973 - May 1978
-58.81
Jan 1973 - May 1978
-35.07
Sep 1987 - May 1990
-35.07
Sep 1987 - May 1990
-35.07
Sep 1987 - May 1990
-35.07
Sep 1987 - May 1990
-35.07
Sep 1987 - May 1990
-35.07
Sep 1987 - May 1990
-28.84
Jan 2022 - Jul 2023
-28.84
Jan 2022 - Jul 2023
-28.84
Jan 2022 - Jul 2023
-28.84
Jan 2022 - Jul 2023
-28.84
Jan 2022 - Jul 2023
-28.84
Jan 2022 - Jul 2023
-27.44
Jul 1990 - Feb 1991
-27.44
Jul 1990 - Feb 1991
-27.44
Jul 1990 - Feb 1991
-27.44
Jul 1990 - Feb 1991
-27.44
Jul 1990 - Feb 1991
-27.44
Jul 1990 - Feb 1991
5 Worst Drawdowns - Average
-45.89 -45.89 -45.89 -45.89 -45.89 -45.89
10 Worst Drawdowns - Average
-32.29 -32.29 -32.29 -32.29 -32.29 -32.29

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