Total Bond US To CAD Portfolio: Rebalancing Strategy

Data Source: from August 1953 to August 2024
Consolidated Returns as of 31 August 2024

Managing the Total Bond US To CAD Portfolio with a yearly rebalancing, you would have obtained a 4.36% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 4.36%.

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 Aug 31, 2024

Implementing different rebalancing strategies, the Total Bond US To CAD Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on August 1953.

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)
TOTAL BOND US TO CAD PORTFOLIO RETURNS
Period: August 1953 - August 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Aug 31, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~71Y)
No Rebalancing 6.74 (0) 0.19 (0) 3.82 (0) 4.36 (0) 5.96 (0)
Yearly Rebalancing 6.74 (1) 0.19 (5) 3.82 (10) 4.36 (30) 5.96 (71)
Half Yearly Rebalancing 6.74 (2) 0.19 (10) 3.82 (20) 4.36 (60) 5.96 (142)
Quarterly Rebalancing 6.74 (4) 0.19 (20) 3.82 (40) 4.36 (120) 5.96 (284)
5% Tolerance per asset 6.74 (0) 0.19 (0) 3.82 (0) 4.36 (0) 5.96 (0)
10% Tolerance per asset 6.74 (0) 0.19 (0) 3.82 (0) 4.36 (0) 5.96 (0)

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

Performances as of Aug 31, 2024

Historical returns and stats of Total Bond US To CAD Portfolio, after implementing different rebalancing strategies.

TOTAL BOND US TO CAD PORTFOLIO PERFORMANCES
Period: August 1953 - August 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 5.96 (0) 7.51 0.79 -27.29 0.22
Yearly Rebalancing 5.96 (71) 7.51 0.79 -27.29 0.22
Half Yearly Rebalancing 5.96 (142) 7.51 0.79 -27.29 0.22
Quarterly Rebalancing 5.96 (284) 7.51 0.79 -27.29 0.22
5% Tolerance per asset 5.96 (0) 7.51 0.79 -27.29 0.22
10% Tolerance per asset 5.96 (0) 7.51 0.79 -27.29 0.22
(*) Since Aug 1953 (~71 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Aug 31, 2024

Historical Drawdowns of Total Bond US To CAD Portfolio, after implementing different rebalancing strategies.

TOTAL BOND US TO CAD PORTFOLIO DRAWDOWNS
Period: August 1953 - August 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-27.29
Jan 2003 - Dec 2008
-27.29
Jan 2003 - Dec 2008
-27.29
Jan 2003 - Dec 2008
-27.29
Jan 2003 - Dec 2008
-27.29
Jan 2003 - Dec 2008
-27.29
Jan 2003 - Dec 2008
-16.90
May 2020 - In progress
-16.90
May 2020 - In progress
-16.90
May 2020 - In progress
-16.90
May 2020 - In progress
-16.90
May 2020 - In progress
-16.90
May 2020 - In progress
-14.82
Apr 2009 - May 2012
-14.82
Apr 2009 - May 2012
-14.82
Apr 2009 - May 2012
-14.82
Apr 2009 - May 2012
-14.82
Apr 2009 - May 2012
-14.82
Apr 2009 - May 2012
-11.99
Jul 1979 - Apr 1980
-11.99
Jul 1979 - Apr 1980
-11.99
Jul 1979 - Apr 1980
-11.99
Jul 1979 - Apr 1980
-11.99
Jul 1979 - Apr 1980
-11.99
Jul 1979 - Apr 1980
-10.03
May 1958 - Jun 1960
-10.03
May 1958 - Jun 1960
-10.03
May 1958 - Jun 1960
-10.03
May 1958 - Jun 1960
-10.03
May 1958 - Jun 1960
-10.03
May 1958 - Jun 1960
5 Worst Drawdowns - Average
-16.20 -16.20 -16.20 -16.20 -16.20 -16.20
10 Worst Drawdowns - Average
-12.18 -12.18 -12.18 -12.18 -12.18 -12.18

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