Aim Ways Ulcer Free Strategy Portfolio: Rebalancing Strategy

Data Source: from July 1985 to March 2024
Consolidated Returns as of 31 March 2024

Managing the Aim Ways Ulcer Free Strategy Portfolio with a yearly rebalancing, you would have obtained a 6.78% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 6.63%.

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 Mar 31, 2024

Implementing different rebalancing strategies, the Aim Ways Ulcer Free Strategy Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on July 1985.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
AIM WAYS ULCER FREE STRATEGY PORTFOLIO RETURNS
Period: July 1985 - March 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Mar 31, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~39Y)
Yearly Rebalancing 6.99 (1) 4.21 (5) 4.44 (10) 6.78 (30) 7.71 (39)
Half Yearly Rebalancing 6.81 (2) 4.10 (10) 4.43 (20) 6.60 (60) 7.59 (78)
Quarterly Rebalancing 6.65 (4) 4.14 (20) 4.44 (40) 6.63 (120) 7.63 (155)
5% Tolerance per asset 7.47 (1) 4.40 (2) 4.69 (3) 6.97 (10) 7.87 (11)
10% Tolerance per asset 9.04 (0) 4.65 (0) 5.15 (1) 7.32 (4) 8.15 (4)

In order to have complete information about the portfolio, please refer to the Aim Ways Ulcer Free Strategy Portfolio: ETF allocation and returns page.

Performances as of Mar 31, 2024

Historical returns and stats of Aim Ways Ulcer Free Strategy Portfolio, after implementing different rebalancing strategies.

AIM WAYS ULCER FREE STRATEGY PORTFOLIO PERFORMANCES
Period: July 1985 - March 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
Yearly Rebalancing 7.71 (39) 5.61 1.38 -17.05 0.45
Half Yearly Rebalancing 7.59 (78) 5.56 1.37 -17.00 0.45
Quarterly Rebalancing 7.63 (155) 5.57 1.37 -17.06 0.45
5% Tolerance per asset 7.87 (11) 5.70 1.38 -17.99 0.44
10% Tolerance per asset 8.15 (4) 5.83 1.40 -18.35 0.44
(*) Since Jul 1985 (~39 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Mar 31, 2024

Historical Drawdowns of Aim Ways Ulcer Free Strategy Portfolio, after implementing different rebalancing strategies.

AIM WAYS ULCER FREE STRATEGY PORTFOLIO DRAWDOWNS
Period: July 1985 - March 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-17.05
Sep 2021 - In progress
-17.00
Sep 2021 - In progress
-17.06
Sep 2021 - In progress
-17.99
Sep 2021 - In progress
-18.35
Sep 2021 - In progress
-12.38
Mar 2008 - Jul 2009
-12.61
Mar 2008 - Jul 2009
-12.94
Mar 2008 - Jul 2009
-12.41
Mar 2008 - Jul 2009
-13.02
Mar 2008 - Jul 2009
-7.22
Feb 1994 - May 1995
-7.22
Feb 1994 - Apr 1995
-7.23
Feb 1994 - May 1995
-7.28
Feb 1994 - May 1995
-7.91
Feb 1994 - Apr 1995
-4.85
May 2013 - Jan 2014
-4.85
May 2013 - Feb 2014
-4.98
May 2013 - Feb 2014
-5.06
May 2013 - Feb 2014
-4.87
May 2013 - Jan 2014
-4.57
Dec 1989 - Jun 1990
-4.61
Dec 1989 - Jun 1990
-4.61
Dec 1989 - Jun 1990
-4.52
Dec 1989 - Jun 1990
-4.52
Dec 1989 - Jun 1990
5 Worst Drawdowns - Average
-9.21 -9.26 -9.36 -9.45 -9.73
10 Worst Drawdowns - Average
-6.60 -6.54 -6.60 -6.61 -6.78

For a deeper insight, please refer to the Aim Ways Ulcer Free Strategy Portfolio: ETF allocation and returns page.