US Cash Portfolio: Rebalancing Strategy

Data Source: from January 1871 to October 2024
Consolidated Returns as of 31 October 2024

Managing the US Cash Portfolio with a yearly rebalancing, you would have obtained a 2.29% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 2.29%.

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 Oct 31, 2024

Implementing different rebalancing strategies, the US Cash Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1871.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
US CASH PORTFOLIO RETURNS
Period: January 1871 - October 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Oct 31, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~154Y)
No Rebalancing 5.32 (0) 2.23 (0) 1.53 (0) 2.29 (0) 4.00 (0)
Yearly Rebalancing 5.32 (1) 2.23 (5) 1.53 (10) 2.29 (30) 4.00 (154)
Half Yearly Rebalancing 5.32 (2) 2.23 (10) 1.53 (20) 2.29 (60) 4.00 (308)
Quarterly Rebalancing 5.32 (4) 2.23 (20) 1.53 (40) 2.29 (120) 4.00 (616)
5% Tolerance per asset 5.32 (0) 2.23 (0) 1.53 (0) 2.29 (0) 4.00 (0)
10% Tolerance per asset 5.32 (0) 2.23 (0) 1.53 (0) 2.29 (0) 4.00 (0)

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

Performances as of Oct 31, 2024

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

US CASH PORTFOLIO PERFORMANCES
Period: January 1871 - October 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 4.00 (0) 0.76 5.24 -0.42 9.50
Yearly Rebalancing 4.00 (154) 0.76 5.24 -0.42 9.50
Half Yearly Rebalancing 4.00 (308) 0.76 5.24 -0.42 9.50
Quarterly Rebalancing 4.00 (616) 0.76 5.24 -0.42 9.50
5% Tolerance per asset 4.00 (0) 0.76 5.24 -0.42 9.50
10% Tolerance per asset 4.00 (0) 0.76 5.24 -0.42 9.50
(*) Since Jan 1871 (~154 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Oct 31, 2024

Historical Drawdowns of US Cash Portfolio, after implementing different rebalancing strategies.

US CASH PORTFOLIO DRAWDOWNS
Period: January 1871 - October 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-0.42
Nov 2009 - Aug 2017
-0.42
Nov 2009 - Aug 2017
-0.42
Nov 2009 - Aug 2017
-0.42
Nov 2009 - Aug 2017
-0.42
Nov 2009 - Aug 2017
-0.42
Nov 2009 - Aug 2017
-0.28
Oct 2008 - May 2009
-0.28
Oct 2008 - May 2009
-0.28
Oct 2008 - May 2009
-0.28
Oct 2008 - May 2009
-0.28
Oct 2008 - May 2009
-0.28
Oct 2008 - May 2009
-0.16
Apr 2020 - Jul 2022
-0.16
Apr 2020 - Jul 2022
-0.16
Apr 2020 - Jul 2022
-0.16
Apr 2020 - Jul 2022
-0.16
Apr 2020 - Jul 2022
-0.16
Apr 2020 - Jul 2022
-0.08
Jun 2009 - Sep 2009
-0.08
Jun 2009 - Sep 2009
-0.08
Jun 2009 - Sep 2009
-0.08
Jun 2009 - Sep 2009
-0.08
Jun 2009 - Sep 2009
-0.08
Jun 2009 - Sep 2009
-0.07
Apr 2008 - May 2008
-0.07
Apr 2008 - May 2008
-0.07
Apr 2008 - May 2008
-0.07
Apr 2008 - May 2008
-0.07
Apr 2008 - May 2008
-0.07
Apr 2008 - May 2008
5 Worst Drawdowns - Average
-0.20 -0.20 -0.20 -0.20 -0.20 -0.20
10 Worst Drawdowns - Average
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For a deeper insight, please refer to the US Cash Portfolio: ETF allocation and returns page.