US Stocks Value Portfolio: Rebalancing Strategy

Data Source: from January 1975 to March 2024
Consolidated Returns as of 31 March 2024

Managing the US Stocks Value Portfolio with a yearly rebalancing, you would have obtained a 10.28% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 10.28%.

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 US Stocks Value Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1975.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
US STOCKS VALUE PORTFOLIO RETURNS
Period: January 1975 - 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
(~49Y)
Yearly Rebalancing 24.99 (1) 13.06 (5) 10.43 (10) 10.28 (30) 12.24 (50)
Half Yearly Rebalancing 24.99 (2) 13.06 (10) 10.43 (20) 10.28 (60) 12.24 (99)
Quarterly Rebalancing 24.99 (4) 13.06 (20) 10.43 (40) 10.28 (120) 12.24 (197)
5% Tolerance per asset 24.99 (0) 13.06 (0) 10.43 (0) 10.28 (0) 12.24 (0)
10% Tolerance per asset 24.99 (0) 13.06 (0) 10.43 (0) 10.28 (0) 12.24 (0)

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

Performances as of Mar 31, 2024

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

US STOCKS VALUE PORTFOLIO PERFORMANCES
Period: January 1975 - 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 12.24 (50) 15.30 0.80 -55.41 0.22
Half Yearly Rebalancing 12.24 (99) 15.30 0.80 -55.41 0.22
Quarterly Rebalancing 12.24 (197) 15.30 0.80 -55.41 0.22
5% Tolerance per asset 12.24 (0) 15.30 0.80 -55.41 0.22
10% Tolerance per asset 12.24 (0) 15.30 0.80 -55.41 0.22
(*) Since Jan 1975 (~49 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Mar 31, 2024

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

US STOCKS VALUE PORTFOLIO DRAWDOWNS
Period: January 1975 - March 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-55.41
Jun 2007 - Jan 2013
-55.41
Jun 2007 - Jan 2013
-55.41
Jun 2007 - Jan 2013
-55.41
Jun 2007 - Jan 2013
-55.41
Jun 2007 - Jan 2013
-32.49
Sep 2000 - Feb 2004
-32.49
Sep 2000 - Feb 2004
-32.49
Sep 2000 - Feb 2004
-32.49
Sep 2000 - Feb 2004
-32.49
Sep 2000 - Feb 2004
-30.17
Sep 1987 - Apr 1989
-30.17
Sep 1987 - Apr 1989
-30.17
Sep 1987 - Apr 1989
-30.17
Sep 1987 - Apr 1989
-30.17
Sep 1987 - Apr 1989
-26.06
Jan 2020 - Dec 2020
-26.06
Jan 2020 - Dec 2020
-26.06
Jan 2020 - Dec 2020
-26.06
Jan 2020 - Dec 2020
-26.06
Jan 2020 - Dec 2020
-17.60
Jul 1998 - Dec 1998
-17.60
Jul 1998 - Dec 1998
-17.60
Jul 1998 - Dec 1998
-17.60
Jul 1998 - Dec 1998
-17.60
Jul 1998 - Dec 1998
5 Worst Drawdowns - Average
-32.35 -32.35 -32.35 -32.35 -32.35
10 Worst Drawdowns - Average
-23.18 -23.18 -23.18 -23.18 -23.18

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