Vanguard All-Equity Portfolio: Rebalancing Strategy

Data Source: from January 1985 to September 2024
Consolidated Returns as of 30 September 2024

Managing the Vanguard All-Equity Portfolio with a yearly rebalancing, you would have obtained a 8.78% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 8.68%.

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 Sep 30, 2024

Implementing different rebalancing strategies, the Vanguard All-Equity Portfolio guaranteed the following returns.

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

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)
VANGUARD ALL-EQUITY PORTFOLIO RETURNS
Period: January 1985 - September 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Sep 30, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~40Y)
No Rebalancing 31.73 (0) 13.50 (0) 12.07 (0) 8.78 (0) 9.96 (0)
Yearly Rebalancing 29.39 (1) 12.25 (5) 10.78 (10) 8.72 (30) 9.90 (40)
Half Yearly Rebalancing 29.45 (2) 12.27 (10) 10.76 (20) 8.68 (60) 9.78 (80)
Quarterly Rebalancing 29.41 (4) 12.26 (20) 10.72 (40) 8.60 (120) 9.69 (159)
5% Tolerance per asset 29.66 (1) 12.34 (1) 10.78 (3) 8.71 (12) 9.87 (17)
10% Tolerance per asset 29.85 (0) 12.38 (0) 10.90 (1) 8.77 (4) 9.95 (6)

In order to have complete information about the portfolio, please refer to the Vanguard All-Equity Portfolio: ETF allocation and returns page.

Performances as of Sep 30, 2024

Historical returns and stats of Vanguard All-Equity Portfolio, after implementing different rebalancing strategies.

VANGUARD ALL-EQUITY PORTFOLIO PERFORMANCES
Period: January 1985 - September 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 9.96 (0) 12.84 0.78 -41.49 0.24
Yearly Rebalancing 9.90 (40) 12.72 0.78 -41.63 0.24
Half Yearly Rebalancing 9.78 (80) 12.73 0.77 -41.35 0.24
Quarterly Rebalancing 9.69 (159) 12.72 0.76 -41.26 0.23
5% Tolerance per asset 9.87 (17) 12.71 0.78 -41.49 0.24
10% Tolerance per asset 9.95 (6) 12.73 0.78 -41.78 0.24
(*) Since Jan 1985 (~40 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Sep 30, 2024

Historical Drawdowns of Vanguard All-Equity Portfolio, after implementing different rebalancing strategies.

VANGUARD ALL-EQUITY PORTFOLIO DRAWDOWNS
Period: January 1985 - September 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-41.49
Sep 2000 - Dec 2006
-41.63
Sep 2000 - Oct 2006
-41.35
Sep 2000 - Oct 2006
-41.26
Sep 2000 - Oct 2006
-41.49
Sep 2000 - Oct 2006
-41.78
Sep 2000 - Nov 2006
-41.03
Jun 2007 - Jan 2013
-40.50
Jun 2007 - Jan 2013
-40.19
Jun 2007 - Jan 2013
-40.46
Jun 2007 - Jan 2013
-40.02
Jun 2007 - Jan 2013
-39.65
Jun 2007 - Jan 2013
-24.45
Sep 1987 - Jul 1989
-26.05
Sep 1987 - Jul 1989
-26.72
Sep 1987 - Jul 1989
-26.66
Sep 1987 - Jul 1989
-26.16
Sep 1987 - Jul 1989
-25.88
Sep 1987 - Jul 1989
-21.30
Jan 1990 - Oct 1991
-19.37
Jan 1990 - May 1991
-19.33
Jan 1990 - May 1991
-19.29
Jan 1990 - May 1991
-18.30
Jan 1990 - May 1991
-19.94
Jan 1990 - Aug 1991
-18.56
Jan 2022 - Jul 2023
-18.26
Feb 2020 - Aug 2020
-18.26
Feb 2020 - Aug 2020
-18.26
Feb 2020 - Aug 2020
-18.27
Feb 2020 - Aug 2020
-18.24
Feb 2020 - Aug 2020
5 Worst Drawdowns - Average
-29.37 -29.16 -29.17 -29.19 -28.85 -29.10
10 Worst Drawdowns - Average
-20.19 -20.34 -20.36 -20.37 -20.14 -20.24

For a deeper insight, please refer to the Vanguard All-Equity Portfolio: ETF allocation and returns page.