The Aim Ways Shield Strategy: Simplified Edition, is an adaptation of the original Aim Ways Shield Strategy, with fewer assets, longer historical backtest, and easier replicability. The following changes where made:
The backtesting period is limited by the inception date of Nasdaq-100 (NASDAQ.X): Feb 5, 1971.
A quick overview of the assets within the portfolio, its performance and main metrics.
The portfolio consists of 5 asset classes.
Name / Ticker | Type | Currency | Inception | Weight |
---|---|---|---|---|
S&P 500 (US Large Cap) SP500.X | Asset Class | USD | Jan 31, 1871 | 25% |
Gold GOLD.X | Asset Class | USD | Dec 30, 1791 | 20% |
Intermediate-Term Treasury MTTREASURY.X | Asset Class | USD | Dec 30, 1870 | 16% |
US Corporate Bonds CORPBONDS.X | Asset Class | USD | Dec 30, 1870 | 24% |
Nasdaq-100 NASDAQ.X | Asset Class | USD | Feb 5, 1971 | 15% |
The backtest spans over a period of 54 years. With an annual return of 9.89% for Aim Ways Shield Strategy: Simplified Edition, the cumulative return over that period amounts to 15892%.
Portfolio Score | Aim Ways Shield Strategy: Simplified Edition |
---|---|
Portfolio Score |
Returns | Aim Ways Shield Strategy: Simplified Edition |
---|---|
Month-to-Date | 1.51% |
Year-to-Date | 16.81% |
3M | 3.27% |
6M | 9.14% |
Annualized Return (3Y) | 6.33% |
Annualized Return (5Y) | 10.15% |
Annualized Return (10Y) | 8.73% |
Annualized Return (20Y) | 8.59% |
Annualized Return (All, 53.8Y) | 9.89% |
Risk | Aim Ways Shield Strategy: Simplified Edition |
---|---|
Annual Volatility | 8.41% |
Max Drawdown | -24.45% |
Sharpe Ratio | 1.16 |
Sortino Ratio | 1.68 |
Adjusted Sortino Ratio | 1.19 |
With a projected annual return (CAGR) of 9.89% and an initial investment of $10,000, Aim Ways Shield Strategy: Simplified Edition would have the following projected capital growth over the next 50 years.
Year | Starting Capital | Ending Capital | Total Gain | Avg Monthly Gain | Cumulative Return |
---|---|---|---|---|---|
$10,000 | $10,989 | $989 | $82 | 9.9% | |
5 | $16,025 | $17,610 | $1,585 | $132 | 76.1% |
10 | $25,679 | $28,219 | $2,540 | $212 | 182% |
15 | $41,150 | $45,220 | $4,070 | $339 | 352% |
20 | $65,942 | $72,464 | $6,522 | $543 | 625% |
50 | $1,116,628 | $1,227,063 | $110,435 | $9,203 | 12,171% |
A detailed look at the returns of the portfolio.
Portfolio | All (53.8Y) | 20Y | 10Y | 5Y | 3Y | 1Y |
---|---|---|---|---|---|---|
Aim Ways Shield Strategy: Simplified Edition | 9.89% | 8.59% | 8.73% | 10.15% | 6.33% | 22.38% |
Year | Aim Ways Shield Strategy: Simplified Edition |
---|---|
1971 | 9.92% |
1972 | 18.87% |
1973 | 6.84% |
1974 | 0.94% |
1975 | 12.71% |
1976 | 15.57% |
1977 | 4.91% |
1978 | 11.42% |
1979 | 36.91% |
1980 | 15.84% |
Portfolio | Positive Years | Negative Years | Positive Ratio | Best Return Years | Worst Return Years |
Aim Ways Shield Strategy: Simplified Edition | 46 | 8 | 85.19% | 54 | 54 |
Let's analyze how much risk the portfoliohas.
A drawdown represents the period of decline an investor experiences between a portfolio's peak (new high) and its subsequent low, also known as the valley (before it begins to recover). The table below highlights the five largest drawdowns encountered by the portfolio.
Drawdown period | Recovery period | Total | |||||
---|---|---|---|---|---|---|---|
Max drawdown | Start | Valley | # Months | End | # Months | # Months | Chart |
-24.45% | 2008-05-21 | 2008-11-20 | 6 | 2009-10-07 | 11 | 17 | |
-20.67% | 2021-12-28 | 2022-10-14 | 10 | 2023-12-13 | 14 | 24 | |
-19.91% | 2000-03-27 | 2002-07-23 | 28 | 2003-10-21 | 15 | 43 | |
-17.62% | 1980-01-22 | 1980-03-27 | 2 | 1980-09-04 | 5 | 7 | |
-17.6% | 2020-02-20 | 2020-03-20 | 1 | 2020-05-29 | 2 | 3 | |
-17.03% | 1974-03-25 | 1974-09-26 | 6 | 1975-05-12 | 8 | 14 | |
-15.62% | 1987-08-26 | 1987-10-26 | 2 | 1989-05-12 | 19 | 21 | |
-15.48% | 1980-11-21 | 1982-03-15 | 16 | 1982-09-03 | 6 | 21 | |
-10.23% | 1973-06-06 | 1973-11-26 | 6 | 1974-01-24 | 2 | 8 | |
-9.63% | 1998-07-21 | 1998-08-31 | 1 | 1998-11-06 | 2 | 4 |
Aim Ways Shield Strategy: Simplified Edition took approximately 20 months on average to recover from major drawdowns of 20% or more. The largest drawdown reached -24.45% and the longest drawdown period lasted 43 months.