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The Aim Ways Shield Strategy: World Edition, is an adaptation of the original Aim Ways Shield Strategy, with fewer assets, longer historical backtest, and a more globally diversified portfolio compared to the original US-centric approach. The following changes where made:
The backtesting period is limited by the inception date of MSCI World (WORLD.X): Dec 31, 1969.
A quick overview of the assets within the portfolio, its performance and main metrics.
The portfolio consists of 4 asset classes.
| Name / Ticker | Type | Currency | Inception | Weight |
|---|---|---|---|---|
MSCI World WORLD.X | Asset Class | USD | Dec 31, 1969 | 42% |
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 | 22% |
The backtest spans over a period of 57 years. With an annual return of 9.08% for Aim Ways Shield Strategy: World Edition, the cumulative return over that period amounts to 13570%.
| Portfolio Score | Aim Ways Shield Strategy: World Edition |
|---|---|
| Portfolio Score |
| Returns | Aim Ways Shield Strategy: World Edition |
|---|---|
| Month-to-Date | -0.75% |
| Year-to-Date | 2.16% |
| 3M | -2.81% |
| 6M | 0.06% |
| Annualized Return (3Y) | 14.73% |
| Annualized Return (5Y) | 8.3% |
| Annualized Return (10Y) | 8.54% |
| Annualized Return (20Y) | 7.55% |
| Annualized Return (All, 56.6Y) | 9.08% |
| Risk | Aim Ways Shield Strategy: World Edition |
|---|---|
| Annual Volatility | 6.2% |
| Max Drawdown | -22.75% |
| Sharpe Ratio | 1.43 |
| Sortino Ratio | 2.11 |
| Adjusted Sortino Ratio | 1.49 |
With a projected annual return (CAGR) of 9.08% and an initial investment of $10,000, Aim Ways Shield Strategy: World 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 | $10,908 | $908 | $76 | 9.1% | |
| 5 | $15,443 | $16,845 | $1,402 | $117 | 68.4% |
| 10 | $23,848 | $26,013 | $2,165 | $180 | 160% |
| 15 | $36,828 | $40,172 | $3,344 | $279 | 302% |
| 20 | $56,873 | $62,037 | $5,164 | $430 | 520% |
| 50 | $771,359 | $841,398 | $70,039 | $5,837 | 8,314% |
A detailed look at the returns of the portfolio.
| Portfolio | All (56.6Y) | 20Y | 10Y | 5Y | 3Y | 1Y |
|---|---|---|---|---|---|---|
| Aim Ways Shield Strategy: World Edition | 9.08% | 7.55% | 8.54% | 8.3% | 14.73% | 14.19% |
| Year | Aim Ways Shield Strategy: World Edition |
|---|---|
| 1970 | 6.67% |
| 1971 | 14.7% |
| 1972 | 20.25% |
| 1973 | 9.2% |
| 1974 | 2.14% |
| 1975 | 12.22% |
| 1976 | 11.28% |
| 1977 | 5.61% |
| 1978 | 14.6% |
| 1979 | 32.78% |
| Portfolio | Positive Years | Negative Years | Positive Ratio | Best Return Years | Worst Return Years |
| Aim Ways Shield Strategy: World Edition | 48 | 9 | 84.21% | 57 | 57 |
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 |
| -22.75% | 2008-05-22 | 2008-11-03 | 5 | 2009-11-16 | 12 | 18 | |
| -19.89% | 2021-11-10 | 2022-10-14 | 11 | 2023-12-27 | 14 | 26 | |
| -18.72% | 2020-02-24 | 2020-03-20 | 1 | 2020-06-08 | 3 | 3 | |
| -17.03% | 1974-02-27 | 1974-09-26 | 7 | 1975-04-01 | 6 | 13 | |
| -15.84% | 1980-01-22 | 1980-03-31 | 2 | 1980-09-10 | 5 | 8 | |
| -13.63% | 1980-12-02 | 1982-03-15 | 15 | 1982-09-07 | 6 | 21 | |
| -12.36% | 1973-07-09 | 1973-11-26 | 5 | 1974-02-21 | 3 | 7 | |
| -9.83% | 2018-01-29 | 2018-12-24 | 11 | 2019-04-10 | 4 | 14 | |
| -9.49% | 2000-09-01 | 2002-10-17 | 26 | 2003-05-12 | 7 | 32 | |
| -9.23% | 2015-05-18 | 2016-01-20 | 8 | 2016-04-19 | 3 | 11 | |
Aim Ways Shield Strategy: World Edition took approximately 18 months on average to recover from major drawdowns of 20% or more. The largest drawdown reached -22.75% and the longest drawdown period lasted 32 months.