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Instant Rebalanced Portfolio Builder: Biotech & Pharma Stocks

Use the Instant Rebalanced Portfolio Builder: Biotech & Pharma Stocks to compute the 10-year annualized returns of portfolios of rebalanced randomly selected biotech and pharmaceutical stocks with ten or more years of price data at Yahoo! Finance. See the 53 pharmaceutical and biotech stocks.

For each of ten years the rebalancing calculator randomly picks the number of stocks selected on the input form below using the PHP mt_rand() function.

For the first year a total of $10,000 is invested across all stocks. The stocks are equally weighted in the portfolio. For example, each stock in a 20-stock portfolio is weighted at five percent of the portfolio, or $500. The total value of the portfolio is computed for the year by summing the current values (number shares * current price) of all stocks. The number of shares is the amount invested per stock divided by the year's starting price. The calculator assumes all stocks are sold at the end of the year and the total proceeds are invested the next year in a new group of randomly selected stocks.

This procedure is executed for years one through ten. So for a 20-stock portfolio, 200 stocks would be selected at random during the 10 years. Within a year all stocks are unique, but between years the same stock can appear more than once. The value of the portfolio at the end of year ten is the value used to compute the annualized return of the portfolio assuming an $10,000 initial investment.

To run the calculator, select the number of stocks in a portfolio and the number of portfolios to generate. The calculator displays the final value and its annualized return for each portfolio in a table.

And the 10-year annualized returns of the SPDR S&P 500 ETF (SPY) and the Health Care Select Sector SPDR Fund (XLV) are displayed for comparison.

Also, compare the calculator results with those from the Instant Portfolio Builder: Biotech & Pharma Stocks which assumes the initial set of stocks remains the same for a 10-year period.

All returns are based on weekly closing prices with dividends reinvested from Yahoo! Finance.

Instant Rebalanced Portfolio Builder: Biotech & Pharma Stocks
Number of Stocks in Portfolio 10    20    
Number of Portfolios Generated 10    20    50 

See more instant rebalanced portfolio builders: Dividend Stocks Nasdaq-100 Technology Stocks Utilities Stocks 

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