Emerging Markets Stocks Portfolio: Rebalancing Strategy

Data Source: from January 1976 to January 2025
Consolidated Returns as of 31 January 2025

Managing the Emerging Markets Stocks Portfolio with a yearly rebalancing, you would have obtained a 5.65% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 5.65%.

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 Jan 31, 2025

Implementing different rebalancing strategies, the Emerging Markets Stocks Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1976.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
EMERGING MARKETS STOCKS PORTFOLIO RETURNS
Period: January 1976 - January 2025
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Jan 31, 2025
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~49Y)
No Rebalancing 13.94 (0) 2.51 (0) 3.17 (0) 5.65 (0) 7.46 (0)
Yearly Rebalancing 13.94 (1) 2.51 (5) 3.17 (10) 5.65 (30) 7.46 (50)
Half Yearly Rebalancing 13.94 (2) 2.51 (10) 3.17 (20) 5.65 (60) 7.46 (99)
Quarterly Rebalancing 13.94 (4) 2.51 (20) 3.17 (40) 5.65 (120) 7.46 (197)
5% Tolerance per asset 13.94 (0) 2.51 (0) 3.17 (0) 5.65 (0) 7.46 (0)
10% Tolerance per asset 13.94 (0) 2.51 (0) 3.17 (0) 5.65 (0) 7.46 (0)

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

Performances as of Jan 31, 2025

Historical returns and stats of Emerging Markets Stocks Portfolio, after implementing different rebalancing strategies.

EMERGING MARKETS STOCKS PORTFOLIO PERFORMANCES
Period: January 1976 - January 2025
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 7.46 (0) 23.84 0.31 -60.44 0.12
Yearly Rebalancing 7.46 (50) 23.84 0.31 -60.44 0.12
Half Yearly Rebalancing 7.46 (99) 23.84 0.31 -60.44 0.12
Quarterly Rebalancing 7.46 (197) 23.84 0.31 -60.44 0.12
5% Tolerance per asset 7.46 (0) 23.84 0.31 -60.44 0.12
10% Tolerance per asset 7.46 (0) 23.84 0.31 -60.44 0.12
(*) Since Jan 1976 (~49 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Jan 31, 2025

Historical Drawdowns of Emerging Markets Stocks Portfolio, after implementing different rebalancing strategies.

EMERGING MARKETS STOCKS PORTFOLIO DRAWDOWNS
Period: January 1976 - January 2025
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-60.44
Nov 2007 - Oct 2017
-60.44
Nov 2007 - Oct 2017
-60.44
Nov 2007 - Oct 2017
-60.44
Nov 2007 - Oct 2017
-60.44
Nov 2007 - Oct 2017
-60.44
Nov 2007 - Oct 2017
-55.33
Mar 1987 - Sep 1989
-55.33
Mar 1987 - Sep 1989
-55.33
Mar 1987 - Sep 1989
-55.33
Mar 1987 - Sep 1989
-55.33
Mar 1987 - Sep 1989
-55.33
Mar 1987 - Sep 1989
-55.05
Dec 1980 - May 1986
-55.05
Dec 1980 - May 1986
-55.05
Dec 1980 - May 1986
-55.05
Dec 1980 - May 1986
-55.05
Dec 1980 - May 1986
-55.05
Dec 1980 - May 1986
-54.22
Feb 1994 - Jan 2004
-54.22
Feb 1994 - Jan 2004
-54.22
Feb 1994 - Jan 2004
-54.22
Feb 1994 - Jan 2004
-54.22
Feb 1994 - Jan 2004
-54.22
Feb 1994 - Jan 2004
-36.52
Jul 2021 - In progress
-36.52
Jul 2021 - In progress
-36.52
Jul 2021 - In progress
-36.52
Jul 2021 - In progress
-36.52
Jul 2021 - In progress
-36.52
Jul 2021 - In progress
5 Worst Drawdowns - Average
-52.31 -52.31 -52.31 -52.31 -52.31 -52.31
10 Worst Drawdowns - Average
-37.37 -37.37 -37.37 -37.37 -37.37 -37.37

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