Consolidated Returns as of 28 February 2025
Managing the Euro Stocks/Bonds 60/40 Portfolio with a yearly rebalancing, you would have obtained a 6.03% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 6.33%.
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.
At fixed time intervals:
- Yearly: Jan 1st
- Half Yearly: Jan 1st, Jul 1st
- Quarterly: Jan 1st, Apr 1st, Jul 1st, Oct 1st
Portfolio Returns as of Feb 28, 2025
Implementing different rebalancing strategies, the Euro Stocks/Bonds 60/40 Portfolio guaranteed the following returns.
Portfolio returns are calculated in EUR, assuming:
- No fees or capital gain taxes
- the reinvestment of dividends, if existing
| Return (%) and number of rebalances as of Feb 28, 2025 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~38Y) |
|||||
| No Rebalancing | 12.24 | (0) | 7.85 | (0) | 4.80 | (0) | 6.03 | (0) | 5.71 | (0) |
| Yearly Rebalancing | 11.00 | (1) | 7.20 | (5) | 4.58 | (10) | 6.42 | (30) | 6.09 | (38) |
| Half Yearly Rebalancing | 11.10 | (2) | 7.29 | (10) | 4.68 | (20) | 6.33 | (60) | 6.01 | (76) |
| Quarterly Rebalancing | 11.12 | (4) | 7.45 | (20) | 4.75 | (40) | 6.41 | (120) | 6.07 | (151) |
| 5% Tolerance per asset | 11.00 | (1) | 7.41 | (3) | 4.58 | (3) | 6.33 | (16) | 5.99 | (19) |
| 10% Tolerance per asset | 11.00 | (1) | 7.83 | (2) | 4.78 | (2) | 6.49 | (7) | 6.08 | (7) |
In order to have complete information about the portfolio, please refer to the Euro Stocks/Bonds 60/40 Portfolio: ETF allocation and returns page.
Performances as of Feb 28, 2025
Historical returns and stats of Euro Stocks/Bonds 60/40 Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 5.71 | (0) | 10.03 | 0.57 | -33.76 | 0.17 |
| Yearly Rebalancing | 6.09 | (38) | 10.09 | 0.60 | -30.38 | 0.20 |
| Half Yearly Rebalancing | 6.01 | (76) | 10.11 | 0.59 | -31.62 | 0.19 |
| Quarterly Rebalancing | 6.07 | (151) | 10.20 | 0.59 | -32.29 | 0.19 |
| 5% Tolerance per asset | 5.99 | (19) | 10.31 | 0.58 | -32.52 | 0.18 |
| 10% Tolerance per asset | 6.08 | (7) | 10.41 | 0.58 | -31.88 | 0.19 |
Drawdowns as of Feb 28, 2025
Historical Drawdowns of Euro Stocks/Bonds 60/40 Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-33.76
Sep 2000 - Jan 2006
|
-30.38
Sep 2000 - Jul 2005
|
-31.62
Jun 2007 - Apr 2013
|
-32.29
Jun 2007 - Apr 2013
|
-32.52
Jun 2007 - May 2013
|
-31.88
Jun 2007 - May 2013
|
|
-31.67
Jun 2007 - Sep 2013
|
-30.36
Jun 2007 - Jan 2013
|
-31.47
Sep 2000 - Sep 2005
|
-30.65
Sep 2000 - Jul 2005
|
-30.80
Sep 2000 - Jul 2005
|
-29.71
Sep 2000 - Jun 2005
|
|
-19.30
Jan 2022 - Jul 2023
|
-19.11
Jan 2022 - Dec 2023
|
-19.10
Jan 2022 - Dec 2023
|
-19.12
Jan 2022 - Dec 2023
|
-19.24
Jan 2022 - Dec 2023
|
-19.24
Jan 2022 - Jul 2023
|
|
-16.01
Jan 2020 - Feb 2021
|
-15.93
Jan 2020 - Feb 2021
|
-15.93
Jan 2020 - Dec 2020
|
-15.93
Jan 2020 - Dec 2020
|
-17.08
Jan 2020 - Mar 2021
|
-18.17
Jan 2020 - Mar 2021
|
|
-15.17
Sep 1987 - Oct 1988
|
-15.43
Sep 1987 - Oct 1988
|
-15.43
Sep 1987 - Oct 1988
|
-15.32
Sep 1987 - Oct 1988
|
-15.58
Sep 1987 - Oct 1988
|
-15.17
Sep 1987 - Oct 1988
|
| 5 Worst Drawdowns - Average | |||||
| -23.18 | -22.24 | -22.71 | -22.66 | -23.04 | -22.83 |
| 10 Worst Drawdowns - Average | |||||
| -17.42 | -17.04 | -17.14 | -17.09 | -17.48 | -17.54 |
For a deeper insight, please refer to the Euro Stocks/Bonds 60/40 Portfolio: ETF allocation and returns page.
