Consolidated Returns as of 31 August 2024
Managing the European Stocks Portfolio with a yearly rebalancing, you would have obtained a 7.11% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 7.11%.
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 Aug 31, 2024
Implementing different rebalancing strategies, the European Stocks Portfolio guaranteed the following returns.
Portfolio returns are calculated in USD, assuming:
- No fees or capital gain taxes
- the reinvestment of dividends, if existing
| Return (%) and number of rebalances as of Aug 31, 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~55Y) |
|||||
| No Rebalancing | 20.25 | (0) | 9.66 | (0) | 5.44 | (0) | 7.11 | (0) | 8.87 | (0) |
| Yearly Rebalancing | 20.25 | (1) | 9.66 | (5) | 5.44 | (10) | 7.11 | (30) | 8.87 | (55) |
| Half Yearly Rebalancing | 20.25 | (2) | 9.66 | (10) | 5.44 | (20) | 7.11 | (60) | 8.87 | (110) |
| Quarterly Rebalancing | 20.25 | (4) | 9.66 | (20) | 5.44 | (40) | 7.11 | (120) | 8.87 | (219) |
| 5% Tolerance per asset | 20.25 | (0) | 9.66 | (0) | 5.44 | (0) | 7.11 | (0) | 8.87 | (0) |
| 10% Tolerance per asset | 20.25 | (0) | 9.66 | (0) | 5.44 | (0) | 7.11 | (0) | 8.87 | (0) |
In order to have complete information about the portfolio, please refer to the European Stocks Portfolio: ETF allocation and returns page.
Performances as of Aug 31, 2024
Historical returns and stats of European Stocks Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 8.87 | (0) | 17.35 | 0.51 | -59.77 | 0.15 |
| Yearly Rebalancing | 8.87 | (55) | 17.35 | 0.51 | -59.77 | 0.15 |
| Half Yearly Rebalancing | 8.87 | (110) | 17.35 | 0.51 | -59.77 | 0.15 |
| Quarterly Rebalancing | 8.87 | (219) | 17.35 | 0.51 | -59.77 | 0.15 |
| 5% Tolerance per asset | 8.87 | (0) | 17.35 | 0.51 | -59.77 | 0.15 |
| 10% Tolerance per asset | 8.87 | (0) | 17.35 | 0.51 | -59.77 | 0.15 |
Drawdowns as of Aug 31, 2024
Historical Drawdowns of European Stocks Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-59.77
Nov 2007 - Apr 2014
|
-59.77
Nov 2007 - Apr 2014
|
-59.77
Nov 2007 - Apr 2014
|
-59.77
Nov 2007 - Apr 2014
|
-59.77
Nov 2007 - Apr 2014
|
-59.77
Nov 2007 - Apr 2014
|
|
-45.88
Apr 2000 - Dec 2004
|
-45.88
Apr 2000 - Dec 2004
|
-45.88
Apr 2000 - Dec 2004
|
-45.88
Apr 2000 - Dec 2004
|
-45.88
Apr 2000 - Dec 2004
|
-45.88
Apr 2000 - Dec 2004
|
|
-38.16
Jan 1973 - Jun 1975
|
-38.16
Jan 1973 - Jun 1975
|
-38.16
Jan 1973 - Jun 1975
|
-38.16
Jan 1973 - Jun 1975
|
-38.16
Jan 1973 - Jun 1975
|
-38.16
Jan 1973 - Jun 1975
|
|
-33.23
Dec 1980 - Apr 1983
|
-33.23
Dec 1980 - Apr 1983
|
-33.23
Dec 1980 - Apr 1983
|
-33.23
Dec 1980 - Apr 1983
|
-33.23
Dec 1980 - Apr 1983
|
-33.23
Dec 1980 - Apr 1983
|
|
-30.98
Sep 2021 - Dec 2023
|
-30.98
Sep 2021 - Dec 2023
|
-30.98
Sep 2021 - Dec 2023
|
-30.98
Sep 2021 - Dec 2023
|
-30.98
Sep 2021 - Dec 2023
|
-30.98
Sep 2021 - Dec 2023
|
| 5 Worst Drawdowns - Average | |||||
| -41.60 | -41.60 | -41.60 | -41.60 | -41.60 | -41.60 |
| 10 Worst Drawdowns - Average | |||||
| -32.48 | -32.48 | -32.48 | -32.48 | -32.48 | -32.48 |
For a deeper insight, please refer to the European Stocks Portfolio: ETF allocation and returns page.
