Ray Dalio All Weather Portfolio To EUR: Rebalancing Strategy

Data Source: from August 1953 to November 2024
Consolidated Returns as of 30 November 2024

Managing the Ray Dalio All Weather Portfolio To EUR with a yearly rebalancing, you would have obtained a 10.77% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 8.17%.

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 Nov 30, 2024

Implementing different rebalancing strategies, the Ray Dalio All Weather Portfolio To EUR guaranteed the following returns.

According to the available data source, we assume we built the portfolio on August 1953.

Portfolio returns are calculated in EUR, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
  • the adjustment for actual currency exchange rates (simulation derived from original US returns)
RAY DALIO ALL WEATHER PORTFOLIO TO EUR RETURNS
Period: August 1953 - November 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Nov 30, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~71Y)
No Rebalancing 37.30 (0) 15.01 (0) 13.57 (0) 10.77 (0) 9.68 (0)
Yearly Rebalancing 19.44 (1) 5.44 (5) 6.68 (10) 8.27 (30) 8.29 (71)
Half Yearly Rebalancing 19.00 (2) 5.44 (10) 6.74 (20) 8.17 (60) 8.21 (142)
Quarterly Rebalancing 19.06 (4) 5.58 (20) 6.86 (40) 8.21 (120) 8.18 (285)
5% Tolerance per asset 19.62 (0) 5.52 (3) 6.90 (7) 8.08 (18) 8.22 (39)
10% Tolerance per asset 19.53 (0) 5.86 (2) 7.13 (3) 8.27 (6) 8.35 (14)

In order to have complete information about the portfolio, please refer to the Ray Dalio All Weather Portfolio To EUR: ETF allocation and returns page.

Performances as of Nov 30, 2024

Historical returns and stats of Ray Dalio All Weather Portfolio To EUR, after implementing different rebalancing strategies.

RAY DALIO ALL WEATHER PORTFOLIO TO EUR PERFORMANCES
Period: August 1953 - November 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 9.68 (0) 13.14 0.74 -46.64 0.21
Yearly Rebalancing 8.29 (71) 9.95 0.83 -23.42 0.35
Half Yearly Rebalancing 8.21 (142) 9.89 0.83 -22.48 0.37
Quarterly Rebalancing 8.18 (285) 9.89 0.83 -22.10 0.37
5% Tolerance per asset 8.22 (39) 9.94 0.83 -22.11 0.37
10% Tolerance per asset 8.35 (14) 10.13 0.82 -23.89 0.35
(*) Since Aug 1953 (~71 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Nov 30, 2024

Historical Drawdowns of Ray Dalio All Weather Portfolio To EUR, after implementing different rebalancing strategies.

RAY DALIO ALL WEATHER PORTFOLIO TO EUR DRAWDOWNS
Period: August 1953 - November 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-46.64
Sep 2000 - Jul 2012
-23.42
Jun 1986 - Jan 1989
-22.48
Jun 1986 - Jan 1989
-22.10
Jun 1986 - Jan 1989
-22.11
Jun 1986 - Jan 1989
-23.89
Jun 1986 - Jan 1989
-30.61
Jan 1973 - Feb 1976
-20.14
Sep 1989 - Apr 1991
-19.87
Sep 1989 - Apr 1991
-19.57
Sep 1989 - Mar 1991
-19.59
Sep 1989 - Mar 1991
-21.85
Nov 2000 - Nov 2008
-29.05
Sep 1987 - Jan 1989
-18.09
Nov 2000 - Sep 2005
-19.43
Nov 2000 - Nov 2005
-18.58
Nov 2000 - Nov 2005
-19.53
Nov 2000 - Nov 2005
-18.75
Sep 1989 - Apr 1991
-27.79
Sep 1989 - May 1991
-16.57
Feb 1994 - Nov 1995
-16.52
Feb 1994 - Nov 1995
-16.59
Feb 1994 - Nov 1995
-16.81
Feb 1994 - Nov 1995
-16.97
Feb 1994 - Nov 1995
-22.83
Dec 1968 - Mar 1971
-14.85
Jan 2022 - Sep 2024
-15.23
Feb 1974 - Jun 1975
-15.41
Jan 2022 - Sep 2024
-14.70
Jan 2022 - Sep 2024
-14.32
Dec 1968 - Jan 1971
5 Worst Drawdowns - Average
-31.39 -18.61 -18.71 -18.45 -18.55 -19.16
10 Worst Drawdowns - Average
-23.23 -15.44 -15.58 -15.55 -15.55 -15.81

For a deeper insight, please refer to the Ray Dalio All Weather Portfolio To EUR: ETF allocation and returns page.