Consolidated Returns as of 30 November 2024
Managing the Stocks/Bonds 20/80 To EUR Portfolio with a yearly rebalancing, you would have obtained a 10.20% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 6.39%.
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 Nov 30, 2024
Implementing different rebalancing strategies, the Stocks/Bonds 20/80 To EUR Portfolio guaranteed the following returns.
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)
| Return (%) and number of rebalances as of Nov 30, 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~71Y) |
|||||
| No Rebalancing | 36.27 | (0) | 14.50 | (0) | 13.08 | (0) | 10.20 | (0) | 9.10 | (0) |
| Yearly Rebalancing | 15.80 | (1) | 3.90 | (5) | 5.40 | (10) | 6.48 | (30) | 7.07 | (71) |
| Half Yearly Rebalancing | 15.55 | (2) | 3.86 | (10) | 5.37 | (20) | 6.39 | (60) | 7.04 | (142) |
| Quarterly Rebalancing | 15.47 | (4) | 3.88 | (20) | 5.40 | (40) | 6.45 | (120) | 7.04 | (285) |
| 5% Tolerance per asset | 15.99 | (0) | 4.01 | (2) | 5.50 | (3) | 6.50 | (10) | 7.07 | (21) |
| 10% Tolerance per asset | 16.89 | (0) | 4.38 | (1) | 5.75 | (2) | 6.50 | (3) | 7.07 | (6) |
In order to have complete information about the portfolio, please refer to the Stocks/Bonds 20/80 To EUR Portfolio: ETF allocation and returns page.
Performances as of Nov 30, 2024
Historical returns and stats of Stocks/Bonds 20/80 To EUR Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 9.10 | (0) | 12.24 | 0.74 | -43.99 | 0.21 |
| Yearly Rebalancing | 7.07 | (71) | 9.50 | 0.74 | -27.86 | 0.25 |
| Half Yearly Rebalancing | 7.04 | (142) | 9.47 | 0.74 | -27.16 | 0.26 |
| Quarterly Rebalancing | 7.04 | (285) | 9.47 | 0.74 | -26.92 | 0.26 |
| 5% Tolerance per asset | 7.07 | (21) | 9.49 | 0.75 | -26.57 | 0.27 |
| 10% Tolerance per asset | 7.07 | (6) | 9.56 | 0.74 | -27.87 | 0.25 |
Drawdowns as of Nov 30, 2024
Historical Drawdowns of Stocks/Bonds 20/80 To EUR Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-43.99
Sep 2000 - Jul 2012
|
-27.86
Jul 1985 - May 1989
|
-27.16
Jul 1985 - May 1989
|
-26.92
Jul 1985 - May 1989
|
-26.57
Jul 1985 - May 1989
|
-27.87
Jul 1985 - May 1989
|
|
-29.55
Jan 1973 - Feb 1976
|
-25.83
Feb 2002 - May 2010
|
-26.21
Feb 2002 - May 2010
|
-25.97
Feb 2002 - May 2010
|
-25.59
Feb 2002 - May 2010
|
-26.84
Feb 2002 - May 2010
|
|
-28.71
Mar 1985 - Mar 1989
|
-22.16
Apr 1971 - Aug 1975
|
-21.99
Apr 1971 - Aug 1975
|
-22.06
Apr 1971 - Oct 1975
|
-22.36
Apr 1971 - Oct 1975
|
-21.78
Jan 1973 - Dec 1975
|
|
-27.03
Sep 1989 - May 1991
|
-19.25
Sep 1989 - Mar 1991
|
-19.23
Sep 1989 - Mar 1991
|
-19.24
Sep 1989 - Mar 1991
|
-19.07
Sep 1989 - Mar 1991
|
-19.82
Sep 1989 - Apr 1991
|
|
-16.74
Dec 1968 - Dec 1970
|
-16.68
Jan 1977 - Apr 1980
|
-16.74
Jan 1977 - Apr 1980
|
-16.68
Jan 1977 - Apr 1980
|
-16.56
Jan 1977 - Apr 1980
|
-16.46
Jan 1977 - Jun 1979
|
| 5 Worst Drawdowns - Average | |||||
| -29.20 | -22.36 | -22.27 | -22.18 | -22.03 | -22.55 |
| 10 Worst Drawdowns - Average | |||||
| -21.86 | -16.64 | -16.57 | -16.55 | -16.40 | -16.81 |
For a deeper insight, please refer to the Stocks/Bonds 20/80 To EUR Portfolio: ETF allocation and returns page.
