Total Bond US To EUR Portfolio: Rebalancing Strategy

Data Source: from August 1953 to January 2025
Consolidated Returns as of 31 January 2025

Managing the Total Bond US To EUR Portfolio with a yearly rebalancing, you would have obtained a 4.86% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 4.86%.

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 Total Bond US To EUR Portfolio 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)
TOTAL BOND US TO EUR PORTFOLIO RETURNS
Period: August 1953 - 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
(~72Y)
No Rebalancing 6.52 (0) 0.48 (0) 1.76 (0) 4.86 (0) 5.66 (0)
Yearly Rebalancing 6.52 (1) 0.48 (5) 1.76 (10) 4.86 (30) 5.66 (72)
Half Yearly Rebalancing 6.52 (2) 0.48 (10) 1.76 (20) 4.86 (60) 5.66 (143)
Quarterly Rebalancing 6.52 (4) 0.48 (20) 1.76 (40) 4.86 (120) 5.66 (286)
5% Tolerance per asset 6.52 (0) 0.48 (0) 1.76 (0) 4.86 (0) 5.66 (0)
10% Tolerance per asset 6.52 (0) 0.48 (0) 1.76 (0) 4.86 (0) 5.66 (0)

In order to have complete information about the portfolio, please refer to the Total Bond US To EUR Portfolio: ETF allocation and returns page.

Performances as of Jan 31, 2025

Historical returns and stats of Total Bond US To EUR Portfolio, after implementing different rebalancing strategies.

TOTAL BOND US TO EUR PORTFOLIO PERFORMANCES
Period: August 1953 - 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 5.66 (0) 9.49 0.60 -28.14 0.20
Yearly Rebalancing 5.66 (72) 9.49 0.60 -28.14 0.20
Half Yearly Rebalancing 5.66 (143) 9.49 0.60 -28.14 0.20
Quarterly Rebalancing 5.66 (286) 9.49 0.60 -28.14 0.20
5% Tolerance per asset 5.66 (0) 9.49 0.60 -28.14 0.20
10% Tolerance per asset 5.66 (0) 9.49 0.60 -28.14 0.20
(*) Since Aug 1953 (~72 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Jan 31, 2025

Historical Drawdowns of Total Bond US To EUR Portfolio, after implementing different rebalancing strategies.

TOTAL BOND US TO EUR PORTFOLIO DRAWDOWNS
Period: August 1953 - January 2025
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-28.14
Jun 1985 - May 1989
-28.14
Jun 1985 - May 1989
-28.14
Jun 1985 - May 1989
-28.14
Jun 1985 - May 1989
-28.14
Jun 1985 - May 1989
-28.14
Jun 1985 - May 1989
-27.21
Feb 2002 - May 2010
-27.21
Feb 2002 - May 2010
-27.21
Feb 2002 - May 2010
-27.21
Feb 2002 - May 2010
-27.21
Feb 2002 - May 2010
-27.21
Feb 2002 - May 2010
-24.04
Apr 1971 - Aug 1975
-24.04
Apr 1971 - Aug 1975
-24.04
Apr 1971 - Aug 1975
-24.04
Apr 1971 - Aug 1975
-24.04
Apr 1971 - Aug 1975
-24.04
Apr 1971 - Aug 1975
-18.43
Sep 1977 - Dec 1980
-18.43
Sep 1977 - Dec 1980
-18.43
Sep 1977 - Dec 1980
-18.43
Sep 1977 - Dec 1980
-18.43
Sep 1977 - Dec 1980
-18.43
Sep 1977 - Dec 1980
-15.64
Feb 1994 - Jan 1996
-15.64
Feb 1994 - Jan 1996
-15.64
Feb 1994 - Jan 1996
-15.64
Feb 1994 - Jan 1996
-15.64
Feb 1994 - Jan 1996
-15.64
Feb 1994 - Jan 1996
5 Worst Drawdowns - Average
-22.69 -22.69 -22.69 -22.69 -22.69 -22.69
10 Worst Drawdowns - Average
-18.27 -18.27 -18.27 -18.27 -18.27 -18.27

For a deeper insight, please refer to the Total Bond US To EUR Portfolio: ETF allocation and returns page.