Total Bond US To GBP Portfolio: Rebalancing Strategy

Data Source: from January 1871 to July 2025
Consolidated Returns as of 31 July 2025

Managing the Total Bond US To GBP Portfolio with a yearly rebalancing, you would have obtained a 4.73% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 4.73%.

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 Jul 31, 2025

Implementing different rebalancing strategies, the Total Bond US To GBP Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1871.

Portfolio returns are calculated in GBP, 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 GBP PORTFOLIO RETURNS
Period: January 1871 - July 2025
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Jul 31, 2025
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~155Y)
No Rebalancing 0.23 (0) -1.37 (0) 3.07 (0) 4.73 (0) 5.44 (0)
Yearly Rebalancing 0.23 (1) -1.37 (5) 3.07 (10) 4.73 (30) 5.44 (155)
Half Yearly Rebalancing 0.23 (2) -1.37 (10) 3.07 (20) 4.73 (60) 5.44 (310)
Quarterly Rebalancing 0.23 (4) -1.37 (20) 3.07 (40) 4.73 (120) 5.44 (619)
5% Tolerance per asset 0.23 (0) -1.37 (0) 3.07 (0) 4.73 (0) 5.44 (0)
10% Tolerance per asset 0.23 (0) -1.37 (0) 3.07 (0) 4.73 (0) 5.44 (0)

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

Performances as of Jul 31, 2025

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

TOTAL BOND US TO GBP PORTFOLIO PERFORMANCES
Period: January 1871 - July 2025
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 5.44 (0) 6.98 0.78 -29.23 0.19
Yearly Rebalancing 5.44 (155) 6.98 0.78 -29.23 0.19
Half Yearly Rebalancing 5.44 (310) 6.98 0.78 -29.23 0.19
Quarterly Rebalancing 5.44 (619) 6.98 0.78 -29.23 0.19
5% Tolerance per asset 5.44 (0) 6.98 0.78 -29.23 0.19
10% Tolerance per asset 5.44 (0) 6.98 0.78 -29.23 0.19
(*) Since Jan 1871 (~155 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Jul 31, 2025

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

TOTAL BOND US TO GBP PORTFOLIO DRAWDOWNS
Period: January 1871 - July 2025
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-29.23
Nov 1976 - Oct 1981
-29.23
Nov 1976 - Oct 1981
-29.23
Nov 1976 - Oct 1981
-29.23
Nov 1976 - Oct 1981
-29.23
Nov 1976 - Oct 1981
-29.23
Nov 1976 - Oct 1981
-22.89
Dec 1986 - May 1989
-22.89
Dec 1986 - May 1989
-22.89
Dec 1986 - May 1989
-22.89
Dec 1986 - May 1989
-22.89
Dec 1986 - May 1989
-22.89
Dec 1986 - May 1989
-18.48
May 1932 - Feb 1938
-18.48
May 1932 - Feb 1938
-18.48
May 1932 - Feb 1938
-18.48
May 1932 - Feb 1938
-18.48
May 1932 - Feb 1938
-18.48
May 1932 - Feb 1938
-16.08
Jul 2020 - In progress
-16.08
Jul 2020 - In progress
-16.08
Jul 2020 - In progress
-16.08
Jul 2020 - In progress
-16.08
Jul 2020 - In progress
-16.08
Jul 2020 - In progress
-15.27
Mar 1985 - Aug 1986
-15.27
Mar 1985 - Aug 1986
-15.27
Mar 1985 - Aug 1986
-15.27
Mar 1985 - Aug 1986
-15.27
Mar 1985 - Aug 1986
-15.27
Mar 1985 - Aug 1986
5 Worst Drawdowns - Average
-20.39 -20.39 -20.39 -20.39 -20.39 -20.39
10 Worst Drawdowns - Average
-17.09 -17.09 -17.09 -17.09 -17.09 -17.09

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