UK Stocks Portfolio: Rebalancing Strategy

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

Managing the UK Stocks Portfolio with a yearly rebalancing, you would have obtained a 7.27% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 7.27%.

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 UK Stocks 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

UK STOCKS 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	14.53	(0)	13.31	(0)	7.09	(0)	7.27	(0)	7.18	(0)
Yearly Rebalancing	14.53	(1)	13.31	(5)	7.09	(10)	7.27	(30)	7.18	(155)
Half Yearly Rebalancing	14.53	(2)	13.31	(10)	7.09	(20)	7.27	(60)	7.18	(310)
Quarterly Rebalancing	14.53	(4)	13.31	(20)	7.09	(40)	7.27	(120)	7.18	(619)
5% Tolerance per asset	14.53	(0)	13.31	(0)	7.09	(0)	7.27	(0)	7.18	(0)
10% Tolerance per asset	14.53	(0)	13.31	(0)	7.09	(0)	7.27	(0)	7.18	(0)

In order to have complete information about the portfolio, please refer to the UK Stocks Portfolio: ETF allocation and returns page.

Performances as of Jul 31, 2025

Historical returns and stats of UK Stocks Portfolio, after implementing different rebalancing strategies.

UK STOCKS 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	7.18	(0)	11.46	0.63	-64.43	0.11
Yearly Rebalancing	7.18	(155)	11.46	0.63	-64.43	0.11
Half Yearly Rebalancing	7.18	(310)	11.46	0.63	-64.43	0.11
Quarterly Rebalancing	7.18	(619)	11.46	0.63	-64.43	0.11
5% Tolerance per asset	7.18	(0)	11.46	0.63	-64.43	0.11
10% Tolerance per asset	7.18	(0)	11.46	0.63	-64.43	0.11

(*) Since Jan 1871 (~155 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Jul 31, 2025

Historical Drawdowns of UK Stocks Portfolio, after implementing different rebalancing strategies.

UK STOCKS 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%
-64.43 Sep 1972 - Apr 1976	-64.43 Sep 1972 - Apr 1976	-64.43 Sep 1972 - Apr 1976	-64.43 Sep 1972 - Apr 1976	-64.43 Sep 1972 - Apr 1976	-64.43 Sep 1972 - Apr 1976
-41.23 Nov 2007 - Oct 2012	-41.23 Nov 2007 - Oct 2012	-41.23 Nov 2007 - Oct 2012	-41.23 Nov 2007 - Oct 2012	-41.23 Nov 2007 - Oct 2012	-41.23 Nov 2007 - Oct 2012
-41.05 Sep 2000 - Jan 2006	-41.05 Sep 2000 - Jan 2006	-41.05 Sep 2000 - Jan 2006	-41.05 Sep 2000 - Jan 2006	-41.05 Sep 2000 - Jan 2006	-41.05 Sep 2000 - Jan 2006
-39.75 Aug 1929 - Jan 1936	-39.75 Aug 1929 - Jan 1936	-39.75 Aug 1929 - Jan 1936	-39.75 Aug 1929 - Jan 1936	-39.75 Aug 1929 - Jan 1936	-39.75 Aug 1929 - Jan 1936
-32.15 Oct 1987 - Jul 1989	-32.15 Oct 1987 - Jul 1989	-32.15 Oct 1987 - Jul 1989	-32.15 Oct 1987 - Jul 1989	-32.15 Oct 1987 - Jul 1989	-32.15 Oct 1987 - Jul 1989
5 Worst Drawdowns - Average
-43.72	-43.72	-43.72	-43.72	-43.72	-43.72
10 Worst Drawdowns - Average
-34.46	-34.46	-34.46	-34.46	-34.46	-34.46

For a deeper insight, please refer to the UK Stocks Portfolio: ETF allocation and returns page.