US Stocks To GBP Hedged Portfolio: Rebalancing Strategy

Data Source: from January 1950 to July 2025
Consolidated Returns as of 31 July 2025

Managing the US Stocks To GBP Hedged Portfolio with a yearly rebalancing, you would have obtained a 10.41% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 10.41%.

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 US Stocks To GBP Hedged Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1950.

Portfolio returns are calculated in GBP, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
  • the currency hedging (simulation taking into account the interest rate differentials of the countries). It is also assumed that hedged instruments have an additional expense ratio of 0.25% (yearly), compared to the US original instrument.
US STOCKS TO GBP HEDGED PORTFOLIO RETURNS
Period: January 1950 - 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
(~76Y)
No Rebalancing 17.37 (0) 14.34 (0) 11.80 (0) 10.41 (0) 12.73 (0)
Yearly Rebalancing 17.37 (1) 14.34 (5) 11.80 (10) 10.41 (30) 12.73 (76)
Half Yearly Rebalancing 17.37 (2) 14.34 (10) 11.80 (20) 10.41 (60) 12.73 (152)
Quarterly Rebalancing 17.37 (4) 14.34 (20) 11.80 (40) 10.41 (120) 12.73 (303)
5% Tolerance per asset 17.37 (0) 14.34 (0) 11.80 (0) 10.41 (0) 12.73 (0)
10% Tolerance per asset 17.37 (0) 14.34 (0) 11.80 (0) 10.41 (0) 12.73 (0)

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

Performances as of Jul 31, 2025

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

US STOCKS TO GBP HEDGED PORTFOLIO PERFORMANCES
Period: January 1950 - 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 12.73 (0) 14.73 0.86 -49.51 0.26
Yearly Rebalancing 12.73 (76) 14.73 0.86 -49.51 0.26
Half Yearly Rebalancing 12.73 (152) 14.73 0.86 -49.51 0.26
Quarterly Rebalancing 12.73 (303) 14.73 0.86 -49.51 0.26
5% Tolerance per asset 12.73 (0) 14.73 0.86 -49.51 0.26
10% Tolerance per asset 12.73 (0) 14.73 0.86 -49.51 0.26
(*) Since Jan 1950 (~76 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Jul 31, 2025

Historical Drawdowns of US Stocks To GBP Hedged Portfolio, after implementing different rebalancing strategies.

US STOCKS TO GBP HEDGED PORTFOLIO DRAWDOWNS
Period: January 1950 - July 2025
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-49.51
Nov 2007 - Apr 2011
-49.51
Nov 2007 - Apr 2011
-49.51
Nov 2007 - Apr 2011
-49.51
Nov 2007 - Apr 2011
-49.51
Nov 2007 - Apr 2011
-49.51
Nov 2007 - Apr 2011
-45.01
Jan 1973 - Mar 1976
-45.01
Jan 1973 - Mar 1976
-45.01
Jan 1973 - Mar 1976
-45.01
Jan 1973 - Mar 1976
-45.01
Jan 1973 - Mar 1976
-45.01
Jan 1973 - Mar 1976
-42.68
Sep 2000 - Jul 2005
-42.68
Sep 2000 - Jul 2005
-42.68
Sep 2000 - Jul 2005
-42.68
Sep 2000 - Jul 2005
-42.68
Sep 2000 - Jul 2005
-42.68
Sep 2000 - Jul 2005
-30.73
Dec 1968 - Mar 1971
-30.73
Dec 1968 - Mar 1971
-30.73
Dec 1968 - Mar 1971
-30.73
Dec 1968 - Mar 1971
-30.73
Dec 1968 - Mar 1971
-30.73
Dec 1968 - Mar 1971
-29.02
Sep 1987 - Apr 1989
-29.02
Sep 1987 - Apr 1989
-29.02
Sep 1987 - Apr 1989
-29.02
Sep 1987 - Apr 1989
-29.02
Sep 1987 - Apr 1989
-29.02
Sep 1987 - Apr 1989
5 Worst Drawdowns - Average
-39.39 -39.39 -39.39 -39.39 -39.39 -39.39
10 Worst Drawdowns - Average
-30.24 -30.24 -30.24 -30.24 -30.24 -30.24

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