Data Source: from January 1985 to December 2022
Consolidated Returns as of 31 December 2022

Managing the Developed World ex-US 20/80 Portfolio with a yearly rebalancing, you would have obtained a 5.36% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 5.37%.

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 Dec 31, 2022

Implementing different rebalancing strategies, the Developed World ex-US 20/80 Portfolio guaranteed the following returns.

According to the available data source, let's assume we built the portfolio on January 1985.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
DEVELOPED WORLD EX-US 20/80 PORTFOLIO RETURNS
Period: January 1985 - December 2022
Swipe left to see all data
 
Return (%) and number of rebalances as of Dec 31, 2022
Rebalancing Strategy 1Y 5Y(*) 10Y(*) 30Y(*) (**)Since
Inception
Yearly Rebalancing -13.28 (1) 0.27 (5) 2.28 (10) 5.36 (30) 7.14 (38)
Half Yearly Rebalancing -13.17 (2) 0.35 (10) 2.31 (20) 5.36 (60) 7.12 (76)
Quarterly Rebalancing -13.01 (4) 0.47 (20) 2.35 (40) 5.37 (120) 7.12 (152)
5% Tolerance per asset -13.34 (0) 0.61 (3) 2.42 (3) 5.36 (10) 7.17 (14)
10% Tolerance per asset -13.23 (0) 0.10 (0) 1.99 (0) 5.05 (0) 6.88 (1)
(*) Returns over 1 year are annualized
(**) Since Jan 1985 (~38 yrs) | Annualized Returns

In order to have complete information about the portfolio, please refer to the Developed World ex-US 20/80 Portfolio: ETF allocation and returns page.

Performances as of Dec 31, 2022

Historical returns and stats of Developed World ex-US 20/80 Portfolio, after implementing different rebalancing strategies.

DEVELOPED WORLD EX-US 20/80 PORTFOLIO PERFORMANCES
Period: January 1985 - December 2022
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy (*)Return (%) StDev(%) Ret/StDev MaxDD(%) Ret/MaxDD
Yearly Rebalancing 7.14 (38) 5.80 1.23 -16.80 0.42
Half Yearly Rebalancing 7.12 (76) 5.82 1.22 -16.94 0.42
Quarterly Rebalancing 7.12 (152) 5.86 1.21 -16.95 0.42
5% Tolerance per asset 7.17 (14) 5.88 1.22 -17.12 0.42
10% Tolerance per asset 6.88 (1) 5.73 1.20 -16.61 0.41
(*) Since Jan 1985 (~38 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Dec 31, 2022

Historical Drawdowns of Developed World ex-US 20/80 Portfolio, after implementing different rebalancing strategies.

DEVELOPED WORLD EX-US 20/80 PORTFOLIO DRAWDOWNS
Period: January 1985 - December 2022
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-16.80
Aug 2021 - In progress
-16.94
Aug 2021 - In progress
-16.95
Aug 2021 - In progress
-17.12
Aug 2021 - In progress
-16.61
Aug 2021 - In progress
-15.55
Mar 2008 - Aug 2009
-16.09
Mar 2008 - Aug 2009
-16.60
Mar 2008 - Sep 2009
-16.35
Mar 2008 - Aug 2009
-15.82
Mar 2008 - Sep 2009
-7.46
Dec 1996 - Sep 1998
-7.45
Dec 1996 - Apr 1998
-7.47
Dec 1996 - Apr 1998
-7.58
Dec 1996 - Sep 1998
-8.37
Jan 1990 - Feb 1991
-7.02
Jan 1990 - Jul 1990
-7.02
Jan 1990 - Jul 1990
-7.06
Jan 1990 - Jul 1990
-7.04
Jan 1990 - Jul 1990
-7.58
Dec 1996 - Sep 1998
-6.51
Feb 1994 - Jul 1995
-6.79
Aug 1990 - Jan 1991
-6.79
Aug 1990 - Jan 1991
-6.32
Aug 1990 - Dec 1990
-6.69
Feb 1994 - Jul 1995
5 Worst Drawdowns - Average
-10.67 -10.86 -10.97 -10.88 -11.02
10 Worst Drawdowns - Average
-7.76 -7.86 -7.94 -7.81 -7.48

For a deeper insight, please refer to the Developed World ex-US 20/80 Portfolio: ETF allocation and returns page.

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