Developed World Stocks To GBP Hedged Portfolio: Rebalancing Strategy

Data Source: from January 1972 to July 2025
Consolidated Returns as of 31 July 2025

Managing the Developed World Stocks To GBP Hedged Portfolio with a yearly rebalancing, you would have obtained a 8.29% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 8.29%.

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 Developed World Stocks To GBP Hedged Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1972.

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.
DEVELOPED WORLD STOCKS TO GBP HEDGED PORTFOLIO RETURNS
Period: January 1972 - 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
(~54Y)
No Rebalancing 15.32 (0) 13.78 (0) 9.70 (0) 8.29 (0) 10.68 (0)
Yearly Rebalancing 15.32 (1) 13.78 (5) 9.70 (10) 8.29 (30) 10.68 (54)
Half Yearly Rebalancing 15.32 (2) 13.78 (10) 9.70 (20) 8.29 (60) 10.68 (108)
Quarterly Rebalancing 15.32 (4) 13.78 (20) 9.70 (40) 8.29 (120) 10.68 (215)
5% Tolerance per asset 15.32 (0) 13.78 (0) 9.70 (0) 8.29 (0) 10.68 (0)
10% Tolerance per asset 15.32 (0) 13.78 (0) 9.70 (0) 8.29 (0) 10.68 (0)

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

Performances as of Jul 31, 2025

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

DEVELOPED WORLD STOCKS TO GBP HEDGED PORTFOLIO PERFORMANCES
Period: January 1972 - 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 10.68 (0) 14.30 0.75 -52.78 0.20
Yearly Rebalancing 10.68 (54) 14.30 0.75 -52.78 0.20
Half Yearly Rebalancing 10.68 (108) 14.30 0.75 -52.78 0.20
Quarterly Rebalancing 10.68 (215) 14.30 0.75 -52.78 0.20
5% Tolerance per asset 10.68 (0) 14.30 0.75 -52.78 0.20
10% Tolerance per asset 10.68 (0) 14.30 0.75 -52.78 0.20
(*) Since Jan 1972 (~54 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Jul 31, 2025

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

DEVELOPED WORLD STOCKS TO GBP HEDGED PORTFOLIO DRAWDOWNS
Period: January 1972 - July 2025
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-52.78
Nov 2007 - Apr 2013
-52.78
Nov 2007 - Apr 2013
-52.78
Nov 2007 - Apr 2013
-52.78
Nov 2007 - Apr 2013
-52.78
Nov 2007 - Apr 2013
-52.78
Nov 2007 - Apr 2013
-45.74
Apr 2000 - Sep 2005
-45.74
Apr 2000 - Sep 2005
-45.74
Apr 2000 - Sep 2005
-45.74
Apr 2000 - Sep 2005
-45.74
Apr 2000 - Sep 2005
-45.74
Apr 2000 - Sep 2005
-29.81
Nov 1973 - May 1975
-29.81
Nov 1973 - May 1975
-29.81
Nov 1973 - May 1975
-29.81
Nov 1973 - May 1975
-29.81
Nov 1973 - May 1975
-29.81
Nov 1973 - May 1975
-22.55
Dec 1980 - Jan 1983
-22.55
Dec 1980 - Jan 1983
-22.55
Dec 1980 - Jan 1983
-22.55
Dec 1980 - Jan 1983
-22.55
Dec 1980 - Jan 1983
-22.55
Dec 1980 - Jan 1983
-21.51
Jan 2022 - Dec 2023
-21.51
Jan 2022 - Dec 2023
-21.51
Jan 2022 - Dec 2023
-21.51
Jan 2022 - Dec 2023
-21.51
Jan 2022 - Dec 2023
-21.51
Jan 2022 - Dec 2023
5 Worst Drawdowns - Average
-34.48 -34.48 -34.48 -34.48 -34.48 -34.48
10 Worst Drawdowns - Average
-25.96 -25.96 -25.96 -25.96 -25.96 -25.96

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