All Country World 80/20 Portfolio: Rebalancing Strategy

Data Source: from January 1985 to April 2024
Consolidated Returns as of 30 April 2024

Managing the All Country World 80/20 Portfolio with a yearly rebalancing, you would have obtained a 6.55% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 6.50%.

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 Apr 30, 2024

Implementing different rebalancing strategies, the All Country World 80/20 Portfolio guaranteed the following returns.

According to the available data source, we 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
ALL COUNTRY WORLD 80/20 PORTFOLIO RETURNS
Period: January 1985 - April 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Apr 30, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~39Y)
Yearly Rebalancing 13.62 (1) 7.55 (5) 7.03 (10) 6.55 (30) 8.34 (40)
Half Yearly Rebalancing 13.57 (2) 7.59 (10) 7.05 (20) 6.48 (60) 8.29 (79)
Quarterly Rebalancing 13.56 (4) 7.69 (20) 7.10 (40) 6.50 (120) 8.32 (158)
5% Tolerance per asset 13.63 (0) 7.66 (1) 7.10 (2) 6.55 (8) 8.38 (11)
10% Tolerance per asset 14.16 (0) 7.82 (1) 7.28 (1) 6.56 (2) 8.33 (2)

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

Performances as of Apr 30, 2024

Historical returns and stats of All Country World 80/20 Portfolio, after implementing different rebalancing strategies.

ALL COUNTRY WORLD 80/20 PORTFOLIO PERFORMANCES
Period: January 1985 - April 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
Yearly Rebalancing 8.34 (40) 13.09 0.64 -47.32 0.18
Half Yearly Rebalancing 8.29 (79) 13.09 0.63 -47.86 0.17
Quarterly Rebalancing 8.32 (158) 13.12 0.63 -48.34 0.17
5% Tolerance per asset 8.38 (11) 13.19 0.64 -48.21 0.17
10% Tolerance per asset 8.33 (2) 13.82 0.60 -48.17 0.17
(*) Since Jan 1985 (~39 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Apr 30, 2024

Historical Drawdowns of All Country World 80/20 Portfolio, after implementing different rebalancing strategies.

ALL COUNTRY WORLD 80/20 PORTFOLIO DRAWDOWNS
Period: January 1985 - April 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-47.32
Nov 2007 - Jan 2013
-47.86
Nov 2007 - Jan 2013
-48.34
Nov 2007 - Jan 2013
-48.21
Nov 2007 - Jan 2013
-48.17
Nov 2007 - Jan 2013
-36.69
Apr 2000 - Sep 2005
-37.43
Apr 2000 - Nov 2005
-37.38
Apr 2000 - Sep 2005
-37.07
Apr 2000 - Sep 2005
-39.75
Apr 2000 - Jan 2006
-23.52
Jan 2022 - Feb 2024
-23.56
Jan 2022 - Feb 2024
-23.56
Jan 2022 - Feb 2024
-23.52
Jan 2022 - Feb 2024
-23.87
Jan 2022 - Feb 2024
-22.19
Sep 1987 - Jan 1989
-21.10
Sep 1987 - Jan 1989
-20.63
Sep 1987 - Jan 1989
-20.78
Jan 1990 - Dec 1991
-23.24
Sep 1987 - Jan 1989
-19.99
Jan 1990 - Dec 1991
-20.28
Jan 1990 - Dec 1991
-20.21
Jan 1990 - Dec 1991
-20.67
Sep 1987 - Dec 1988
-22.18
Jan 1990 - Mar 1993
5 Worst Drawdowns - Average
-29.94 -30.05 -30.02 -30.05 -31.44
10 Worst Drawdowns - Average
-20.89 -20.92 -20.89 -21.05 -22.23

For a deeper insight, please refer to the All Country World 80/20 Portfolio: ETF allocation and returns page.