All Country World 80/20 To EUR Portfolio: Rebalancing Strategy

Data Source: from August 1972 to May 2024
Consolidated Returns as of 31 May 2024

Managing the All Country World 80/20 To EUR Portfolio with a yearly rebalancing, you would have obtained a 6.43% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 6.38%.

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 May 31, 2024

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

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

Portfolio returns are calculated in EUR, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
  • the adjustment for actual currency exchange rates (simulation derived from original US returns)
ALL COUNTRY WORLD 80/20 TO EUR PORTFOLIO RETURNS
Period: August 1972 - May 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of May 31, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~52Y)
Yearly Rebalancing 16.31 (1) 9.44 (5) 8.97 (10) 6.43 (30) 7.86 (52)
Half Yearly Rebalancing 16.24 (2) 9.44 (10) 8.99 (20) 6.34 (60) 7.81 (103)
Quarterly Rebalancing 16.17 (4) 9.48 (20) 9.03 (40) 6.38 (120) 7.85 (207)
5% Tolerance per asset 16.64 (1) 9.62 (2) 9.07 (2) 6.41 (8) 7.86 (14)
10% Tolerance per asset 17.20 (0) 9.93 (1) 9.36 (1) 6.43 (2) 7.95 (4)

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

Performances as of May 31, 2024

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

ALL COUNTRY WORLD 80/20 TO EUR PORTFOLIO PERFORMANCES
Period: August 1972 - May 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
Yearly Rebalancing 7.86 (52) 13.64 0.58 -47.86 0.16
Half Yearly Rebalancing 7.81 (103) 13.62 0.57 -49.12 0.16
Quarterly Rebalancing 7.85 (207) 13.64 0.58 -49.28 0.16
5% Tolerance per asset 7.86 (14) 13.80 0.57 -48.58 0.16
10% Tolerance per asset 7.95 (4) 13.85 0.57 -49.89 0.16
(*) Since Aug 1972 (~52 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of May 31, 2024

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

ALL COUNTRY WORLD 80/20 TO EUR PORTFOLIO DRAWDOWNS
Period: August 1972 - May 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-47.86
Sep 2000 - Oct 2013
-49.12
Sep 2000 - Nov 2013
-49.28
Sep 2000 - Nov 2013
-48.58
Sep 2000 - Nov 2013
-49.89
Sep 2000 - Apr 2014
-41.17
Jan 1973 - Jun 1979
-41.43
Jan 1973 - Jun 1979
-41.39
Jan 1973 - Apr 1979
-41.53
Jan 1973 - Apr 1979
-41.53
Jan 1973 - Apr 1979
-30.91
Sep 1989 - Jun 1993
-31.30
Sep 1989 - Jun 1993
-31.28
Sep 1989 - Jun 1993
-31.65
Sep 1989 - Jun 1993
-31.19
Sep 1989 - Jun 1993
-28.51
Sep 1987 - Jan 1989
-27.66
Sep 1987 - Jan 1989
-27.16
Sep 1987 - Jan 1989
-28.17
Sep 1987 - Jan 1989
-27.66
Sep 1987 - Jan 1989
-17.41
Feb 1994 - Jan 1996
-17.42
Feb 1994 - Jan 1996
-17.43
Feb 1994 - Jan 1996
-17.50
Apr 1998 - Jan 1999
-17.58
Feb 1994 - Jan 1996
5 Worst Drawdowns - Average
-33.17 -33.38 -33.31 -33.48 -33.57
10 Worst Drawdowns - Average
-23.49 -23.54 -23.50 -23.79 -23.95

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