Dedalo Invest Dedalo Three Euro Portfolio: Rebalancing Strategy

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

Managing the Dedalo Invest Dedalo Three Euro Portfolio with a yearly rebalancing, you would have obtained a 7.89% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 7.88%.

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 Dedalo Invest Dedalo Three Euro Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on February 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)
  • 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.
DEDALO INVEST DEDALO THREE EURO PORTFOLIO RETURNS
Period: February 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 22.42 (1) 12.22 (5) 9.64 (10) 7.89 (30) 8.59 (52)
Half Yearly Rebalancing 22.45 (2) 12.19 (10) 9.64 (20) 7.89 (60) 8.59 (104)
Quarterly Rebalancing 22.49 (4) 12.25 (20) 9.68 (40) 7.88 (120) 8.57 (209)
5% Tolerance per asset 22.38 (0) 12.08 (0) 9.63 (1) 7.84 (4) 8.59 (15)
10% Tolerance per asset 22.39 (0) 12.08 (0) 9.65 (1) 7.89 (2) 8.63 (5)

In order to have complete information about the portfolio, please refer to the Dedalo Invest Dedalo Three Euro Portfolio: ETF allocation and returns page.

Performances as of May 31, 2024

Historical returns and stats of Dedalo Invest Dedalo Three Euro Portfolio, after implementing different rebalancing strategies.

DEDALO INVEST DEDALO THREE EURO PORTFOLIO PERFORMANCES
Period: February 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 8.59 (52) 14.22 0.60 -50.90 0.17
Half Yearly Rebalancing 8.59 (104) 14.21 0.60 -50.88 0.17
Quarterly Rebalancing 8.57 (209) 14.22 0.60 -50.88 0.17
5% Tolerance per asset 8.59 (15) 14.25 0.60 -51.06 0.17
10% Tolerance per asset 8.63 (5) 14.17 0.61 -51.06 0.17
(*) Since Feb 1972 (~52 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of May 31, 2024

Historical Drawdowns of Dedalo Invest Dedalo Three Euro Portfolio, after implementing different rebalancing strategies.

DEDALO INVEST DEDALO THREE EURO PORTFOLIO DRAWDOWNS
Period: February 1972 - May 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-50.90
Jun 2007 - Apr 2013
-50.88
Jun 2007 - Mar 2013
-50.88
Jun 2007 - Mar 2013
-51.06
Jun 2007 - Apr 2013
-51.06
Jun 2007 - Apr 2013
-49.83
Sep 2000 - May 2007
-49.92
Sep 2000 - May 2007
-49.89
Sep 2000 - May 2007
-49.98
Sep 2000 - May 2007
-49.27
Sep 2000 - Apr 2007
-40.84
Jan 1973 - Jun 1976
-40.91
Jan 1973 - Jun 1976
-40.81
Jan 1973 - Mar 1976
-41.10
Jan 1973 - Jun 1976
-41.10
Jan 1973 - Dec 1976
-29.54
Sep 1987 - Apr 1989
-29.28
Sep 1987 - Apr 1989
-29.19
Sep 1987 - Apr 1989
-29.54
Sep 1987 - Apr 1989
-29.13
Sep 1987 - Apr 1989
-21.02
Jan 2020 - Nov 2020
-21.02
Jan 2020 - Nov 2020
-21.02
Jan 2020 - Nov 2020
-21.07
Jan 2020 - Nov 2020
-20.97
Jan 2020 - Nov 2020
5 Worst Drawdowns - Average
-38.43 -38.40 -38.36 -38.55 -38.31
10 Worst Drawdowns - Average
-27.82 -27.83 -27.77 -27.85 -27.62

For a deeper insight, please refer to the Dedalo Invest Dedalo Three Euro Portfolio: ETF allocation and returns page.