Consolidated Returns as of 28 February 2025
Managing the Euro Stocks/Bonds 40/60 Portfolio with a yearly rebalancing, you would have obtained a 5.45% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 5.73%.
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.
At fixed time intervals:
- Yearly: Jan 1st
- Half Yearly: Jan 1st, Jul 1st
- Quarterly: Jan 1st, Apr 1st, Jul 1st, Oct 1st
Portfolio Returns as of Feb 28, 2025
Implementing different rebalancing strategies, the Euro Stocks/Bonds 40/60 Portfolio guaranteed the following returns.
Portfolio returns are calculated in EUR, assuming:
- No fees or capital gain taxes
- the reinvestment of dividends, if existing
| Return (%) and number of rebalances as of Feb 28, 2025 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~38Y) |
|||||
| No Rebalancing | 10.21 | (0) | 4.79 | (0) | 3.34 | (0) | 5.45 | (0) | 5.38 | (0) |
| Yearly Rebalancing | 8.84 | (1) | 4.09 | (5) | 3.09 | (10) | 5.81 | (30) | 5.73 | (38) |
| Half Yearly Rebalancing | 8.94 | (2) | 4.17 | (10) | 3.18 | (20) | 5.73 | (60) | 5.66 | (76) |
| Quarterly Rebalancing | 8.96 | (4) | 4.32 | (20) | 3.25 | (40) | 5.81 | (120) | 5.72 | (151) |
| 5% Tolerance per asset | 8.83 | (1) | 4.29 | (3) | 3.09 | (3) | 5.74 | (16) | 5.65 | (19) |
| 10% Tolerance per asset | 9.43 | (0) | 4.61 | (1) | 3.25 | (1) | 5.96 | (7) | 5.79 | (7) |
In order to have complete information about the portfolio, please refer to the Euro Stocks/Bonds 40/60 Portfolio: ETF allocation and returns page.
Performances as of Feb 28, 2025
Historical returns and stats of Euro Stocks/Bonds 40/60 Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 5.38 | (0) | 7.19 | 0.75 | -19.75 | 0.27 |
| Yearly Rebalancing | 5.73 | (38) | 7.22 | 0.79 | -18.24 | 0.31 |
| Half Yearly Rebalancing | 5.66 | (76) | 7.22 | 0.78 | -19.63 | 0.29 |
| Quarterly Rebalancing | 5.72 | (151) | 7.29 | 0.78 | -20.38 | 0.28 |
| 5% Tolerance per asset | 5.65 | (19) | 7.41 | 0.76 | -20.50 | 0.28 |
| 10% Tolerance per asset | 5.79 | (7) | 7.37 | 0.79 | -19.81 | 0.29 |
Drawdowns as of Feb 28, 2025
Historical Drawdowns of Euro Stocks/Bonds 40/60 Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-19.75
Sep 2000 - Feb 2005
|
-18.24
Nov 2007 - Mar 2010
|
-19.63
Nov 2007 - Sep 2010
|
-20.38
Nov 2007 - Oct 2010
|
-20.50
Nov 2007 - Oct 2010
|
-19.81
Nov 2007 - Mar 2010
|
|
-19.59
Nov 2007 - Aug 2012
|
-18.22
Jan 2022 - Mar 2024
|
-18.21
Jan 2022 - Mar 2024
|
-18.23
Jan 2022 - Mar 2024
|
-18.35
Jan 2022 - Feb 2024
|
-18.58
Jan 2022 - Feb 2024
|
|
-18.42
Jan 2022 - Feb 2024
|
-14.82
Sep 2000 - Feb 2004
|
-16.05
Sep 2000 - Oct 2004
|
-15.13
Sep 2000 - Feb 2004
|
-15.28
Sep 2000 - Feb 2004
|
-14.17
Sep 2000 - Jan 2004
|
|
-11.17
Feb 1994 - Jan 1996
|
-11.63
Feb 1994 - Jan 1996
|
-11.65
Feb 1994 - Jan 1996
|
-11.65
Feb 1994 - Jan 1996
|
-12.19
Jan 2020 - Dec 2020
|
-11.93
Jan 2020 - Dec 2020
|
|
-11.07
Jan 2020 - Nov 2020
|
-10.99
Jan 2020 - Nov 2020
|
-10.99
Jan 2020 - Nov 2020
|
-10.99
Jan 2020 - Nov 2020
|
-11.99
Feb 1994 - Jan 1996
|
-11.17
Feb 1994 - Jan 1996
|
| 5 Worst Drawdowns - Average | |||||
| -16.00 | -14.78 | -15.30 | -15.27 | -15.66 | -15.13 |
| 10 Worst Drawdowns - Average | |||||
| -11.92 | -11.60 | -11.68 | -11.65 | -11.99 | -11.76 |
For a deeper insight, please refer to the Euro Stocks/Bonds 40/60 Portfolio: ETF allocation and returns page.
