Tyler Golden Butterfly To GBP Bond Hedged Portfolio: Rebalancing Strategy
Managing the Tyler Golden Butterfly To GBP Bond Hedged Portfolio with a yearly rebalancing, you would have obtained a 10.64% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 7.58%.
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 Jun 30, 2026
Implementing different rebalancing strategies, the Tyler Golden Butterfly To GBP Bond Hedged Portfolio guaranteed the following returns.
Portfolio returns are calculated in GBP, 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.
| Return (%) and number of rebalances as of Jun 30, 2026 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~100Y) |
|||||
| No Rebalancing | 34.89 | (0) | 11.05 | (0) | 12.85 | (0) | 10.64 | (0) | 12.57 | (0) |
| Yearly Rebalancing | -1.76 | (1) | 3.78 | (5) | 5.83 | (10) | 7.63 | (30) | 9.51 | (100) |
| Half Yearly Rebalancing | -2.18 | (2) | 3.52 | (10) | 6.02 | (20) | 7.58 | (60) | 9.45 | (199) |
| Quarterly Rebalancing | -5.90 | (4) | 2.75 | (20) | 5.81 | (40) | 7.65 | (120) | 9.41 | (398) |
| 5% Tolerance per asset | -6.04 | (2) | 2.97 | (4) | 5.91 | (8) | 7.72 | (19) | 9.46 | (61) |
| 10% Tolerance per asset | -16.11 | (1) | 0.94 | (2) | 4.66 | (3) | 7.13 | (5) | 9.77 | (24) |
In order to have complete information about the portfolio, please refer to the Tyler Golden Butterfly To GBP Bond Hedged Portfolio: ETF allocation and returns page.
Performances as of Jun 30, 2026
Historical returns and stats of Tyler Golden Butterfly To GBP Bond Hedged Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 12.57 | (0) | 16.48 | 0.76 | -42.42 | 0.30 |
| Yearly Rebalancing | 9.51 | (100) | 9.25 | 1.03 | -40.63 | 0.23 |
| Half Yearly Rebalancing | 9.45 | (199) | 9.37 | 1.01 | -40.26 | 0.23 |
| Quarterly Rebalancing | 9.41 | (398) | 9.39 | 1.00 | -41.01 | 0.23 |
| 5% Tolerance per asset | 9.46 | (61) | 9.39 | 1.01 | -40.67 | 0.23 |
| 10% Tolerance per asset | 9.77 | (24) | 9.76 | 1.00 | -33.73 | 0.29 |
Drawdowns as of Jun 30, 2026
Historical Drawdowns of Tyler Golden Butterfly To GBP Bond Hedged Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-42.42
Sep 1989 - Jan 1992
|
-40.63
Sep 1929 - Sep 1935
|
-40.26
Sep 1929 - Jun 1935
|
-41.01
Sep 1929 - Jun 1933
|
-40.67
Sep 1929 - Jul 1935
|
-33.73
Sep 1929 - May 1933
|
|
-41.90
Sep 1929 - Jul 1936
|
-22.73
Mar 1937 - Jul 1939
|
-23.43
Mar 1937 - Jul 1939
|
-23.90
Mar 1937 - Jul 1939
|
-23.90
Mar 1937 - Jul 1939
|
-30.33
Jan 2026 - In progress
|
|
-38.81
Dec 1972 - Jun 1975
|
-20.28
Jan 2026 - In progress
|
-20.28
Jan 2026 - In progress
|
-20.28
Jan 2026 - In progress
|
-20.69
Jan 2026 - In progress
|
-22.64
Mar 1937 - Sep 1939
|
|
-36.85
Sep 2018 - Nov 2020
|
-17.55
May 1969 - Mar 1971
|
-17.68
May 1969 - Feb 1971
|
-17.87
May 1969 - Feb 1971
|
-17.08
May 1969 - Jan 1971
|
-17.57
May 1969 - Mar 1971
|
|
-36.72
Sep 1987 - Mar 1989
|
-16.36
Aug 1987 - Mar 1989
|
-16.63
Mar 1974 - Mar 1975
|
-16.79
Dec 1989 - Mar 1991
|
-16.14
Dec 1989 - Mar 1991
|
-15.83
Mar 1974 - Apr 1975
|
| 5 Worst Drawdowns - Average | |||||
| -39.34 | -23.51 | -23.66 | -23.97 | -23.70 | -24.02 |
| 10 Worst Drawdowns - Average | |||||
| -35.46 | -18.07 | -18.23 | -18.25 | -18.18 | -18.44 |
For a deeper insight, please refer to the Tyler Golden Butterfly To GBP Bond Hedged Portfolio: ETF allocation and returns page.