Gyroscopic Investing Desert Portfolio To EUR Hedged: Rebalancing Strategy

Data Source: from January 1950 to April 2024
Consolidated Returns as of 30 April 2024

Managing the Gyroscopic Investing Desert Portfolio To EUR Hedged with a yearly rebalancing, you would have obtained a 5.95% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 5.90%.

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 Gyroscopic Investing Desert Portfolio To EUR Hedged guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1950.

Portfolio returns are calculated in EUR, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
  • 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.
GYROSCOPIC INVESTING DESERT PORTFOLIO TO EUR HEDGED RETURNS
Period: January 1950 - 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
(~74Y)
Yearly Rebalancing 6.00 (1) 3.30 (5) 3.16 (10) 5.95 (30) 7.22 (75)
Half Yearly Rebalancing 5.85 (2) 3.28 (10) 3.16 (20) 5.82 (60) 7.14 (149)
Quarterly Rebalancing 5.82 (4) 3.38 (20) 3.22 (40) 5.90 (120) 7.11 (298)
5% Tolerance per asset 5.69 (0) 3.18 (2) 3.13 (4) 5.97 (21) 7.23 (48)
10% Tolerance per asset 7.40 (1) 3.59 (2) 3.47 (3) 6.34 (9) 7.45 (18)

In order to have complete information about the portfolio, please refer to the Gyroscopic Investing Desert Portfolio To EUR Hedged: ETF allocation and returns page.

Performances as of Apr 30, 2024

Historical returns and stats of Gyroscopic Investing Desert Portfolio To EUR Hedged, after implementing different rebalancing strategies.

GYROSCOPIC INVESTING DESERT PORTFOLIO TO EUR HEDGED PERFORMANCES
Period: January 1950 - 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 7.22 (75) 6.12 1.18 -15.41 0.47
Half Yearly Rebalancing 7.14 (149) 6.08 1.17 -15.35 0.46
Quarterly Rebalancing 7.11 (298) 6.08 1.17 -15.34 0.46
5% Tolerance per asset 7.23 (48) 6.12 1.18 -15.36 0.47
10% Tolerance per asset 7.45 (18) 6.40 1.16 -16.36 0.46
(*) Since Jan 1950 (~74 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Apr 30, 2024

Historical Drawdowns of Gyroscopic Investing Desert Portfolio To EUR Hedged, after implementing different rebalancing strategies.

GYROSCOPIC INVESTING DESERT PORTFOLIO TO EUR HEDGED DRAWDOWNS
Period: January 1950 - April 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-15.41
Jan 2022 - In progress
-15.35
Jan 2022 - In progress
-15.34
Jan 2022 - In progress
-15.36
Jan 2022 - In progress
-16.36
Jan 2022 - In progress
-13.48
Dec 1980 - Sep 1982
-13.29
Dec 1968 - Nov 1970
-13.35
Dec 1968 - Nov 1970
-13.27
Dec 1968 - Nov 1970
-14.98
Dec 1968 - Dec 1970
-13.21
Dec 1968 - Nov 1970
-13.26
Dec 1980 - Sep 1982
-13.21
Dec 1980 - Sep 1982
-12.84
Dec 1980 - Sep 1982
-14.66
Dec 1980 - Oct 1982
-11.85
Mar 1974 - Feb 1975
-12.68
Mar 1974 - Feb 1975
-12.12
Mar 1974 - Feb 1975
-12.34
Mar 1974 - Feb 1975
-11.52
Feb 1980 - Jun 1980
-11.01
Feb 1980 - May 1980
-11.01
Feb 1980 - May 1980
-11.01
Feb 1980 - May 1980
-10.54
Feb 1980 - May 1980
-11.32
Mar 1974 - Feb 1975
5 Worst Drawdowns - Average
-12.99 -13.12 -13.01 -12.87 -13.77
10 Worst Drawdowns - Average
-10.34 -10.32 -10.32 -10.23 -10.78

For a deeper insight, please refer to the Gyroscopic Investing Desert Portfolio To EUR Hedged: ETF allocation and returns page.