Pinwheel To EUR Bond Hedged Portfolio: Rebalancing Strategy

Data Source: from January 1976 to April 2024
Consolidated Returns as of 30 April 2024

Managing the Pinwheel To EUR Bond Hedged Portfolio with a yearly rebalancing, you would have obtained a 7.30% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 7.22%.

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 Pinwheel To EUR Bond Hedged Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1976.

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.
PINWHEEL TO EUR BOND HEDGED PORTFOLIO RETURNS
Period: January 1976 - 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
(~48Y)
Yearly Rebalancing 12.98 (1) 6.85 (5) 7.39 (10) 7.30 (30) 9.26 (49)
Half Yearly Rebalancing 12.93 (2) 6.84 (10) 7.42 (20) 7.11 (60) 9.03 (97)
Quarterly Rebalancing 12.89 (4) 6.98 (20) 7.53 (40) 7.22 (120) 9.04 (194)
5% Tolerance per asset 13.28 (0) 7.33 (2) 7.74 (4) 7.40 (12) 9.42 (24)
10% Tolerance per asset 14.81 (0) 7.06 (0) 7.86 (1) 7.58 (5) 9.58 (8)

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

Performances as of Apr 30, 2024

Historical returns and stats of Pinwheel To EUR Bond Hedged Portfolio, after implementing different rebalancing strategies.

PINWHEEL TO EUR BOND HEDGED PORTFOLIO PERFORMANCES
Period: January 1976 - 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 9.26 (49) 10.29 0.90 -30.05 0.31
Half Yearly Rebalancing 9.03 (97) 10.27 0.88 -31.23 0.29
Quarterly Rebalancing 9.04 (194) 10.27 0.88 -31.18 0.29
5% Tolerance per asset 9.42 (24) 10.37 0.91 -30.44 0.31
10% Tolerance per asset 9.58 (8) 10.62 0.90 -26.64 0.36
(*) Since Jan 1976 (~48 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Apr 30, 2024

Historical Drawdowns of Pinwheel To EUR Bond Hedged Portfolio, after implementing different rebalancing strategies.

PINWHEEL TO EUR BOND HEDGED PORTFOLIO DRAWDOWNS
Period: January 1976 - April 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-30.05
Nov 2007 - Mar 2010
-31.23
Nov 2007 - Apr 2010
-31.18
Nov 2007 - Mar 2010
-30.44
Nov 2007 - Mar 2010
-26.64
Nov 2007 - Apr 2010
-21.75
Apr 2002 - Feb 2005
-22.37
Apr 2002 - Feb 2005
-22.25
Apr 2002 - Feb 2005
-23.05
Apr 2002 - Feb 2005
-22.58
Aug 1987 - Mar 1989
-21.32
Aug 1987 - Jan 1989
-21.84
Aug 1987 - Jan 1989
-21.14
Aug 1987 - Jan 1989
-20.55
Aug 1987 - Jan 1989
-22.48
Apr 2002 - Feb 2005
-17.47
Sep 1989 - Mar 1991
-17.75
Sep 1989 - Mar 1991
-17.60
Sep 1989 - Mar 1991
-17.16
Sep 1989 - Apr 1991
-20.01
Sep 1989 - Apr 1991
-17.36
Feb 1994 - Apr 1996
-17.49
Feb 1994 - Apr 1996
-17.35
Feb 1994 - Apr 1996
-16.70
Feb 1994 - Apr 1996
-17.35
Feb 1994 - Apr 1996
5 Worst Drawdowns - Average
-21.59 -22.14 -21.90 -21.58 -21.81
10 Worst Drawdowns - Average
-17.01 -17.26 -17.15 -17.22 -17.54

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