Pinwheel To EUR Portfolio: Rebalancing Strategy

Data Source: from January 1976 to May 2024
Consolidated Returns as of 31 May 2024

Managing the Pinwheel To EUR Portfolio with a yearly rebalancing, you would have obtained a 7.43% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 7.37%.

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 Pinwheel To EUR 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)
PINWHEEL TO EUR PORTFOLIO RETURNS
Period: January 1976 - 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
(~48Y)
Yearly Rebalancing 13.31 (1) 8.15 (5) 7.86 (10) 7.43 (30) 9.48 (49)
Half Yearly Rebalancing 13.26 (2) 8.18 (10) 7.91 (20) 7.28 (60) 9.27 (97)
Quarterly Rebalancing 13.30 (4) 8.32 (20) 8.03 (40) 7.37 (120) 9.27 (194)
5% Tolerance per asset 13.94 (1) 8.04 (2) 7.79 (3) 7.51 (13) 9.48 (22)
10% Tolerance per asset 14.56 (0) 8.07 (0) 8.05 (1) 8.08 (6) 10.14 (9)

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

Performances as of May 31, 2024

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

PINWHEEL TO EUR PORTFOLIO PERFORMANCES
Period: January 1976 - 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 9.48 (49) 11.37 0.83 -28.89 0.33
Half Yearly Rebalancing 9.27 (97) 11.37 0.82 -29.92 0.31
Quarterly Rebalancing 9.27 (194) 11.40 0.81 -30.40 0.31
5% Tolerance per asset 9.48 (22) 11.44 0.83 -29.38 0.32
10% Tolerance per asset 10.14 (9) 11.65 0.87 -26.51 0.38
(*) Since Jan 1976 (~48 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of May 31, 2024

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

PINWHEEL TO EUR PORTFOLIO DRAWDOWNS
Period: January 1976 - May 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-28.89
Jun 2007 - Mar 2010
-29.92
Jun 2007 - Mar 2010
-30.40
Jun 2007 - Mar 2010
-29.38
Jun 2007 - Apr 2010
-26.51
Apr 2002 - Jun 2005
-26.90
Apr 2002 - Jun 2005
-27.14
Apr 2002 - Jun 2005
-26.99
Apr 2002 - Jun 2005
-26.86
Apr 2002 - Jun 2005
-24.71
Jun 1986 - Mar 1989
-25.31
Jun 1986 - Jan 1989
-25.54
Jun 1986 - Jan 1989
-25.15
Jun 1986 - Jan 1989
-25.26
Jun 1986 - Mar 1989
-24.42
Jun 2007 - Dec 2009
-22.75
Sep 1989 - May 1991
-23.00
Sep 1989 - May 1991
-22.80
Sep 1989 - May 1991
-23.33
Sep 1989 - May 1991
-23.54
Sep 1989 - May 1991
-21.38
Feb 1994 - Apr 1996
-21.44
Feb 1994 - May 1996
-21.24
Feb 1994 - Apr 1996
-21.93
Feb 1994 - Sep 1996
-21.47
Feb 1994 - May 1996
5 Worst Drawdowns - Average
-25.04 -25.41 -25.31 -25.35 -24.13
10 Worst Drawdowns - Average
-19.28 -19.48 -19.45 -19.43 -19.08

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