Managing the Ray Dalio All Weather Portfolio To GBP with a yearly rebalancing, you would have obtained a 10.92% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 7.81%.
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, 2025
Implementing different rebalancing strategies, the Ray Dalio All Weather Portfolio To GBP 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)
| Return (%) and number of rebalances as of Jun 30, 2025 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~155Y) |
|||||
| No Rebalancing | 5.39 | (0) | 13.77 | (0) | 14.66 | (0) | 10.92 | (0) | 9.34 | (0) |
| Yearly Rebalancing | 0.75 | (1) | 0.98 | (5) | 6.86 | (10) | 7.91 | (30) | 7.28 | (155) |
| Half Yearly Rebalancing | 0.31 | (2) | 0.99 | (10) | 6.93 | (20) | 7.81 | (60) | 7.27 | (309) |
| Quarterly Rebalancing | 0.67 | (4) | 0.93 | (20) | 7.06 | (40) | 7.85 | (120) | 7.27 | (618) |
| 5% Tolerance per asset | 0.72 | (1) | 1.29 | (5) | 7.11 | (7) | 7.72 | (18) | 7.33 | (87) |
| 10% Tolerance per asset | 1.14 | (0) | 1.41 | (2) | 7.26 | (3) | 7.88 | (6) | 7.43 | (28) |
In order to have complete information about the portfolio, please refer to the Ray Dalio All Weather Portfolio To GBP: ETF allocation and returns page.
Performances as of Jun 30, 2025
Historical returns and stats of Ray Dalio All Weather Portfolio To GBP, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 9.34 | (0) | 13.78 | 0.68 | -64.40 | 0.15 |
| Yearly Rebalancing | 7.28 | (155) | 8.16 | 0.89 | -22.16 | 0.33 |
| Half Yearly Rebalancing | 7.27 | (309) | 8.20 | 0.89 | -21.46 | 0.34 |
| Quarterly Rebalancing | 7.27 | (618) | 8.21 | 0.89 | -22.27 | 0.33 |
| 5% Tolerance per asset | 7.33 | (87) | 8.23 | 0.89 | -23.01 | 0.32 |
| 10% Tolerance per asset | 7.43 | (28) | 8.27 | 0.90 | -21.91 | 0.34 |
Drawdowns as of Jun 30, 2025
Historical Drawdowns of Ray Dalio All Weather Portfolio To GBP, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-64.40
Sep 1929 - Mar 1940
|
-22.16
Dec 1986 - Apr 1989
|
-21.46
Dec 1986 - Mar 1989
|
-22.27
Sep 1931 - May 1933
|
-23.01
Sep 1931 - Jun 1933
|
-21.91
Dec 1986 - Apr 1989
|
|
-47.82
Sep 2000 - Dec 2010
|
-20.85
Sep 1931 - Jun 1935
|
-20.82
Sep 1931 - Jun 1933
|
-21.18
Dec 1986 - Mar 1989
|
-20.93
Dec 1986 - Mar 1989
|
-20.22
Sep 1931 - Aug 1932
|
|
-44.68
Jan 1973 - Jan 1976
|
-19.09
Dec 1989 - Apr 1991
|
-18.95
Dec 1989 - Apr 1991
|
-18.77
Dec 1989 - Apr 1991
|
-18.40
Dec 1989 - Mar 1991
|
-17.81
Dec 1989 - Apr 1991
|
|
-36.66
Sep 1987 - May 1989
|
-16.49
Jan 2009 - Mar 2010
|
-16.49
Jan 2009 - Apr 2010
|
-16.45
Jan 2009 - Apr 2010
|
-17.03
Jan 2009 - Apr 2010
|
-17.03
Jan 2009 - Mar 2010
|
|
-30.38
Sep 1989 - May 1991
|
-15.58
Jan 1920 - Nov 1923
|
-15.79
Mar 1937 - Oct 1938
|
-16.07
Mar 1937 - Sep 1938
|
-16.05
Mar 1937 - Sep 1938
|
-15.90
Mar 1937 - Oct 1938
|
| 5 Worst Drawdowns - Average | |||||
| -44.79 | -18.84 | -18.70 | -18.95 | -19.08 | -18.57 |
| 10 Worst Drawdowns - Average | |||||
| -33.93 | -16.47 | -16.45 | -16.56 | -16.68 | -16.50 |
For a deeper insight, please refer to the Ray Dalio All Weather Portfolio To GBP: ETF allocation and returns page.
