Aim Ways Shield Strategy To EUR Bond Hedged Portfolio: ETF allocation and returns

Data Source: from January 1985 to May 2024 (~39 years)
Consolidated Returns as of 31 May 2024
Currency: EUR

The Aim Ways Shield Strategy To EUR Bond Hedged Portfolio can be implemented with 6 ETFs. This portfolio has a high risk, indicating it can undergo considerable value changes. It is appropriate for investors with a high risk tolerance who are aiming for higher returns and can handle notable drawdowns.

The asset allocation is the following: 42% on the Stock Market, 38% on Fixed Income, 20% on Commodities. In general, bonds are useful for mitigating overall portfolio risk, especially if they are issued by national entities or highly reliable companies. This portfolio has a 38% allocation to bonds, leading to its classification as high risk.

In the last 30 Years, the Aim Ways Shield Strategy To EUR Bond Hedged Portfolio obtained a 8.82% compound annual return, with a 8.53% standard deviation. It suffered a maximum drawdown of -24.42% that required 65 months to be recovered.

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About the Author: Aim Ways

Aim Ways

Hello. I am "AIM WAYS". I was bord in 1969; I live in Italy and I'm Italian; my name is Carmine.

For almost 15 years -I was not yet 21 years old- I was a tied-agent on behalf of a leading Italian asset management company. Thereafter, I abandoned single-mandate model, and for 13 years I was involved in straightforward consulting.

With changing regulations in the industry sector, in 2018 I decided to permanently abandon the classic 'Output-Economy' approach (focused on the placement of instruments) to face a new concept: financial coaching.

Challenge consists in being able to generate income revenues (for me), with value and full reward for the investor/prospect.

It is the cornerstone of the 'Outcome-Economy': a new 'ecosystem' in which, RELATIONSHIP (Advisory), is the main pillar, through major tool: 'Goal based investing'; my policy does NOT allow "recommenda- tions on financial instruments."

Basically, I focus on the 'CORE' stages of <Consulting Process>; that is: once the 'anamnesis' is taken and the correct 'therapy' (including 'dosage') is identified, it will then be the interactor -now sufficiently learned- to choose both 'pharmacy' and specific 'medicine'.

After all these years professionally engaged in personal finance, I still manage to be passionate about the world of investments.

Portfolio Overview

Shield Strategy” was founded with purpose defending the investment from strong swings in the U.S. market. Each asset-class works differently as a "shield" for its management.

Strategy's goal:
Specifically, it's a blended 'shield’ against several kinds of market risks. By diversifying between different asset classes, it reduces the negative volatility of management, improving its resilience in cases of market shocks.

Selected asset-classes:
Equity generates potential long-term growth, but not without volatility. Gold is ‘safe-haven’ par excellence; i.e.: in times of uncertainty or instability, people seek refuge in gold to ‘neutralize’ (balance) downside from other financial assets in the portfolio.

3-7 year Treasuries: short-and medium-term govern. bonds, less volatile than equities, provide stability. Corporate invest. grade, rated AAA, offer higher yields than Treas. maintaining the degree of safety.

Choosing to include etf or index funds, also helps to improve efficiency of the strategy.

Asset Allocation and ETFs

The Aim Ways Shield Strategy To EUR Bond Hedged Portfolio has the following asset allocation:

42% Stocks
38% Fixed Income
20% Commodities

The Aim Ways Shield Strategy To EUR Bond Hedged Portfolio can be implemented with the following ETFs:

Weight
(%)
ETF
Ticker
ETF
Currency
ETF Name Investment Themes (Orig.Currency)
21.00
SXR8.DE
EUR iShares Core S&P 500 Equity, U.S., Large Cap (USD)
16.00
SXRV.DE
EUR iShares Nasdaq 100 Equity, U.S., Large Cap, Growth (USD)
5.00
IBCK.DE
EUR iShares Edge S&P 500 Minimum Volatility Equity, U.S., Large Cap (USD)
22.00
VDCE.DE
EUR
Hedged
Vanguard USD Corporate Bond EUR Hedged Bond, U.S., All-Term (USD)
16.00
CBUE.DE
EUR
Hedged
iShares USD Treasury Bond 3-7yr Eur Hedged Bond, U.S., Intermediate-Term (USD)
20.00
PHAU
EUR WisdomTree Physical Gold Commodity, Gold (USD)

Most of Lazy Portfolios are made of common components (asset classes), very simple and well defined. For a more complete view, find out the most common ETFs you can use to build your portfolio.

Portfolio and ETF Returns as of May 31, 2024

The Aim Ways Shield Strategy To EUR Bond Hedged Portfolio guaranteed the following returns.

Returns are calculated in EUR, assuming:
AIM WAYS SHIELD STRATEGY TO EUR BOND HEDGED PORTFOLIO
Consolidated returns as of 31 May 2024
Swipe left to see all data
  Chg (%) Return (%) Return (%) as of May 31, 2024
  1 Day Time ET(*) Jun 2024 1M 6M 1Y 5Y 10Y 30Y MAX
(~39Y)
Aim Ways Shield Strategy To EUR Bond Hedged Portfolio n.a. n.a. 1.11 10.18 14.12 10.09 9.23 8.82 8.63
Euro Inflation Adjusted return 1.11 8.26 11.49 6.19 6.76 6.63 6.34
Components
SXR8.DE
EUR iShares Core S&P 500 n.a. - n.a. 1.14 15.90 24.42 15.68 14.79 10.62 10.18
SXRV.DE
EUR iShares Nasdaq 100 n.a. - n.a. 2.12 16.08 26.84 21.72 20.56 13.65 12.66
IBCK.DE
EUR iShares Edge S&P 500 Minimum Volatility n.a. - n.a. 1.37 12.75 16.65 11.25 12.93 10.15 9.92
VDCE.DE
EUR
Hedged
Vanguard USD Corporate Bond EUR Hedged n.a. - n.a. 1.44 2.12 2.59 -0.23 1.06 4.65 6.24
CBUE.DE
EUR
Hedged
iShares USD Treasury Bond 3-7yr Eur Hedged n.a. - n.a. 1.01 0.30 -0.83 -1.76 -0.58 3.53 5.18
PHAU
EUR WisdomTree Physical Gold n.a. - n.a. 0.01 14.75 15.66 12.55 8.53 6.15 3.93
Returns over 1 year are annualized | Available data source: since Jan 1985
(*) Eastern Time (ET - America/New York)
Euro Inflation is updated to Apr 2024. Pending updates, the monthly inflation is set at 0% for the subsequent periods. Current inflation (annualized) is 1Y: 2.35% , 5Y: 3.67% , 10Y: 2.31% , 30Y: 2.06%

Capital Growth as of May 31, 2024

An investment of 1€, since June 1994, now would be worth 12.64€, with a total return of 1164.22% (8.82% annualized).

The Inflation Adjusted Capital now would be 6.86€, with a net total return of 586.23% (6.63% annualized).
An investment of 1€, since January 1985, now would be worth 26.09€, with a total return of 2509.17% (8.63% annualized).

The Inflation Adjusted Capital now would be 11.30€, with a net total return of 1029.73% (6.34% annualized).

Portfolio Metrics as of May 31, 2024

Metrics of Aim Ways Shield Strategy To EUR Bond Hedged Portfolio, updated as of 31 May 2024, provide a comprehensive overview of the portfolio's performance and risk characteristics.

These metrics include detailed data on returns, volatility, drawdowns and other key performance indicators. By examining them, you can gain insights into how the portfolio has performed over various time periods and understand its risk profile.

Metrics are calculated based on monthly returns, assuming:
AIM WAYS SHIELD STRATEGY TO EUR BOND HEDGED PORTFOLIO
Advanced Metrics
Data Source: 1 January 1985 - 31 May 2024 (~39 years)
Swipe left to see all data
Metrics as of May 31, 2024
1M 3M 6M 1Y 3Y 5Y 10Y 20Y 30Y MAX
(~39Y)
Investment Return (%) 1.11 3.55 10.18 14.12 6.99 10.09 9.23 8.50 8.82 8.63
Infl. Adjusted Return (%)
1.11 2.18 8.26 11.49 1.44 6.19 6.76 6.27 6.63 6.34
Euro Inflation (%) 0.00 1.34 1.78 2.35 5.48 3.67 2.31 2.09 2.06 2.15
Pending updates, the monthly inflation of May 2024 and beyond is set at 0%. Returns / Inflation rates over 1 year are annualized.
DRAWDOWN
Inflation Adjusted:
Inflation Adjusted:
1Y 3Y 5Y 10Y 20Y 30Y MAX
Deepest Drawdown Depth (%) -2.54 -12.28 -12.28 -12.28 -12.28 -24.42 -24.42
Start to Recovery (# months)
3 24 24 24 24 65 65
Start (yyyy mm) 2023 09 2022 01 2022 01 2022 01 2022 01 2000 09 2000 09
Start to Bottom (# months) 2 12 12 12 12 31 31
Bottom (yyyy mm) 2023 10 2022 12 2022 12 2022 12 2022 12 2003 03 2003 03
Bottom to End (# months) 1 12 12 12 12 34 34
End (yyyy mm) 2023 11 2023 12 2023 12 2023 12 2023 12 2006 01 2006 01
Longest Drawdown Depth (%)
same

same

same

same

same

same

same
Start to Recovery (# months)
Start (yyyy mm) 2023 09 2022 01 2022 01 2022 01 2022 01 2000 09 2000 09
Start to Bottom (# months) 2 12 12 12 12 31 31
Bottom (yyyy mm) 2023 10 2022 12 2022 12 2022 12 2022 12 2003 03 2003 03
Bottom to End (# months) 1 12 12 12 12 34 34
End (yyyy mm) 2023 11 2023 12 2023 12 2023 12 2023 12 2006 01 2006 01
Longest negative period (# months)
5 24 24 24 40 103 103
Period Start (yyyy mm) 2023 06 2021 11 2021 11 2021 11 2005 12 2000 09 2000 09
Period End (yyyy mm) 2023 10 2023 10 2023 10 2023 10 2009 03 2009 03 2009 03
Annualized Return (%) -1.21 -0.51 -0.51 -0.51 -0.30 -0.27 -0.27
Deepest Drawdown Depth (%) -3.45 -19.67 -19.67 -19.67 -19.67 -28.97 -28.97
Start to Recovery (# months)
4 29* 29* 29* 29* 114 114
Start (yyyy mm) 2023 08 2022 01 2022 01 2022 01 2022 01 2000 09 2000 09
Start to Bottom (# months) 3 12 12 12 12 31 31
Bottom (yyyy mm) 2023 10 2022 12 2022 12 2022 12 2022 12 2003 03 2003 03
Bottom to End (# months) 1 17 17 17 17 83 83
End (yyyy mm) 2023 11 - - - - 2010 02 2010 02
Longest Drawdown Depth (%)
same

same

same

same

same

same

same
Start to Recovery (# months)
Start (yyyy mm) 2023 08 2022 01 2022 01 2022 01 2022 01 2000 09 2000 09
Start to Bottom (# months) 3 12 12 12 12 31 31
Bottom (yyyy mm) 2023 10 2022 12 2022 12 2022 12 2022 12 2003 03 2003 03
Bottom to End (# months) 1 17 17 17 17 83 83
End (yyyy mm) 2023 11 - - - - 2010 02 2010 02
Longest negative period (# months)
5 34* 40 40 45 116 116
Period Start (yyyy mm) 2023 06 2021 08 2020 07 2020 07 2005 07 2000 01 2000 01
Period End (yyyy mm) 2023 10 2024 05 2023 10 2023 10 2009 03 2009 08 2009 08
Annualized Return (%) -3.83 -0.08 -0.26 -0.26 -0.41 -0.06 -0.06
Drawdowns / Negative periods marked with * are in progress
RISK INDICATORS
1Y 3Y 5Y 10Y 20Y 30Y MAX
Standard Deviation (%) 6.01 8.30 8.10 7.50 7.03 8.53 9.24
Sharpe Ratio 1.46 0.50 1.00 1.06 1.01 0.77 0.50
Sortino Ratio 2.05 0.69 1.36 1.49 1.42 1.06 0.69
Ulcer Index 0.95 5.46 4.37 3.35 3.32 7.09 6.89
Ratio: Return / Standard Deviation 2.35 0.84 1.25 1.23 1.21 1.03 0.93
Ratio: Return / Deepest Drawdown 5.56 0.57 0.82 0.75 0.69 0.36 0.35
Positive Months (%)
75.00 61.11 68.33 67.50 67.91 66.38 65.11
Positive Months 9 22 41 81 163 239 308
Negative Months 3 14 19 39 77 121 165
LONG TERM RETURNS
Inflation Adjusted:
Inflation Adjusted:
1Y 3Y 5Y 10Y 20Y 30Y MAX
Best 10 Years Return (%) - Annualized 9.23 10.68 10.68 17.29
Worst 10 Years Return (%) - Annualized 7.66 2.75 2.75
Best 10 Years Return (%) - Annualized 6.76 9.24 9.24 14.55
Worst 10 Years Return (%) - Annualized 5.67 0.69 0.69
TIMEFRAMES
Inflation Adjusted:
Inflation Adjusted:
1M 3M 6M 1Y 3Y 5Y 10Y 20Y 30Y MAX
··· Over the latest 30Y
Best Rolling Return (%) - Annualized 39.43 25.37 22.45 10.68 9.75 8.82
Worst Rolling Return (%) - Annualized -16.46 -7.40 -1.89 2.75 5.80
Positive Periods (%) 82.5 91.6 97.0 100.0 100.0 100.0
Best Rolling Return (%) - Annualized 37.39 23.72 20.51 9.24 7.80 6.63
Worst Rolling Return (%) - Annualized -19.67 -9.54 -4.00 0.69 4.08
Positive Periods (%) 77.6 84.6 94.6 100.0 100.0 100.0
95% VaR - Value at Risk (%) - Cumulative
3.31 4.80 5.50 8.05 3.87 0.00 0.00 0.00
95% CVaR - Conditional Value at Risk (%) 4.33 6.57 8.00 11.96 13.49 1.47 0.00 0.00
99% VaR - Value at Risk (%) - Cumulative
4.99 7.71 9.60 14.17 19.52 7.87 0.00 0.00
99% CVaR - Conditional Value at Risk (%) 6.06 9.56 12.22 15.90 21.89 9.22 0.00 0.00
Short term VaRs: analytical | 1+ year VaRs: historical data
Safe Withdrawal Rate (%) 88.70 26.99 16.07 8.47 5.46 8.23
Perpetual Withdrawal Rate (%) --- --- --- 0.60 3.08 7.03
% based on initial capital, inflation-adj. monthly withdrawals afterwards | Credits: BestRetirementPortfolio.com
··· All available data (Jan 1985 - May 2024)
Best Rolling Return (%) - Annualized 39.43 25.37 22.45 17.29 10.19 9.88
Worst Rolling Return (%) - Annualized -16.46 -7.40 -1.89 2.75 5.80 8.22
Positive Periods (%) 79.6 93.3 97.8 100.0 100.0 100.0
Best Rolling Return (%) - Annualized 37.39 23.72 20.51 14.55 7.80 7.87
Worst Rolling Return (%) - Annualized -19.67 -9.54 -4.00 0.69 4.08 6.01
Positive Periods (%) 75.3 87.4 96.1 100.0 100.0 100.0
95% VaR - Value at Risk (%) - Cumulative
3.66 5.42 6.38 7.65 2.20 0.00 0.00 0.00
95% CVaR - Conditional Value at Risk (%) 4.77 7.33 9.09 11.82 10.56 0.00 0.00 0.00
99% VaR - Value at Risk (%) - Cumulative
5.48 8.56 10.83 13.81 16.79 6.72 0.00 0.00
99% CVaR - Conditional Value at Risk (%) 6.63 10.57 13.67 15.19 21.10 8.77 0.00 0.00
Short term VaRs: analytical | 1+ year VaRs: historical data
Safe Withdrawal Rate (%) 88.70 26.99 16.07 8.47 5.46 6.73
Perpetual Withdrawal Rate (%) --- --- --- 0.60 3.08 5.64
% based on initial capital, inflation-adj. monthly withdrawals afterwards | Credits: BestRetirementPortfolio.com
Terms and Definitions
  • Annualized Portfolio Return: it's the annualized geometric mean return of the portfolio.
  • Deepest/Longest Drawdown: a drawdown refers to the decline in value from a relative peak value to a relative trough. The deepest (or maximum) drawdown is the maximum observed loss from a peak to a trough of a portfolio before a new peak is attained. The longest drawdown is the period observed from a peak to the subsequent peak with the greatest duration.
  • Longest negative period: it's the maximum period for which an overall negative return has been observed.
  • Standard Deviation: it's a measure of the dispersion of returns around the mean.
  • Sharpe Ratio: it's a measure of risk-adjusted performance of the portfolio. It's calculated by dividing the excess return of the portfolio over the risk-free rate by the portfolio standard deviation. The risk-free rate here considered is the 1-3 Mth T-Bill return.
  • Sortino Ratio: another measure of risk-adjusted performance of the portfolio. It's a modification of the Sharpe Ratio (same formula but the denominator is the portfolio downside standard deviation).
  • Ulcer Index: it's a measure of downside risk that quantifies the depth and duration of drawdowns in an investment portfolio.
  • Best/Worst 10Y returns: the best and the worst 10-year return over a time frame.
  • Rolling Returns: N-year returns over a time frame, calculated over all the available data source (best, worst, % of positive returns). Each rolling period, longer than the longest negative period, yielded a non-negative minimum return.
  • Value at Risk (VaR): it's an evaluation of a cumulative worst-case loss (in absolute value), associated with a probability (95%-99%) and a time horizon. For short term, it's calculated based on the expected return and standard deviation, assuming a normal distribution of monthly returns. For long term is retrieved by the historical rolling return data.
  • Conditional Value at Risk (CVaR): it represents the average expected loss if that worst-case threshold (95%-99%) is ever crossed.
  • Safe Withdrawal Rate (SWR): it's the percentage of the initial portfolio balance that can be withdrawn at the beginning of each month with inflation adjustment, without the portfolio running out of money in any case (money amount withdrawal).
    For instance: Your initial invested capital is 100.000$; withdrawal rate (annualized) is 4%. This means that, in the first month, you will withdraw 100.000 * 4% * 1/12 = 333.33$. The second month, you’ll withdraw 333.33$ plus the inflation monthly rate. You’ll continue adjusting your withdraw monthly for inflation.
  • Perpetual Withdrawal Rate (PWR): it's the percentage of the initial portfolio balance that can be withdrawn at the beginning of each month with inflation adjustment, preserving the original invested capital, adjusted for inflation too.

Portfolio Components Correlation

Correlation measures to what degree the returns of two assets move in relation to each other. It is a statistical measure that describes the extent to which the returns of one asset are related to the returns of another asset.

Correlation values range between -1 and +1
  • A correlation of +1 indicates that the returns of the two assets move in perfect synchrony; when one asset's returns go up, the other asset's returns also go up by the same percentage, and vice versa. This perfect positive correlation implies that the assets perform similarly in different market conditions.
  • A correlation of -1 indicates a perfect inverse relationship between the returns of the two assets. When one asset's returns go up, the other asset's returns go down by the same percentage. This perfect negative correlation suggests that the assets move in opposite directions, providing a diversification benefit by reducing overall portfolio risk.
  • A correlation of 0 means that there is no linear relationship between the returns of the two assets. The returns of one asset do not predict the returns of the other.
COMPONENTS MONTHLY CORRELATIONS
Monthly correlations as of 31 May 2024
Swipe left to see all data

If you want to learn more about historical correlations, you can find out here how the main asset class are correlated to each other.

Drawdowns

A drawdown refers to the decline in value from a relative peak value to a relative trough. A maximum drawdown is the maximum observed loss from a peak to a trough of a portfolio before a new peak is attained.

AIM WAYS SHIELD STRATEGY TO EUR BOND HEDGED PORTFOLIO
Drawdown periods
Drawdown periods - Inflation Adjusted
Data Source: 1 June 1994 - 31 May 2024 (30 Years)
Data Source: 1 January 1985 - 31 May 2024 (~39 years)
Inflation Adjusted:
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Rolling Returns

( more details)

A rolling return is a measure of investment performance that calculates the return of an investment over a set period of time, with the starting date rolling forward. This approach can provide a more accurate representation of the investment's historical performance and helps investors to evaluate the investment's consistency over time.

AIM WAYS SHIELD STRATEGY TO EUR BOND HEDGED PORTFOLIO
Annualized Rolling Returns
Annualized Rolling Returns - Inflation Adjusted
Data Source: 1 June 1994 - 31 May 2024 (30 Years)
Data Source: 1 January 1985 - 31 May 2024 (~39 years)
Inflation Adjusted:

If you need a deeper detail about rolling returns, please refer to the Aim Ways Shield Strategy To EUR Bond Hedged Portfolio: Rolling Returns page.

Seasonality

In which months is it better to invest in Aim Ways Shield Strategy To EUR Bond Hedged Portfolio?

Both the Average Return and the Gain Frequency (Win %) are useful to get an idea of what happened in the past.
For further information about the seasonality, check the Asset Class Seasonality page.
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Monthly Returns

This section provides a visual/tabular representation of the performance variability in the Aim Ways Shield Strategy To EUR Bond Hedged Portfolio over time. It illustrates the distribution of monthly returns, showcasing the range and frequency of positive and negative returns.

AIM WAYS SHIELD STRATEGY TO EUR BOND HEDGED PORTFOLIO
Monthly Returns Distribution
Data Source: 1 June 1994 - 31 May 2024 (30 Years)
Data Source: 1 January 1985 - 31 May 2024 (~39 years)
239 Positive Months (66%) - 121 Negative Months (34%)
308 Positive Months (65%) - 165 Negative Months (35%)
Swipe left to see all data
(Scroll down to see all data)
Investment Returns, up to August 2020, have been derived using the historical series of equivalent ETFs / Assets, instead of the actual ETFs of the portfolio.
You can find additional information on extended Data Sources here.

In particular, the series derived from equivalent datasets are:
  • iShares Core S&P 500 (SXR8.DE), up to April 2014
  • iShares Nasdaq 100 (SXRV.DE), up to June 2010
  • iShares Edge S&P 500 Minimum Volatility (IBCK.DE), up to April 2014
  • Vanguard USD Corporate Bond EUR Hedged (VDCE.DE), up to August 2020
  • iShares USD Treasury Bond 3-7yr Eur Hedged (CBUE.DE), up to March 2019
  • WisdomTree Physical Gold (PHAU), up to January 2008
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