US Stocks/Bonds 20/80 To EUR Hedged Portfolio: Rebalancing Strategy
Managing the US Stocks/Bonds 20/80 To EUR Hedged Portfolio with a yearly rebalancing, you would have obtained a 8.63% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 4.59%.
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, 2026
Implementing different rebalancing strategies, the US Stocks/Bonds 20/80 To EUR Hedged Portfolio guaranteed the following returns.
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.
| Return (%) and number of rebalances as of Jun 30, 2026 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~77Y) |
|||||
| No Rebalancing | 17.71 | (0) | 9.17 | (0) | 11.59 | (0) | 8.63 | (0) | 8.85 | (0) |
| Yearly Rebalancing | 5.36 | (1) | 0.67 | (5) | 2.27 | (10) | 4.67 | (30) | 6.29 | (77) |
| Half Yearly Rebalancing | 5.36 | (2) | 0.57 | (10) | 2.23 | (20) | 4.59 | (60) | 6.25 | (153) |
| Quarterly Rebalancing | 5.49 | (4) | 0.61 | (20) | 2.27 | (40) | 4.65 | (120) | 6.25 | (306) |
| 5% Tolerance per asset | 5.94 | (1) | 0.73 | (2) | 2.37 | (4) | 4.71 | (11) | 6.34 | (26) |
| 10% Tolerance per asset | 6.39 | (1) | 0.97 | (1) | 2.70 | (3) | 4.67 | (4) | 6.33 | (8) |
In order to have complete information about the portfolio, please refer to the US Stocks/Bonds 20/80 To EUR Hedged Portfolio: ETF allocation and returns page.
Performances as of Jun 30, 2026
Historical returns and stats of US Stocks/Bonds 20/80 To EUR Hedged Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 8.85 | (0) | 11.15 | 0.79 | -41.15 | 0.22 |
| Yearly Rebalancing | 6.29 | (77) | 5.67 | 1.11 | -18.52 | 0.34 |
| Half Yearly Rebalancing | 6.25 | (153) | 5.66 | 1.11 | -18.56 | 0.34 |
| Quarterly Rebalancing | 6.25 | (306) | 5.67 | 1.10 | -18.61 | 0.34 |
| 5% Tolerance per asset | 6.34 | (26) | 5.69 | 1.11 | -18.76 | 0.34 |
| 10% Tolerance per asset | 6.33 | (8) | 5.82 | 1.09 | -18.76 | 0.34 |
Drawdowns as of Jun 30, 2026
Historical Drawdowns of US Stocks/Bonds 20/80 To EUR Hedged Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-41.15
Nov 2007 - Feb 2011
|
-18.52
Sep 2021 - Feb 2026
|
-18.56
Sep 2021 - Feb 2026
|
-18.61
Sep 2021 - Feb 2026
|
-18.76
Sep 2021 - Feb 2026
|
-18.76
Sep 2021 - Oct 2025
|
|
-35.37
Apr 2000 - Jul 2005
|
-11.37
Aug 1980 - Nov 1981
|
-11.35
Aug 1980 - Nov 1981
|
-11.57
Aug 1980 - Nov 1981
|
-11.00
Sep 1979 - May 1980
|
-12.41
Sep 1968 - Nov 1970
|
|
-31.41
Jan 1973 - Jun 1976
|
-11.01
Sep 1968 - Nov 1970
|
-11.04
Sep 1968 - Nov 1970
|
-11.19
Sep 1968 - Nov 1970
|
-10.87
Aug 1980 - Nov 1981
|
-11.99
Jul 1980 - Aug 1982
|
|
-24.71
Jan 2022 - Feb 2024
|
-10.95
Sep 1979 - May 1980
|
-10.97
Sep 1979 - May 1980
|
-11.00
Sep 1979 - May 1980
|
-10.43
Sep 1968 - Nov 1970
|
-11.81
Jan 1973 - May 1975
|
|
-22.65
Dec 1968 - Jan 1971
|
-9.31
Nov 1973 - Feb 1975
|
-9.84
Nov 1973 - Feb 1975
|
-9.74
Nov 1973 - Feb 1975
|
-9.19
Nov 1973 - Feb 1975
|
-9.30
Sep 1979 - May 1980
|
| 5 Worst Drawdowns - Average | |||||
| -31.06 | -12.23 | -12.35 | -12.42 | -12.05 | -12.85 |
| 10 Worst Drawdowns - Average | |||||
| -23.94 | -9.44 | -9.43 | -9.48 | -9.31 | -9.89 |
For a deeper insight, please refer to the US Stocks/Bonds 20/80 To EUR Hedged Portfolio: ETF allocation and returns page.