US Stocks/Bonds 20/80 To GBP Hedged Portfolio: Rebalancing Strategy
Managing the US Stocks/Bonds 20/80 To GBP Hedged Portfolio with a yearly rebalancing, you would have obtained a 10.26% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 5.60%.
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 GBP Hedged Portfolio guaranteed the following returns.
Portfolio returns are calculated in GBP, 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 (~227Y) |
|||||
| No Rebalancing | 21.16 | (0) | 11.31 | (0) | 13.48 | (0) | 10.26 | (0) | 7.70 | (0) |
| Yearly Rebalancing | 7.27 | (1) | 1.86 | (5) | 3.16 | (10) | 5.68 | (30) | 5.86 | (227) |
| Half Yearly Rebalancing | 7.25 | (2) | 1.76 | (10) | 3.12 | (20) | 5.60 | (60) | 5.87 | (453) |
| Quarterly Rebalancing | 7.38 | (4) | 1.79 | (20) | 3.17 | (40) | 5.67 | (120) | 5.88 | (906) |
| 5% Tolerance per asset | 7.58 | (1) | 1.91 | (2) | 3.27 | (4) | 5.70 | (10) | 5.86 | (49) |
| 10% Tolerance per asset | 8.84 | (1) | 2.24 | (2) | 3.63 | (3) | 5.69 | (4) | 5.86 | (16) |
In order to have complete information about the portfolio, please refer to the US Stocks/Bonds 20/80 To GBP Hedged Portfolio: ETF allocation and returns page.
Performances as of Jun 30, 2026
Historical returns and stats of US Stocks/Bonds 20/80 To GBP Hedged Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 7.70 | (0) | 10.96 | 0.70 | -70.99 | 0.11 |
| Yearly Rebalancing | 5.86 | (227) | 4.61 | 1.27 | -30.11 | 0.19 |
| Half Yearly Rebalancing | 5.87 | (453) | 4.64 | 1.26 | -29.99 | 0.20 |
| Quarterly Rebalancing | 5.88 | (906) | 4.66 | 1.26 | -29.85 | 0.20 |
| 5% Tolerance per asset | 5.86 | (49) | 4.66 | 1.26 | -30.42 | 0.19 |
| 10% Tolerance per asset | 5.86 | (16) | 4.65 | 1.26 | -31.01 | 0.19 |
Drawdowns as of Jun 30, 2026
Historical Drawdowns of US Stocks/Bonds 20/80 To GBP Hedged Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-70.99
Sep 1929 - Dec 1944
|
-30.11
Jan 1839 - Nov 1843
|
-29.99
Jan 1839 - Nov 1843
|
-29.85
Jan 1839 - Oct 1843
|
-30.42
Jan 1839 - Nov 1843
|
-31.01
Jan 1839 - Nov 1843
|
|
-48.99
Nov 2007 - Apr 2011
|
-19.40
Jun 1930 - May 1933
|
-19.91
Jun 1930 - May 1933
|
-20.77
Jun 1930 - May 1933
|
-20.32
Jun 1930 - May 1933
|
-17.35
Sep 1929 - May 1933
|
|
-43.87
Jan 1973 - Mar 1976
|
-17.13
Jan 2022 - Jun 2025
|
-16.98
Sep 2021 - Jul 2025
|
-16.98
Sep 2021 - Jul 2025
|
-17.28
Jan 2022 - Jun 2025
|
-17.20
Sep 2021 - Jun 2025
|
|
-42.20
Sep 2000 - Jul 2005
|
-11.22
Jul 1895 - Jul 1897
|
-11.29
Mar 1937 - May 1939
|
-11.52
Mar 1937 - May 1939
|
-11.12
Jul 1895 - Jul 1897
|
-11.43
Jul 1895 - Jul 1897
|
|
-31.01
Jan 1839 - Nov 1843
|
-10.93
Mar 1937 - May 1939
|
-11.17
Jul 1895 - Jul 1897
|
-11.10
Jul 1895 - Jul 1897
|
-11.09
Mar 1937 - Oct 1938
|
-10.56
Dec 1968 - Nov 1970
|
| 5 Worst Drawdowns - Average | |||||
| -47.41 | -17.76 | -17.87 | -18.04 | -18.05 | -17.51 |
| 10 Worst Drawdowns - Average | |||||
| -36.18 | -12.64 | -12.80 | -12.93 | -12.96 | -13.15 |
For a deeper insight, please refer to the US Stocks/Bonds 20/80 To GBP Hedged Portfolio: ETF allocation and returns page.