Stocks/Bonds 40/60 2x Leveraged Portfolio: Rebalancing Strategy

Data Source: from March 2010 to February 2024
Consolidated Returns as of 29 February 2024

Managing the Stocks/Bonds 40/60 2x Leveraged Portfolio with a yearly rebalancing, you would have obtained a 8.05% compound annual return in the last 10 Years.

With a quarterly rebalancing, over the same period, the return would have been 8.77%.

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 Feb 29, 2024

Implementing different rebalancing strategies, the Stocks/Bonds 40/60 2x Leveraged Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on March 2010.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
STOCKS/BONDS 40/60 2X LEVERAGED PORTFOLIO RETURNS
Period: March 2010 - February 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Feb 29, 2024
Rebalancing Strategy 1Y 5Y 10Y MAX
(~14Y)
Yearly Rebalancing 18.45 (1) 6.98 (5) 8.05 (10) 11.28 (14)
Half Yearly Rebalancing 17.57 (2) 7.22 (10) 8.20 (20) 11.38 (28)
Quarterly Rebalancing 17.13 (4) 8.01 (20) 8.77 (40) 12.02 (56)
5% Tolerance per asset 17.70 (1) 7.31 (8) 8.32 (12) 11.52 (21)
10% Tolerance per asset 18.50 (0) 8.38 (4) 9.04 (6) 11.68 (7)

In order to have complete information about the portfolio, please refer to the Stocks/Bonds 40/60 2x Leveraged Portfolio: ETF allocation and returns page.

Performances as of Feb 29, 2024

Historical returns and stats of Stocks/Bonds 40/60 2x Leveraged Portfolio, after implementing different rebalancing strategies.

STOCKS/BONDS 40/60 2X LEVERAGED PORTFOLIO PERFORMANCES
Period: March 2010 - February 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
Yearly Rebalancing 11.28 (14) 13.29 0.85 -36.46 0.31
Half Yearly Rebalancing 11.38 (28) 13.45 0.85 -36.42 0.31
Quarterly Rebalancing 12.02 (56) 13.52 0.89 -36.31 0.33
5% Tolerance per asset 11.52 (21) 13.54 0.85 -36.69 0.31
10% Tolerance per asset 11.68 (7) 13.53 0.86 -36.46 0.32
(*) Since Mar 2010 (~14 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Feb 29, 2024

Historical Drawdowns of Stocks/Bonds 40/60 2x Leveraged Portfolio, after implementing different rebalancing strategies.

STOCKS/BONDS 40/60 2X LEVERAGED PORTFOLIO DRAWDOWNS
Period: March 2010 - February 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-36.46
Jan 2022 - In progress
-36.42
Jan 2022 - In progress
-36.31
Jan 2022 - In progress
-36.69
Jan 2022 - In progress
-36.46
Jan 2022 - In progress
-9.59
Sep 2018 - Mar 2019
-9.03
Sep 2018 - Mar 2019
-7.74
Sep 2018 - Feb 2019
-9.35
Feb 2020 - Apr 2020
-8.44
Sep 2018 - Mar 2019
-7.29
Feb 2020 - May 2020
-7.29
Feb 2020 - May 2020
-7.29
Feb 2020 - Apr 2020
-8.44
Sep 2018 - Mar 2019
-8.14
Feb 2020 - Apr 2020
-7.11
Feb 2018 - Aug 2018
-7.12
Sep 2020 - Nov 2020
-7.11
Feb 2018 - Aug 2018
-6.88
Sep 2020 - Nov 2020
-7.00
Mar 2015 - Mar 2016
-6.54
Aug 2016 - Feb 2017
-7.11
Feb 2018 - Aug 2018
-7.03
Sep 2020 - Nov 2020
-6.72
Feb 2018 - Aug 2018
-6.88
Sep 2020 - Nov 2020
5 Worst Drawdowns - Average
-13.40 -13.40 -13.10 -13.62 -13.38
10 Worst Drawdowns - Average
-9.48 -9.47 -9.29 -9.64 -9.48

For a deeper insight, please refer to the Stocks/Bonds 40/60 2x Leveraged Portfolio: ETF allocation and returns page.