Stocks/Bonds 60/40 ESG Portfolio: Rebalancing Strategy

Data Source: from September 2005 to November 2024
Consolidated Returns as of 30 November 2024

Managing the Stocks/Bonds 60/40 ESG Portfolio with a yearly rebalancing, you would have obtained a 8.73% compound annual return in the last 10 Years.

With a quarterly rebalancing, over the same period, the return would have been 7.48%.

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 Nov 30, 2024

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

According to the available data source, we assume we built the portfolio on September 2005.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
STOCKS/BONDS 60/40 ESG PORTFOLIO RETURNS
Period: September 2005 - November 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Nov 30, 2024
Rebalancing Strategy 1Y 5Y 10Y MAX
(~19Y)
No Rebalancing 29.02 (0) 11.81 (0) 8.73 (0) 8.18 (0)
Yearly Rebalancing 23.45 (1) 9.54 (5) 7.53 (10) 7.83 (19)
Half Yearly Rebalancing 23.07 (2) 9.44 (10) 7.48 (20) 7.76 (38)
Quarterly Rebalancing 22.95 (4) 9.52 (20) 7.52 (40) 7.74 (77)
5% Tolerance per asset 23.51 (1) 9.44 (3) 7.44 (4) 7.75 (11)
10% Tolerance per asset 23.87 (0) 9.72 (1) 7.68 (2) 7.91 (4)

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

Performances as of Nov 30, 2024

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

STOCKS/BONDS 60/40 ESG PORTFOLIO PERFORMANCES
Period: September 2005 - November 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 8.18 (0) 11.60 0.71 -33.20 0.25
Yearly Rebalancing 7.83 (19) 10.83 0.72 -32.78 0.24
Half Yearly Rebalancing 7.76 (38) 10.88 0.71 -33.35 0.23
Quarterly Rebalancing 7.74 (77) 10.96 0.71 -33.92 0.23
5% Tolerance per asset 7.75 (11) 11.02 0.70 -33.49 0.23
10% Tolerance per asset 7.91 (4) 11.22 0.71 -33.80 0.23
(*) Since Sep 2005 (~19 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Nov 30, 2024

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

STOCKS/BONDS 60/40 ESG PORTFOLIO DRAWDOWNS
Period: September 2005 - November 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-33.20
Nov 2007 - Apr 2010
-32.78
Nov 2007 - Mar 2010
-33.35
Nov 2007 - Mar 2010
-33.92
Nov 2007 - Mar 2010
-33.49
Nov 2007 - Mar 2010
-33.80
Nov 2007 - Mar 2010
-24.96
Jan 2022 - Feb 2024
-22.44
Jan 2022 - Feb 2024
-22.44
Jan 2022 - Feb 2024
-22.50
Jan 2022 - Feb 2024
-22.71
Jan 2022 - Feb 2024
-22.44
Jan 2022 - Mar 2024
-14.29
May 2011 - Sep 2012
-14.77
May 2011 - Sep 2012
-14.65
May 2011 - Sep 2012
-14.59
May 2011 - Aug 2012
-14.77
May 2011 - Sep 2012
-16.62
May 2011 - Sep 2012
-12.96
Feb 2020 - Jun 2020
-10.57
Feb 2020 - Jun 2020
-10.57
Feb 2020 - Jun 2020
-10.57
Feb 2020 - May 2020
-11.30
Feb 2020 - Jun 2020
-10.75
Feb 2020 - Jun 2020
-12.21
Feb 2018 - Jun 2019
-10.20
Feb 2018 - Apr 2019
-10.29
Feb 2018 - Apr 2019
-10.21
Feb 2018 - Apr 2019
-10.70
Feb 2018 - Apr 2019
-10.20
Feb 2018 - Apr 2019
5 Worst Drawdowns - Average
-19.53 -18.15 -18.26 -18.36 -18.59 -18.76
10 Worst Drawdowns - Average
-12.63 -11.77 -11.80 -11.82 -12.01 -12.27

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