Managing the US Stocks/Bonds 60/40 To GBP Hedged Portfolio with a yearly rebalancing, you would have obtained a 10.19% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 8.09%.
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 Apr 30, 2026
Implementing different rebalancing strategies, the US Stocks/Bonds 60/40 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 Apr 30, 2026 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~226Y) |
|||||
| No Rebalancing | 30.37 | (0) | 11.04 | (0) | 13.24 | (0) | 10.19 | (0) | 8.21 | (0) |
| Yearly Rebalancing | 18.98 | (1) | 6.60 | (5) | 8.32 | (10) | 8.22 | (30) | 7.37 | (227) |
| Half Yearly Rebalancing | 18.94 | (2) | 6.46 | (10) | 8.28 | (20) | 8.09 | (60) | 7.38 | (453) |
| Quarterly Rebalancing | 19.38 | (4) | 6.48 | (20) | 8.35 | (40) | 8.20 | (120) | 7.39 | (906) |
| 5% Tolerance per asset | 19.52 | (0) | 6.55 | (2) | 8.35 | (5) | 8.22 | (20) | 7.38 | (105) |
| 10% Tolerance per asset | 19.97 | (0) | 6.84 | (1) | 8.62 | (2) | 8.37 | (8) | 7.44 | (33) |
In order to have complete information about the portfolio, please refer to the US Stocks/Bonds 60/40 To GBP Hedged Portfolio: ETF allocation and returns page.
Performances as of Apr 30, 2026
Historical returns and stats of US Stocks/Bonds 60/40 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 | 8.21 | (0) | 13.34 | 0.62 | -82.02 | 0.10 |
| Yearly Rebalancing | 7.37 | (227) | 9.21 | 0.80 | -61.93 | 0.12 |
| Half Yearly Rebalancing | 7.38 | (453) | 9.30 | 0.79 | -61.82 | 0.12 |
| Quarterly Rebalancing | 7.39 | (906) | 9.35 | 0.79 | -62.29 | 0.12 |
| 5% Tolerance per asset | 7.38 | (105) | 9.36 | 0.79 | -63.68 | 0.12 |
| 10% Tolerance per asset | 7.44 | (33) | 9.45 | 0.79 | -62.32 | 0.12 |
Drawdowns as of Apr 30, 2026
Historical Drawdowns of US Stocks/Bonds 60/40 To GBP Hedged Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-82.02
Sep 1929 - Feb 1945
|
-61.93
Sep 1929 - Oct 1936
|
-61.82
Sep 1929 - Mar 1936
|
-62.29
Sep 1929 - Feb 1936
|
-63.68
Sep 1929 - Jul 1936
|
-62.32
Sep 1929 - Jul 1936
|
|
-49.42
Nov 2007 - Apr 2011
|
-32.33
Mar 1937 - Feb 1943
|
-32.81
Mar 1937 - Feb 1943
|
-33.13
Mar 1937 - Feb 1943
|
-33.00
Mar 1937 - Feb 1943
|
-32.68
Mar 1937 - Jan 1943
|
|
-44.81
Jan 1973 - Mar 1976
|
-31.21
Jan 1839 - Jul 1843
|
-30.89
Jan 1839 - Jul 1843
|
-30.61
Jan 1839 - Jul 1843
|
-30.34
Jan 1839 - Jul 1843
|
-31.42
Jan 1839 - Jul 1843
|
|
-42.60
Sep 2000 - Jul 2005
|
-28.66
Nov 2007 - Mar 2010
|
-29.44
Nov 2007 - Apr 2010
|
-29.97
Nov 2007 - Sep 2010
|
-30.07
Nov 2007 - Apr 2010
|
-30.77
Nov 2007 - Apr 2010
|
|
-30.80
Jan 1839 - Aug 1843
|
-26.13
Jan 1973 - Jun 1975
|
-26.96
Jan 1973 - Jun 1975
|
-26.97
Jan 1973 - Jun 1975
|
-27.29
Jan 1973 - Jun 1975
|
-28.42
Jan 1973 - Jan 1976
|
| 5 Worst Drawdowns - Average | |||||
| -49.93 | -36.05 | -36.38 | -36.60 | -36.88 | -37.12 |
| 10 Worst Drawdowns - Average | |||||
| -38.45 | -28.02 | -28.29 | -28.45 | -28.58 | -28.73 |
For a deeper insight, please refer to the US Stocks/Bonds 60/40 To GBP Hedged Portfolio: ETF allocation and returns page.
