Technology To EUR Hedged Portfolio: Rebalancing Strategy

Data Source: from January 1971 to May 2024
Consolidated Returns as of 31 May 2024

Managing the Technology To EUR Hedged Portfolio with a yearly rebalancing, you would have obtained a 13.39% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 13.39%.

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 May 31, 2024

Implementing different rebalancing strategies, the Technology To EUR Hedged Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1971.

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.
TECHNOLOGY TO EUR HEDGED PORTFOLIO RETURNS
Period: January 1971 - May 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of May 31, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~53Y)
Yearly Rebalancing 26.19 (1) 18.37 (5) 15.90 (10) 13.39 (30) 11.46 (54)
Half Yearly Rebalancing 26.19 (2) 18.37 (10) 15.90 (20) 13.39 (60) 11.46 (107)
Quarterly Rebalancing 26.19 (4) 18.37 (20) 15.90 (40) 13.39 (120) 11.46 (214)
5% Tolerance per asset 26.19 (0) 18.37 (0) 15.90 (0) 13.39 (0) 11.46 (0)
10% Tolerance per asset 26.19 (0) 18.37 (0) 15.90 (0) 13.39 (0) 11.46 (0)

In order to have complete information about the portfolio, please refer to the Technology To EUR Hedged Portfolio: ETF allocation and returns page.

Performances as of May 31, 2024

Historical returns and stats of Technology To EUR Hedged Portfolio, after implementing different rebalancing strategies.

TECHNOLOGY TO EUR HEDGED PORTFOLIO PERFORMANCES
Period: January 1971 - May 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
Yearly Rebalancing 11.46 (54) 22.39 0.51 -81.18 0.14
Half Yearly Rebalancing 11.46 (107) 22.39 0.51 -81.18 0.14
Quarterly Rebalancing 11.46 (214) 22.39 0.51 -81.18 0.14
5% Tolerance per asset 11.46 (0) 22.39 0.51 -81.18 0.14
10% Tolerance per asset 11.46 (0) 22.39 0.51 -81.18 0.14
(*) Since Jan 1971 (~53 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of May 31, 2024

Historical Drawdowns of Technology To EUR Hedged Portfolio, after implementing different rebalancing strategies.

TECHNOLOGY TO EUR HEDGED PORTFOLIO DRAWDOWNS
Period: January 1971 - May 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-81.18
Apr 2000 - Oct 2014
-81.18
Apr 2000 - Oct 2014
-81.18
Apr 2000 - Oct 2014
-81.18
Apr 2000 - Oct 2014
-81.18
Apr 2000 - Oct 2014
-59.27
Jan 1973 - Jan 1980
-59.27
Jan 1973 - Jan 1980
-59.27
Jan 1973 - Jan 1980
-59.27
Jan 1973 - Jan 1980
-59.27
Jan 1973 - Jan 1980
-35.43
Jan 2022 - Feb 2024
-35.43
Jan 2022 - Feb 2024
-35.43
Jan 2022 - Feb 2024
-35.43
Jan 2022 - Feb 2024
-35.43
Jan 2022 - Feb 2024
-34.97
Sep 1987 - Aug 1989
-34.97
Sep 1987 - Aug 1989
-34.97
Sep 1987 - Aug 1989
-34.97
Sep 1987 - Aug 1989
-34.97
Sep 1987 - Aug 1989
-31.33
Jul 1983 - Feb 1986
-31.33
Jul 1983 - Feb 1986
-31.33
Jul 1983 - Feb 1986
-31.33
Jul 1983 - Feb 1986
-31.33
Jul 1983 - Feb 1986
5 Worst Drawdowns - Average
-48.44 -48.44 -48.44 -48.44 -48.44
10 Worst Drawdowns - Average
-35.54 -35.54 -35.54 -35.54 -35.54

For a deeper insight, please refer to the Technology To EUR Hedged Portfolio: ETF allocation and returns page.