Technology To EUR Portfolio: Rebalancing Strategy

Data Source: from January 1975 to April 2024
Consolidated Returns as of 30 April 2024

Managing the Technology To EUR Portfolio with a yearly rebalancing, you would have obtained a 13.62% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 13.62%.

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 Apr 30, 2024

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

According to the available data source, we assume we built the portfolio on January 1975.

Portfolio returns are calculated in EUR, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
  • the adjustment for actual currency exchange rates (simulation derived from original US returns)
TECHNOLOGY TO EUR PORTFOLIO RETURNS
Period: January 1975 - April 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Apr 30, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~49Y)
Yearly Rebalancing 39.11 (1) 19.53 (5) 21.08 (10) 13.62 (30) 14.63 (50)
Half Yearly Rebalancing 39.11 (2) 19.53 (10) 21.08 (20) 13.62 (60) 14.63 (99)
Quarterly Rebalancing 39.11 (4) 19.53 (20) 21.08 (40) 13.62 (120) 14.63 (198)
5% Tolerance per asset 39.11 (0) 19.53 (0) 21.08 (0) 13.62 (0) 14.63 (0)
10% Tolerance per asset 39.11 (0) 19.53 (0) 21.08 (0) 13.62 (0) 14.63 (0)

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

Performances as of Apr 30, 2024

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

TECHNOLOGY TO EUR PORTFOLIO PERFORMANCES
Period: January 1975 - April 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
Yearly Rebalancing 14.63 (50) 24.40 0.60 -81.66 0.18
Half Yearly Rebalancing 14.63 (99) 24.40 0.60 -81.66 0.18
Quarterly Rebalancing 14.63 (198) 24.40 0.60 -81.66 0.18
5% Tolerance per asset 14.63 (0) 24.40 0.60 -81.66 0.18
10% Tolerance per asset 14.63 (0) 24.40 0.60 -81.66 0.18
(*) Since Jan 1975 (~49 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Apr 30, 2024

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

TECHNOLOGY TO EUR PORTFOLIO DRAWDOWNS
Period: January 1975 - April 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-81.66
Apr 2000 - Dec 2017
-81.66
Apr 2000 - Dec 2017
-81.66
Apr 2000 - Dec 2017
-81.66
Apr 2000 - Dec 2017
-81.66
Apr 2000 - Dec 2017
-40.77
Sep 1987 - May 1989
-40.77
Sep 1987 - May 1989
-40.77
Sep 1987 - May 1989
-40.77
Sep 1987 - May 1989
-40.77
Sep 1987 - May 1989
-39.95
Sep 1989 - Mar 1991
-39.95
Sep 1989 - Mar 1991
-39.95
Sep 1989 - Mar 1991
-39.95
Sep 1989 - Mar 1991
-39.95
Sep 1989 - Mar 1991
-30.05
Jan 2022 - Nov 2023
-30.05
Jan 2022 - Nov 2023
-30.05
Jan 2022 - Nov 2023
-30.05
Jan 2022 - Nov 2023
-30.05
Jan 2022 - Nov 2023
-25.36
Jun 1986 - Aug 1987
-25.36
Jun 1986 - Aug 1987
-25.36
Jun 1986 - Aug 1987
-25.36
Jun 1986 - Aug 1987
-25.36
Jun 1986 - Aug 1987
5 Worst Drawdowns - Average
-43.56 -43.56 -43.56 -43.56 -43.56
10 Worst Drawdowns - Average
-32.04 -32.04 -32.04 -32.04 -32.04

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