Total Bond Developed World To EUR Hedged Portfolio: Rebalancing Strategy

Data Source: from August 1974 to May 2024
Consolidated Returns as of 31 May 2024

Managing the Total Bond Developed World To EUR Hedged Portfolio with a yearly rebalancing, you would have obtained a 2.70% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 2.70%.

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 Total Bond Developed World To EUR Hedged Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on August 1974.

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.
TOTAL BOND DEVELOPED WORLD TO EUR HEDGED PORTFOLIO RETURNS
Period: August 1974 - 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
(~50Y)
Yearly Rebalancing -0.81 (1) -2.56 (5) -0.36 (10) 2.70 (30) 5.95 (50)
Half Yearly Rebalancing -0.81 (2) -2.56 (10) -0.36 (20) 2.70 (60) 5.95 (99)
Quarterly Rebalancing -0.81 (4) -2.56 (20) -0.36 (40) 2.70 (120) 5.95 (199)
5% Tolerance per asset -0.81 (0) -2.56 (0) -0.36 (0) 2.70 (0) 5.95 (0)
10% Tolerance per asset -0.81 (0) -2.56 (0) -0.36 (0) 2.70 (0) 5.95 (0)

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

Performances as of May 31, 2024

Historical returns and stats of Total Bond Developed World To EUR Hedged Portfolio, after implementing different rebalancing strategies.

TOTAL BOND DEVELOPED WORLD TO EUR HEDGED PORTFOLIO PERFORMANCES
Period: August 1974 - 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 5.95 (50) 5.13 1.16 -20.51 0.29
Half Yearly Rebalancing 5.95 (99) 5.13 1.16 -20.51 0.29
Quarterly Rebalancing 5.95 (199) 5.13 1.16 -20.51 0.29
5% Tolerance per asset 5.95 (0) 5.13 1.16 -20.51 0.29
10% Tolerance per asset 5.95 (0) 5.13 1.16 -20.51 0.29
(*) Since Aug 1974 (~50 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of May 31, 2024

Historical Drawdowns of Total Bond Developed World To EUR Hedged Portfolio, after implementing different rebalancing strategies.

TOTAL BOND DEVELOPED WORLD TO EUR HEDGED PORTFOLIO DRAWDOWNS
Period: August 1974 - May 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-20.51
Aug 2020 - In progress
-20.51
Aug 2020 - In progress
-20.51
Aug 2020 - In progress
-20.51
Aug 2020 - In progress
-20.51
Aug 2020 - In progress
-12.11
Feb 1994 - Dec 1995
-12.11
Feb 1994 - Dec 1995
-12.11
Feb 1994 - Dec 1995
-12.11
Feb 1994 - Dec 1995
-12.11
Feb 1994 - Dec 1995
-8.30
Sep 1989 - Mar 1991
-8.30
Sep 1989 - Mar 1991
-8.30
Sep 1989 - Mar 1991
-8.30
Sep 1989 - Mar 1991
-8.30
Sep 1989 - Mar 1991
-6.72
Jun 1979 - Jun 1980
-6.72
Jun 1979 - Jun 1980
-6.72
Jun 1979 - Jun 1980
-6.72
Jun 1979 - Jun 1980
-6.72
Jun 1979 - Jun 1980
-6.08
Jul 2016 - Jul 2019
-6.08
Jul 2016 - Jul 2019
-6.08
Jul 2016 - Jul 2019
-6.08
Jul 2016 - Jul 2019
-6.08
Jul 2016 - Jul 2019
5 Worst Drawdowns - Average
-10.74 -10.74 -10.74 -10.74 -10.74
10 Worst Drawdowns - Average
-7.39 -7.39 -7.39 -7.39 -7.39

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