US Stocks ESG Portfolio: Rebalancing Strategy

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

Managing the US Stocks ESG Portfolio with a yearly rebalancing, you would have obtained a 10.16% compound annual return in the last 10 Years.

With a quarterly rebalancing, over the same period, the return would have been 10.16%.

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 Jun 30, 2024

Implementing different rebalancing strategies, the US Stocks 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
US STOCKS ESG PORTFOLIO RETURNS
Period: September 2005 - June 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Jun 30, 2024
Rebalancing Strategy 1Y 5Y 10Y MAX
(~19Y)
Yearly Rebalancing 24.90 (1) 14.94 (5) 10.16 (10) 9.64 (19)
Half Yearly Rebalancing 24.90 (2) 14.94 (10) 10.16 (20) 9.64 (37)
Quarterly Rebalancing 24.90 (4) 14.94 (20) 10.16 (40) 9.64 (75)
5% Tolerance per asset 24.90 (0) 14.94 (0) 10.16 (0) 9.64 (0)
10% Tolerance per asset 24.90 (0) 14.94 (0) 10.16 (0) 9.64 (0)

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

Performances as of Jun 30, 2024

Historical returns and stats of US Stocks ESG Portfolio, after implementing different rebalancing strategies.

US STOCKS ESG PORTFOLIO PERFORMANCES
Period: September 2005 - June 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
Yearly Rebalancing 9.64 (19) 17.12 0.56 -52.70 0.18
Half Yearly Rebalancing 9.64 (37) 17.12 0.56 -52.70 0.18
Quarterly Rebalancing 9.64 (75) 17.12 0.56 -52.70 0.18
5% Tolerance per asset 9.64 (0) 17.12 0.56 -52.70 0.18
10% Tolerance per asset 9.64 (0) 17.12 0.56 -52.70 0.18
(*) Since Sep 2005 (~19 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Jun 30, 2024

Historical Drawdowns of US Stocks ESG Portfolio, after implementing different rebalancing strategies.

US STOCKS ESG PORTFOLIO DRAWDOWNS
Period: September 2005 - June 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-52.70
Jun 2007 - Feb 2011
-52.70
Jun 2007 - Feb 2011
-52.70
Jun 2007 - Feb 2011
-52.70
Jun 2007 - Feb 2011
-52.70
Jun 2007 - Feb 2011
-27.79
Jan 2022 - Jan 2024
-27.79
Jan 2022 - Jan 2024
-27.79
Jan 2022 - Jan 2024
-27.79
Jan 2022 - Jan 2024
-27.79
Jan 2022 - Jan 2024
-23.59
May 2011 - Jan 2013
-23.59
May 2011 - Jan 2013
-23.59
May 2011 - Jan 2013
-23.59
May 2011 - Jan 2013
-23.59
May 2011 - Jan 2013
-19.14
Feb 2020 - Jul 2020
-19.14
Feb 2020 - Jul 2020
-19.14
Feb 2020 - Jul 2020
-19.14
Feb 2020 - Jul 2020
-19.14
Feb 2020 - Jul 2020
-17.80
Feb 2018 - Jul 2019
-17.80
Feb 2018 - Jul 2019
-17.80
Feb 2018 - Jul 2019
-17.80
Feb 2018 - Jul 2019
-17.80
Feb 2018 - Jul 2019
5 Worst Drawdowns - Average
-28.20 -28.20 -28.20 -28.20 -28.20
10 Worst Drawdowns - Average
-17.48 -17.48 -17.48 -17.48 -17.48

For a deeper insight, please refer to the US Stocks ESG Portfolio: ETF allocation and returns page.