US Stocks To EUR Hedged Portfolio: Rebalancing Strategy

Data Source: from January 1950 to April 2024
Consolidated Returns as of 30 April 2024

Managing the US Stocks To EUR Hedged Portfolio with a yearly rebalancing, you would have obtained a 9.54% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 9.54%.

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 US Stocks To EUR Hedged Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1950.

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.
US STOCKS TO EUR HEDGED PORTFOLIO RETURNS
Period: January 1950 - 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
(~74Y)
Yearly Rebalancing 22.02 (1) 10.58 (5) 10.13 (10) 9.54 (30) 10.91 (75)
Half Yearly Rebalancing 22.02 (2) 10.58 (10) 10.13 (20) 9.54 (60) 10.91 (149)
Quarterly Rebalancing 22.02 (4) 10.58 (20) 10.13 (40) 9.54 (120) 10.91 (298)
5% Tolerance per asset 22.02 (0) 10.58 (0) 10.13 (0) 9.54 (0) 10.91 (0)
10% Tolerance per asset 22.02 (0) 10.58 (0) 10.13 (0) 9.54 (0) 10.91 (0)

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

Performances as of Apr 30, 2024

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

US STOCKS TO EUR HEDGED PORTFOLIO PERFORMANCES
Period: January 1950 - 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 10.91 (75) 14.77 0.74 -49.95 0.22
Half Yearly Rebalancing 10.91 (149) 14.77 0.74 -49.95 0.22
Quarterly Rebalancing 10.91 (298) 14.77 0.74 -49.95 0.22
5% Tolerance per asset 10.91 (0) 14.77 0.74 -49.95 0.22
10% Tolerance per asset 10.91 (0) 14.77 0.74 -49.95 0.22
(*) Since Jan 1950 (~74 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Apr 30, 2024

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

US STOCKS TO EUR HEDGED PORTFOLIO DRAWDOWNS
Period: January 1950 - April 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-49.95
Nov 2007 - Apr 2011
-49.95
Nov 2007 - Apr 2011
-49.95
Nov 2007 - Apr 2011
-49.95
Nov 2007 - Apr 2011
-49.95
Nov 2007 - Apr 2011
-47.02
Jan 1973 - Jul 1978
-47.02
Jan 1973 - Jul 1978
-47.02
Jan 1973 - Jul 1978
-47.02
Jan 1973 - Jul 1978
-47.02
Jan 1973 - Jul 1978
-43.94
Apr 2000 - Apr 2006
-43.94
Apr 2000 - Apr 2006
-43.94
Apr 2000 - Apr 2006
-43.94
Apr 2000 - Apr 2006
-43.94
Apr 2000 - Apr 2006
-31.66
Dec 1968 - Apr 1971
-31.66
Dec 1968 - Apr 1971
-31.66
Dec 1968 - Apr 1971
-31.66
Dec 1968 - Apr 1971
-31.66
Dec 1968 - Apr 1971
-29.77
Sep 1987 - Jul 1989
-29.77
Sep 1987 - Jul 1989
-29.77
Sep 1987 - Jul 1989
-29.77
Sep 1987 - Jul 1989
-29.77
Sep 1987 - Jul 1989
5 Worst Drawdowns - Average
-40.47 -40.47 -40.47 -40.47 -40.47
10 Worst Drawdowns - Average
-31.28 -31.28 -31.28 -31.28 -31.28

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