US Stocks To GBP Hedged Portfolio: Rebalancing Strategy

Data Source: from January 1800 to June 2026
Consolidated Returns as of 30 June 2026

Managing the US Stocks To GBP Hedged Portfolio with a yearly rebalancing, you would have obtained a 10.29% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 10.29%.

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, 2026

Implementing different rebalancing strategies, the US Stocks To GBP Hedged Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1800.

Portfolio returns are calculated in GBP, 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 GBP HEDGED PORTFOLIO RETURNS

Period: January 1800 - June 2026

Annualized Returns

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	Return (%) and number of rebalances as of Jun 30, 2026
Rebalancing Strategy	1Y		5Y		10Y		30Y		MAX (~227Y)
No Rebalancing	21.20	(0)	11.35	(0)	13.55	(0)	10.29	(0)	8.47	(0)
Yearly Rebalancing	21.20	(1)	11.35	(5)	13.55	(10)	10.29	(30)	8.47	(227)
Half Yearly Rebalancing	21.20	(2)	11.35	(10)	13.55	(20)	10.29	(60)	8.47	(453)
Quarterly Rebalancing	21.20	(4)	11.35	(20)	13.55	(40)	10.29	(120)	8.47	(906)
5% Tolerance per asset	21.20	(0)	11.35	(0)	13.55	(0)	10.29	(0)	8.47	(0)
10% Tolerance per asset	21.20	(0)	11.35	(0)	13.55	(0)	10.29	(0)	8.47	(0)

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

Performances as of Jun 30, 2026

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

US STOCKS TO GBP HEDGED PORTFOLIO PERFORMANCES

Period: January 1800 - June 2026

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			Standard Deviation		Max Drawdown (%)
Rebalancing Strategy	Return %		Std Dev(%)	Ret. / Std Dev	MaxDD(%)	Ret. / MaxDD
No Rebalancing	8.47	(0)	14.96	0.57	-84.58	0.10
Yearly Rebalancing	8.47	(227)	14.96	0.57	-84.58	0.10
Half Yearly Rebalancing	8.47	(453)	14.96	0.57	-84.58	0.10
Quarterly Rebalancing	8.47	(906)	14.96	0.57	-84.58	0.10
5% Tolerance per asset	8.47	(0)	14.96	0.57	-84.58	0.10
10% Tolerance per asset	8.47	(0)	14.96	0.57	-84.58	0.10

(*) Since Jan 1800 (~227 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Jun 30, 2026

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

US STOCKS TO GBP HEDGED PORTFOLIO DRAWDOWNS

Period: January 1800 - June 2026

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Rebalancing				Tolerance per asset
No Rebalancing	Yearly	Half Yearly	Quarterly	5%	10%
-84.58 Sep 1929 - Feb 1945	-84.58 Sep 1929 - Feb 1945	-84.58 Sep 1929 - Feb 1945	-84.58 Sep 1929 - Feb 1945	-84.58 Sep 1929 - Feb 1945	-84.58 Sep 1929 - Feb 1945
-49.51 Nov 2007 - Apr 2011	-49.51 Nov 2007 - Apr 2011	-49.51 Nov 2007 - Apr 2011	-49.51 Nov 2007 - Apr 2011	-49.51 Nov 2007 - Apr 2011	-49.51 Nov 2007 - Apr 2011
-45.01 Jan 1973 - Mar 1976	-45.01 Jan 1973 - Mar 1976	-45.01 Jan 1973 - Mar 1976	-45.01 Jan 1973 - Mar 1976	-45.01 Jan 1973 - Mar 1976	-45.01 Jan 1973 - Mar 1976
-42.68 Sep 2000 - Jul 2005	-42.68 Sep 2000 - Jul 2005	-42.68 Sep 2000 - Jul 2005	-42.68 Sep 2000 - Jul 2005	-42.68 Sep 2000 - Jul 2005	-42.68 Sep 2000 - Jul 2005
-35.80 Apr 1876 - Apr 1879	-35.80 Apr 1876 - Apr 1879	-35.80 Apr 1876 - Apr 1879	-35.80 Apr 1876 - Apr 1879	-35.80 Apr 1876 - Apr 1879	-35.80 Apr 1876 - Apr 1879
5 Worst Drawdowns - Average
-51.51	-51.51	-51.51	-51.51	-51.51	-51.51
10 Worst Drawdowns - Average
-41.31	-41.31	-41.31	-41.31	-41.31	-41.31

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