Vanguard LifeStrategy Income Fund To EUR Portfolio: Rebalancing Strategy

Data Source: from July 1987 to May 2024
Consolidated Returns as of 31 May 2024

Managing the Vanguard LifeStrategy Income Fund To EUR Portfolio with a yearly rebalancing, you would have obtained a 4.72% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 4.68%.

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 Vanguard LifeStrategy Income Fund To EUR Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on July 1987.

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)
  • 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.
VANGUARD LIFESTRATEGY INCOME FUND TO EUR PORTFOLIO RETURNS
Period: July 1987 - 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
(~37Y)
Yearly Rebalancing 4.96 (1) 1.25 (5) 2.38 (10) 4.72 (30) 5.40 (37)
Half Yearly Rebalancing 4.90 (2) 1.19 (10) 2.38 (20) 4.62 (60) 5.32 (74)
Quarterly Rebalancing 4.87 (4) 1.23 (20) 2.43 (40) 4.68 (120) 5.39 (148)
5% Tolerance per asset 5.27 (0) 1.29 (1) 2.51 (3) 4.72 (10) 5.37 (11)
10% Tolerance per asset 5.18 (0) 1.63 (1) 2.72 (2) 4.75 (3) 5.38 (3)

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

Performances as of May 31, 2024

Historical returns and stats of Vanguard LifeStrategy Income Fund To EUR Portfolio, after implementing different rebalancing strategies.

VANGUARD LIFESTRATEGY INCOME FUND TO EUR PORTFOLIO PERFORMANCES
Period: July 1987 - 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 5.40 (37) 4.78 1.13 -15.38 0.35
Half Yearly Rebalancing 5.32 (74) 4.76 1.12 -15.36 0.35
Quarterly Rebalancing 5.39 (148) 4.77 1.13 -15.35 0.35
5% Tolerance per asset 5.37 (11) 4.76 1.13 -15.35 0.35
10% Tolerance per asset 5.38 (3) 4.70 1.14 -15.18 0.35
(*) Since Jul 1987 (~37 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of May 31, 2024

Historical Drawdowns of Vanguard LifeStrategy Income Fund To EUR Portfolio, after implementing different rebalancing strategies.

VANGUARD LIFESTRATEGY INCOME FUND TO EUR PORTFOLIO DRAWDOWNS
Period: July 1987 - May 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
Yearly Half Yearly Quarterly 5% 10%
-15.38
Jan 2022 - In progress
-15.36
Jan 2022 - In progress
-15.35
Jan 2022 - In progress
-15.35
Jan 2022 - In progress
-15.18
Jan 2022 - In progress
-7.75
Feb 1994 - Aug 1995
-8.20
Dec 2007 - Jul 2009
-8.41
Nov 2007 - Jul 2009
-7.70
Feb 1994 - Aug 1995
-7.44
Feb 1994 - Jul 1995
-7.73
Nov 2007 - Jul 2009
-7.77
Feb 1994 - Aug 1995
-7.78
Feb 1994 - Aug 1995
-7.44
Nov 2007 - Jul 2009
-6.86
Sep 1989 - Feb 1991
-6.83
Sep 1989 - Feb 1991
-7.30
Sep 1989 - Feb 1991
-7.20
Sep 1989 - Feb 1991
-6.86
Sep 1989 - Feb 1991
-6.37
Dec 2007 - Jun 2009
-5.72
Aug 1987 - Feb 1988
-5.72
Aug 1987 - Feb 1988
-5.04
Aug 1987 - Jan 1988
-5.72
Aug 1987 - Feb 1988
-5.72
Aug 1987 - Feb 1988
5 Worst Drawdowns - Average
-8.68 -8.87 -8.76 -8.62 -8.31
10 Worst Drawdowns - Average
-6.14 -6.21 -6.14 -6.12 -6.03

For a deeper insight, please refer to the Vanguard LifeStrategy Income Fund To EUR Portfolio: ETF allocation and returns page.