Consolidated Returns as of 30 June 2024
Managing the Developed World 20/80 To EUR Portfolio with a yearly rebalancing, you would have obtained a 4.74% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 4.70%.
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.
At fixed time intervals:
- Yearly: Jan 1st
- Half Yearly: Jan 1st, Jul 1st
- Quarterly: Jan 1st, Apr 1st, Jul 1st, Oct 1st
Portfolio Returns as of Jun 30, 2024
Implementing different rebalancing strategies, the Developed World 20/80 To EUR Portfolio guaranteed the following returns.
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)
| Return (%) and number of rebalances as of Jun 30, 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~53Y) |
|||||
| Yearly Rebalancing | 5.18 | (1) | 0.89 | (5) | 3.41 | (10) | 4.74 | (30) | 5.80 | (53) |
| Half Yearly Rebalancing | 5.09 | (2) | 0.86 | (10) | 3.42 | (20) | 4.67 | (60) | 5.76 | (105) |
| Quarterly Rebalancing | 4.98 | (4) | 0.89 | (20) | 3.45 | (40) | 4.70 | (120) | 5.78 | (210) |
| 5% Tolerance per asset | 5.20 | (1) | 1.03 | (2) | 3.52 | (3) | 4.72 | (8) | 5.75 | (9) |
| 10% Tolerance per asset | 5.82 | (0) | 1.35 | (1) | 3.62 | (1) | 4.68 | (2) | 5.72 | (2) |
In order to have complete information about the portfolio, please refer to the Developed World 20/80 To EUR Portfolio: ETF allocation and returns page.
Performances as of Jun 30, 2024
Historical returns and stats of Developed World 20/80 To EUR Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| Yearly Rebalancing | 5.80 | (53) | 6.21 | 0.93 | -18.79 | 0.31 |
| Half Yearly Rebalancing | 5.76 | (105) | 6.19 | 0.93 | -18.79 | 0.31 |
| Quarterly Rebalancing | 5.78 | (210) | 6.18 | 0.93 | -18.79 | 0.31 |
| 5% Tolerance per asset | 5.75 | (9) | 6.21 | 0.93 | -18.76 | 0.31 |
| 10% Tolerance per asset | 5.72 | (2) | 6.33 | 0.90 | -18.94 | 0.30 |
Drawdowns as of Jun 30, 2024
Historical Drawdowns of Developed World 20/80 To EUR Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
|||
|---|---|---|---|---|
| Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-18.79
Feb 1994 - May 1996
|
-18.79
Feb 1994 - May 1996
|
-18.79
Feb 1994 - May 1996
|
-18.76
Feb 1994 - May 1996
|
-18.94
Feb 1994 - May 1996
|
|
-14.34
Dec 2021 - In progress
|
-14.39
Dec 2021 - In progress
|
-14.44
Dec 2021 - In progress
|
-13.96
Dec 2021 - In progress
|
-14.47
Dec 2021 - In progress
|
|
-13.63
Sep 1972 - Jul 1975
|
-13.77
Sep 1972 - Jul 1975
|
-13.65
Sep 1972 - Jul 1975
|
-13.90
Sep 1972 - Jul 1975
|
-13.90
Sep 1972 - Jul 1975
|
|
-10.91
Nov 2000 - Jun 2005
|
-11.50
Nov 2000 - Aug 2005
|
-11.02
Nov 2000 - Jun 2005
|
-11.05
Nov 2000 - Sep 2005
|
-10.48
Mar 2006 - Sep 2009
|
|
-10.31
Mar 2006 - Aug 2009
|
-10.28
Mar 2006 - Aug 2009
|
-10.25
Mar 2006 - Sep 2009
|
-9.86
Mar 2006 - Aug 2009
|
-10.41
Sep 1989 - Mar 1991
|
| 5 Worst Drawdowns - Average | ||||
| -13.60 | -13.75 | -13.63 | -13.50 | -13.64 |
| 10 Worst Drawdowns - Average | ||||
| -10.39 | -10.44 | -10.36 | -10.35 | -10.74 |
For a deeper insight, please refer to the Developed World 20/80 To EUR Portfolio: ETF allocation and returns page.
