Developed World Stocks To EUR Hedged Portfolio: ETF allocation and returns

Data Source: from January 1979 to April 2024 (~45 years)
Consolidated Returns as of 30 April 2024
Currency: EUR

The Developed World Stocks To EUR Hedged Portfolio is a Very High Risk portfolio and can be implemented with 1 ETF.

It's exposed for 100% on the Stock Market.

In the last 30 Years, the Developed World Stocks To EUR Hedged Portfolio obtained a 7.20% compound annual return, with a 14.57% standard deviation.

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Asset Allocation and ETFs

The Developed World Stocks To EUR Hedged Portfolio has the following asset allocation:

100% Stocks
0% Fixed Income
0% Commodities

The Developed World Stocks To EUR Hedged Portfolio can be implemented with the following ETFs:

Weight
(%)
Investment Themes (Orig.Currency) ETF
Ticker
ETF
Currency
ETF Name
100.00 Stocks (Mix)
IBCH.DE
EUR
Hedged
iShares Core MSCI World EUR Hedged

Most of Lazy Portfolios are made of common components (asset classes), very simple and well defined. For a more complete view, find out the most common ETFs you can use to build your portfolio.

Portfolio and ETF Returns as of Apr 30, 2024

The Developed World Stocks To EUR Hedged Portfolio guaranteed the following returns.

Returns are calculated in EUR, assuming:
  • no fees or capital gain taxes.
  • 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.
  • the actual Euro Inflation rates.
DEVELOPED WORLD STOCKS TO EUR HEDGED PORTFOLIO
Consolidated returns as of 30 April 2024
Swipe left to see all data
  Chg (%) Return (%) Return (%) as of Apr 30, 2024
  1 Day Time ET(*) May 2024 1M 6M 1Y 5Y 10Y 30Y MAX
(~45Y)
Developed World Stocks To EUR Hedged Portfolio n.a. n.a. -2.73 20.22 19.00 9.17 8.31 7.20 8.77
Euro Inflation Adjusted return -3.29 18.78 16.23 5.27 5.87 5.02 6.17
Returns over 1 year are annualized | Available data source: since Jan 1979
(*) Eastern Time (ET - America/New York)
Euro Inflation is updated to Apr 2024. Current inflation (annualized) is 1Y: 2.38% , 5Y: 3.70% , 10Y: 2.30% , 30Y: 2.07%

Capital Growth as of Apr 30, 2024

An investment of 1€, since May 1994, now would be worth 8.04€, with a total return of 704.34% (7.20% annualized).

The Inflation Adjusted Capital now would be 4.35€, with a net total return of 335.23% (5.02% annualized).
An investment of 1€, since January 1979, now would be worth 45.20€, with a total return of 4419.94% (8.77% annualized).

The Inflation Adjusted Capital now would be 15.06€, with a net total return of 1406.29% (6.17% annualized).

Portfolio Metrics as of Apr 30, 2024

Metrics of Developed World Stocks To EUR Hedged Portfolio, updated as of 30 April 2024.

Metrics are calculated based on monthly returns, assuming:
  • no fees or capital gain taxes.
  • 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.
  • the actual Euro Inflation rates.
DEVELOPED WORLD STOCKS TO EUR HEDGED PORTFOLIO
Advanced Metrics
Data Source: 1 January 1979 - 30 April 2024 (~45 years)
Swipe left to see all data
Metrics as of Apr 30, 2024
1M 3M 6M 1Y 3Y 5Y 10Y 20Y 30Y MAX
(~45Y)
Investment Return (%) -2.73 4.46 20.22 19.00 5.50 9.17 8.31 7.66 7.20 8.77
Infl. Adjusted Return (%) details -3.29 2.43 18.78 16.23 -0.06 5.27 5.87 5.44 5.02 6.17
Euro Inflation (%) 0.58 1.98 1.21 2.38 5.57 3.70 2.30 2.11 2.07 2.45
Returns / Inflation rates over 1 year are annualized.
DRAWDOWN
Inflation Adjusted:
Inflation Adjusted:
1Y 3Y 5Y 10Y 20Y 30Y MAX
Deepest Drawdown Depth (%) -8.51 -22.53 -22.53 -22.53 -53.19 -53.19 -53.19
Start to Recovery (# months) details 5 25 25 25 65 65 65
Start (yyyy mm) 2023 08 2022 01 2022 01 2022 01 2007 11 2007 11 2007 11
Start to Bottom (# months) 3 9 9 9 16 16 16
Bottom (yyyy mm) 2023 10 2022 09 2022 09 2022 09 2009 02 2009 02 2009 02
Bottom to End (# months) 2 16 16 16 49 49 49
End (yyyy mm) 2023 12 2024 01 2024 01 2024 01 2013 03 2013 03 2013 03
Longest Drawdown Depth (%)
same as
deepest

same as
deepest

same as
deepest

same as
deepest

same as
deepest
-47.09 -47.09
Start to Recovery (# months) details 72 72
Start (yyyy mm) 2023 08 2022 01 2022 01 2022 01 2007 11 2000 04 2000 04
Start to Bottom (# months) 3 9 9 9 16 30 30
Bottom (yyyy mm) 2023 10 2022 09 2022 09 2022 09 2009 02 2002 09 2002 09
Bottom to End (# months) 2 16 16 16 49 42 42
End (yyyy mm) 2023 12 2024 01 2024 01 2024 01 2013 03 2006 03 2006 03
Longest negative period (# months) details 6 30 30 35 68 142 142
Period Start (yyyy mm) 2023 05 2021 05 2021 05 2017 05 2006 02 1997 05 1997 05
Period End (yyyy mm) 2023 10 2023 10 2023 10 2020 03 2011 09 2009 02 2009 02
Annualized Return (%) -2.02 -0.93 -0.93 -0.22 -0.61 -0.07 -0.07
Deepest Drawdown Depth (%) -9.38 -28.30 -28.30 -28.30 -54.15 -54.15 -54.15
Start to Recovery (# months) details 5 28* 28* 28* 72 72 72
Start (yyyy mm) 2023 08 2022 01 2022 01 2022 01 2007 11 2007 11 2007 11
Start to Bottom (# months) 3 9 9 9 16 16 16
Bottom (yyyy mm) 2023 10 2022 09 2022 09 2022 09 2009 02 2009 02 2009 02
Bottom to End (# months) 2 19 19 19 56 56 56
End (yyyy mm) 2023 12 - - - 2013 10 2013 10 2013 10
Longest Drawdown Depth (%)
same as
deepest

same as
deepest

same as
deepest

same as
deepest

same as
deepest
-50.06 -50.06
Start to Recovery (# months) details 88 88
Start (yyyy mm) 2023 08 2022 01 2022 01 2022 01 2007 11 2000 01 2000 01
Start to Bottom (# months) 3 9 9 9 16 33 33
Bottom (yyyy mm) 2023 10 2022 09 2022 09 2022 09 2009 02 2002 09 2002 09
Bottom to End (# months) 2 19 19 19 56 55 55
End (yyyy mm) 2023 12 - - - 2013 10 2007 04 2007 04
Longest negative period (# months) details 6 36* 38 56 87 166 166
Period Start (yyyy mm) 2023 05 2021 05 2019 08 2018 02 2005 03 1995 05 1995 05
Period End (yyyy mm) 2023 10 2024 04 2022 09 2022 09 2012 05 2009 02 2009 02
Annualized Return (%) -4.25 -0.06 -0.13 -0.30 -0.06 -0.12 -0.12
Drawdowns / Negative periods marked with * are in progress
RISK INDICATORS
1Y 3Y 5Y 10Y 20Y 30Y MAX
Standard Deviation (%) 12.72 14.56 15.83 13.54 14.62 14.57 14.67
Sharpe Ratio 1.08 0.20 0.46 0.52 0.43 0.34 0.33
Sortino Ratio 1.50 0.26 0.61 0.69 0.56 0.44 0.43
Ulcer Index 2.96 10.46 8.98 7.07 13.56 16.12 14.01
Ratio: Return / Standard Deviation 1.49 0.38 0.58 0.61 0.52 0.49 0.60
Ratio: Return / Deepest Drawdown 2.23 0.24 0.41 0.37 0.14 0.14 0.16
% Positive Months details 58% 55% 60% 64% 62% 62% 61%
Positive Months 7 20 36 77 151 224 335
Negative Months 5 16 24 43 89 136 209
LONG TERM RETURNS
Inflation Adjusted:
Inflation Adjusted:
1Y 3Y 5Y 10Y 20Y 30Y MAX
Best 10 Years Return (%) - Annualized 8.31 13.38 13.38 16.41
Worst 10 Years Return (%) - Annualized 4.60 -3.05 -3.05
Best 10 Years Return (%) - Annualized 5.87 11.97 11.97 13.69
Worst 10 Years Return (%) - Annualized 3.12 -5.05 -5.05
ROLLING PERIODS
Inflation Adjusted:
Inflation Adjusted:
1Y 3Y 5Y 10Y 20Y 30Y MAX
Over the latest 30Y
Best Rolling Return (%) - Annualized 55.16 23.80 20.63 13.38 8.53 7.20
Worst Rolling Return (%) - Annualized -46.17 -18.36 -6.40 -3.05 3.24
% Positive Periods 73% 80% 79% 92% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 68.22 22.80 13.71 7.42 4.43 6.31
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - - 1.19 4.86
WR calculated based on initial capital | Monthly withdrawals adjusted for inflation | Credits: BestRetirementPortfolio.com
Best Rolling Return (%) - Annualized 53.84 21.37 18.60 11.97 6.33 5.02
Worst Rolling Return (%) - Annualized -46.79 -20.24 -8.23 -5.05 1.56
% Positive Periods 72% 76% 73% 89% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 68.22 22.80 13.71 7.42 4.43 6.31
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - - 1.19 4.86
WR calculated based on initial capital | Monthly withdrawals adjusted for inflation | Credits: BestRetirementPortfolio.com
Over all the available data source (Jan 1979 - Apr 2024)
Best Rolling Return (%) - Annualized 62.81 40.69 29.97 16.41 13.97 9.85
Worst Rolling Return (%) - Annualized -46.17 -18.36 -6.40 -3.05 3.24 6.65
% Positive Periods 75% 86% 87% 95% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 68.22 22.80 13.71 7.42 4.43 5.44
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - - 1.19 4.02
WR calculated based on initial capital | Monthly withdrawals adjusted for inflation | Credits: BestRetirementPortfolio.com
Best Rolling Return (%) - Annualized 63.36 39.65 28.07 13.69 11.08 7.64
Worst Rolling Return (%) - Annualized -46.79 -20.24 -8.23 -5.05 1.45 4.48
% Positive Periods 71% 76% 82% 93% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 68.22 22.80 13.71 7.42 4.43 5.44
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - - 1.19 4.02
WR calculated based on initial capital | Monthly withdrawals adjusted for inflation | Credits: BestRetirementPortfolio.com
Terms and Definitions
  • Annualized Portfolio Return: it's the annualized geometric mean return of the portfolio.
  • Deepest/Longest Drawdown: a drawdown refers to the decline in value from a relative peak value to a relative trough. The deepest (or maximum) drawdown is the maximum observed loss from a peak to a trough of a portfolio before a new peak is attained. The longest drawdown is the period observed from a peak to the subsequent peak with the greatest duration.
  • Longest negative period: it's the maximum period for which an overall negative return has been observed.
  • Standard Deviation: it's a measure of the dispersion of returns around the mean.
  • Sharpe Ratio: it's a measure of risk-adjusted performance of the portfolio. It's calculated by dividing the excess return of the portfolio over the risk-free rate by the portfolio standard deviation. The risk-free rate here considered is the 1-3 Mth T-Bill return.
  • Sortino Ratio: another measure of risk-adjusted performance of the portfolio. It's a modification of the Sharpe Ratio (same formula but the denominator is the portfolio downside standard deviation).
  • Ulcer Index: it's a measure of downside risk that quantifies the depth and duration of drawdowns in an investment portfolio.
  • Best/Worst 10Y returns: the best and the worst 10-year return over a time frame.
  • Rolling Returns: N-year returns over a time frame, calculated over all the available data source (best, worst, % of positive returns). Each rolling period, longer than the longest negative period, yielded a non-negative minimum return.
  • Safe Withdrawal Rate (SWR): it's the percentage of the initial portfolio balance that can be withdrawn at the beginning of each month with inflation adjustment, without the portfolio running out of money in any case (money amount withdrawal).
    For instance: Your initial invested capital is 100.000$; withdrawal rate (annualized) is 4%. This means that, in the first month, you will withdraw 100.000 * 4% * 1/12 = 333.33$. The second month, you’ll withdraw 333.33$ plus the inflation monthly rate. You’ll continue adjusting your withdraw monthly for inflation.
  • Perpetual Withdrawal Rate (PWR): it's the percentage of the initial portfolio balance that can be withdrawn at the beginning of each month with inflation adjustment, preserving the original invested capital, adjusted for inflation too.

Drawdowns

A drawdown refers to the decline in value from a relative peak value to a relative trough. A maximum drawdown is the maximum observed loss from a peak to a trough of a portfolio before a new peak is attained.

DEVELOPED WORLD STOCKS TO EUR HEDGED PORTFOLIO
Drawdown periods
Drawdown periods - Inflation Adjusted
Data Source: 1 May 1994 - 30 April 2024 (30 Years)
Data Source: 1 January 1979 - 30 April 2024 (~45 years)
Inflation Adjusted:
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Rolling Returns

( more details)

A rolling return is a measure of investment performance that calculates the return of an investment over a set period of time, with the starting date rolling forward. This approach can provide a more accurate representation of the investment's historical performance and helps investors to evaluate the investment's consistency over time.

DEVELOPED WORLD STOCKS TO EUR HEDGED PORTFOLIO
Annualized Rolling Returns
Annualized Rolling Returns - Inflation Adjusted
Data Source: 1 May 1994 - 30 April 2024 (30 Years)
Data Source: 1 January 1979 - 30 April 2024 (~45 years)
Inflation Adjusted:

If you need a deeper detail about rolling returns, please refer to the Developed World Stocks To EUR Hedged Portfolio: Rolling Returns page.

Seasonality

In which months is it better to invest in Developed World Stocks To EUR Hedged Portfolio?

Both the Average Return and the Gain Frequency (Win %) are useful to get an idea of what happened in the past.
For further information about the seasonality, check the Asset Class Seasonality page.
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Monthly Returns

This section provides a visual/tabular representation of the performance variability in the Developed World Stocks To EUR Hedged Portfolio over time. It illustrates the distribution of monthly returns, showcasing the range and frequency of positive and negative returns.

DEVELOPED WORLD STOCKS TO EUR HEDGED PORTFOLIO
Monthly Returns Distribution
Data Source: 1 May 1994 - 30 April 2024 (30 Years)
Data Source: 1 January 1979 - 30 April 2024 (~45 years)
224 Positive Months (62%) - 136 Negative Months (38%)
335 Positive Months (62%) - 209 Negative Months (38%)
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(Scroll down to see all data)
Investment Returns, up to April 2011, have been derived using the historical series of equivalent ETFs / Assets, instead of the actual ETFs of the portfolio.
You can find additional information on extended Data Sources here.

Hedged returns are calculated taking into account the interest rate differentials of the countries. It is assumed that hedged instruments have an additional expense ratio of 0.25% (yearly).

In particular, the series derived from equivalent datasets are:
  • IBCH.DE - iShares Core MSCI World EUR Hedged (IBCH.DE), up to April 2011
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