Developed World Stocks To GBP Hedged Portfolio: Rebalancing Strategy

Data Source: from January 1972 to June 2026
Consolidated Returns as of 30 June 2026

Managing the Developed World Stocks To GBP Hedged Portfolio with a yearly rebalancing, you would have obtained a 8.48% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 8.48%.

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 Developed World Stocks To GBP Hedged Portfolio guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 1972.

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.

DEVELOPED WORLD STOCKS TO GBP HEDGED PORTFOLIO RETURNS

Period: January 1972 - 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 (~55Y)
No Rebalancing	22.52	(0)	11.54	(0)	12.45	(0)	8.48	(0)	10.85	(0)
Yearly Rebalancing	22.52	(1)	11.54	(5)	12.45	(10)	8.48	(30)	10.85	(55)
Half Yearly Rebalancing	22.52	(2)	11.54	(10)	12.45	(20)	8.48	(60)	10.85	(109)
Quarterly Rebalancing	22.52	(4)	11.54	(20)	12.45	(40)	8.48	(120)	10.85	(218)
5% Tolerance per asset	22.52	(0)	11.54	(0)	12.45	(0)	8.48	(0)	10.85	(0)
10% Tolerance per asset	22.52	(0)	11.54	(0)	12.45	(0)	8.48	(0)	10.85	(0)

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

Performances as of Jun 30, 2026

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

DEVELOPED WORLD STOCKS TO GBP HEDGED PORTFOLIO PERFORMANCES

Period: January 1972 - June 2026

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			Standard Deviation		Max Drawdown (%)
Rebalancing Strategy	Return %		Std Dev(%)	Ret. / Std Dev	MaxDD(%)	Ret. / MaxDD
No Rebalancing	10.85	(0)	14.28	0.76	-52.78	0.21
Yearly Rebalancing	10.85	(55)	14.28	0.76	-52.78	0.21
Half Yearly Rebalancing	10.85	(109)	14.28	0.76	-52.78	0.21
Quarterly Rebalancing	10.85	(218)	14.28	0.76	-52.78	0.21
5% Tolerance per asset	10.85	(0)	14.28	0.76	-52.78	0.21
10% Tolerance per asset	10.85	(0)	14.28	0.76	-52.78	0.21

(*) Since Jan 1972 (~55 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Jun 30, 2026

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

DEVELOPED WORLD STOCKS TO GBP HEDGED PORTFOLIO DRAWDOWNS

Period: January 1972 - June 2026

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Rebalancing				Tolerance per asset
No Rebalancing	Yearly	Half Yearly	Quarterly	5%	10%
-52.78 Nov 2007 - Apr 2013	-52.78 Nov 2007 - Apr 2013	-52.78 Nov 2007 - Apr 2013	-52.78 Nov 2007 - Apr 2013	-52.78 Nov 2007 - Apr 2013	-52.78 Nov 2007 - Apr 2013
-45.74 Apr 2000 - Sep 2005	-45.74 Apr 2000 - Sep 2005	-45.74 Apr 2000 - Sep 2005	-45.74 Apr 2000 - Sep 2005	-45.74 Apr 2000 - Sep 2005	-45.74 Apr 2000 - Sep 2005
-29.81 Nov 1973 - May 1975	-29.81 Nov 1973 - May 1975	-29.81 Nov 1973 - May 1975	-29.81 Nov 1973 - May 1975	-29.81 Nov 1973 - May 1975	-29.81 Nov 1973 - May 1975
-22.55 Dec 1980 - Jan 1983	-22.55 Dec 1980 - Jan 1983	-22.55 Dec 1980 - Jan 1983	-22.55 Dec 1980 - Jan 1983	-22.55 Dec 1980 - Jan 1983	-22.55 Dec 1980 - Jan 1983
-21.51 Jan 2022 - Dec 2023	-21.51 Jan 2022 - Dec 2023	-21.51 Jan 2022 - Dec 2023	-21.51 Jan 2022 - Dec 2023	-21.51 Jan 2022 - Dec 2023	-21.51 Jan 2022 - Dec 2023
5 Worst Drawdowns - Average
-34.48	-34.48	-34.48	-34.48	-34.48	-34.48
10 Worst Drawdowns - Average
-25.96	-25.96	-25.96	-25.96	-25.96	-25.96

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