Data Source: from January 1995 to December 2021
Last Update: 31 December 2021
The All Country World 60/40 Portfolio is exposed for 60% on the Stock Market.
It's a High Risk portfolio and it can be replicated with 4 ETFs.
In the last 10 years, the portfolio obtained a 8.74% compound annual return, with a 8.45% standard deviation.
In the last 25 years, a 6.69% compound annual return, with a 10.01% standard deviation.
Asset Allocation and ETFs
The All Country World 60/40 Portfolio has the following asset allocation:
The All Country World 60/40 Portfolio can be replicated with the following ETFs:
| Weight | Ticker | ETF Name | Investment Themes | |
|---|---|---|---|---|
| 60.00 % | VT | Vanguard Total World Stock | Equity, Global, Large Cap | |
| 20.00 % | BND | Vanguard Total Bond Market | Bond, U.S., All-Term | |
| 14.00 % | BNDX | Vanguard Total International Bond | Bond, Developed Markets, All-Term | |
| 6.00 % | EMB | iShares JP Morgan USD Em Mkts Bd | Bond, Emerging Markets, All-Term |
Portfolio and ETF Returns
The All Country World 60/40 Portfolio guaranteed the following returns.
| 1M | 3M | 6M | 1Y | 3Y(*) | 5Y(*) | 10Y(*) | 20Y(*) | 25Y(*) | |
|---|---|---|---|---|---|---|---|---|---|
| All Country World 60/40 Portfolio | +2.39 | +3.97 | +3.01 | +10.14 | +14.09 | +10.23 | +8.74 | +6.88 | +6.69 |
| --- Inflation Adjusted return | +1.91 | +1.72 | -0.37 | +2.81 | +10.20 | +7.11 | +6.49 | +4.47 | +4.30 |
| Components | |||||||||
|
VT Vanguard Total World Stock |
+3.81 | +6.30 | +4.89 | +18.27 | +20.48 | +14.46 | +12.06 | +7.32 | +6.55 |
|
BND Vanguard Total Bond Market |
-0.31 | -0.04 | -0.08 | -1.86 | +4.78 | +3.54 | +2.75 | +4.09 | +4.73 |
|
BNDX Vanguard Total International Bond |
-0.74 | -0.14 | -0.17 | -2.28 | +3.32 | +3.03 | +3.80 | +4.96 | +5.22 |
|
EMB iShares JP Morgan USD Em Mkts Bd |
+2.16 | +0.40 | -0.82 | -2.24 | +5.98 | +4.41 | +4.59 | +7.91 | +9.09 |
- a rebalancing of the components at the beginning of each year (i.e. at every January 1st)
- the reinvestment of dividends
Inflation is updated to Dec 2021. Current inflation (annualized) is 1Y: 7.12% , 3Y: 3.53% , 5Y: 2.92% , 10Y: 2.12% , 20Y: 2.31% , 25Y: 2.29%
In 2021, the portfolio granted a 2.41% dividend yield. If you are interested in getting periodic income, please refer to the All Country World 60/40 Portfolio: Dividend Yield page.
Historical Returns
Historical returns and stats of All Country World 60/40 Portfolio. Total Returns and Inflation Adjusted Returns are both mentioned.
| Period | Return Dec 2021 update |
Return Inflation Adjusted |
Standard Deviation(*) |
Max Drawdown |
Months Pos - Neg |
|---|---|---|---|---|---|
|
1M
Dec 2021
|
+2.39%
|
+1.91%
|
0.00%
|
1 - 0
|
|
|
3M
|
+3.97%
|
+1.72%
|
-1.61%
Nov 2021 - Nov 2021
|
2 - 1
|
|
|
6M
|
+3.01%
|
-0.37%
|
-3.08%
Sep 2021 - Sep 2021
|
4 - 2
|
|
|
YTD
|
+10.14%
|
+2.81%
|
5.99%
|
-3.08%
Sep 2021 - Sep 2021
|
9 - 3
75% pos
|
|
1Y
|
+10.14%
|
+2.81%
|
5.99%
|
-3.08%
Sep 2021 - Sep 2021
|
9 - 3
75% pos
|
|
3Y
|
+14.09%
annualized
|
+10.20%
annualized
|
10.96%
|
-13.80%
Jan 2020 - Mar 2020
|
26 - 10
72% pos
|
|
5Y
|
+10.23%
annualized
|
+7.11%
annualized
|
9.48%
|
-13.80%
Jan 2020 - Mar 2020
|
44 - 16
73% pos
|
|
10Y
|
+8.74%
annualized
|
+6.49%
annualized
|
8.45%
|
-13.80%
Jan 2020 - Mar 2020
|
83 - 37
69% pos
|
|
20Y
|
+6.88%
annualized
|
+4.47%
annualized
|
9.87%
|
-36.70%
Nov 2007 - Feb 2009
|
158 - 82
66% pos
|
|
25Y
|
+6.69%
annualized
|
+4.30%
annualized
|
10.01%
|
-36.70%
Nov 2007 - Feb 2009
|
195 - 105
65% pos
|
|
MAX
01 Jan 1995
|
+7.22%
annualized
|
+4.77%
annualized
|
9.75%
|
-36.70%
Nov 2007 - Feb 2009
|
213 - 111
66% pos
|
Portfolio efficiency
Is the All Country World 60/40 Portfolio actually efficient, compared to other Lazy Portfolios?
Best Classic Portfolios, with High Risk, ordered by 25 Years annualized return.
25 Years Stats |
% Allocation |
||||||
|---|---|---|---|---|---|---|---|
| Portfolio | Return▾ | Drawdown | Stocks | Bonds | Comm. | ||
| Simple Path to Wealth JL Collins |
+8.96% | -38.54% | 75 | 25 | 0 | Compare | |
| Yale Endowment David Swensen |
+8.94% | -39.46% | 70 | 30 | 0 | Compare | |
| Talmud Portfolio Roger Gibson |
+8.80% | -40.18% | 66.67 | 33.33 | 0 | Compare | |
| Late Sixties and Beyond Burton Malkiel |
+8.63% | -41.80% | 71 | 29 | 0 | Compare | |
| Lazy Portfolio David Swensen |
+8.41% | -40.88% | 70 | 30 | 0 | Compare | |
Our overall ratings, assigned to the All Country World 60/40 Portfolio. The portfolio is classified as High Risk.
Less than 25%
25% - 49.99%
50% - 74.99%
At least 75%
| High Risk Portfolios |
All Portfolios |
||
|---|---|---|---|
| 25 Years Ann. Return (Inflation Adjusted) |
+6.69%
(+4.30%) |
Bad : 1.2 / 5
|
Average : 2.7 / 5
|
| Standard Deviation over 25 Years |
10.01% |
Average : 3 / 5
|
Good : 3.4 / 5
|
| Maximum Drawdown over 25 Years |
-36.70% |
Average : 2.3 / 5
|
Average : 2.7 / 5
|
| Easy to manage | 4 ETFs |
Good : 3.5 / 5
|
Good : 3.5 / 5
|
| Rating assigned considering all the High Risk Portfolios | Rating assigned considering all the Portfolios in the database |
Capital Growth
An investment of 1000$, since January 1997, now would be worth 5044.08$, with a total return of 404.41% (6.69% annualized).
The Inflation Adjusted Capital now would be 2864.16$, with a net total return of 186.42% (4.30% annualized).
Drawdowns
Worst drawdowns since January 1997 - Chart and Data
Drawdown period |
Recovery period |
Total |
||||
|---|---|---|---|---|---|---|
| Drawdown | Start | Bottom | #Months | End | #Months | #Months |
| -36.70% | Nov 2007 | Feb 2009 | 16 | Jan 2011 | 23 | 39 |
| -23.34% | Apr 2000 | Sep 2002 | 30 | Jan 2004 | 16 | 46 |
| -13.80% | Jan 2020 | Mar 2020 | 3 | Jul 2020 | 4 | 7 |
| -12.04% | May 2011 | Sep 2011 | 5 | Mar 2012 | 6 | 11 |
| -9.85% | May 1998 | Aug 1998 | 4 | Nov 1998 | 3 | 7 |
| -8.49% | Feb 2018 | Dec 2018 | 11 | Apr 2019 | 4 | 15 |
| -7.73% | Jun 2015 | Feb 2016 | 9 | Jul 2016 | 5 | 14 |
| -5.70% | Apr 2012 | May 2012 | 2 | Aug 2012 | 3 | 5 |
| -4.76% | Aug 1997 | Oct 1997 | 3 | Feb 1998 | 4 | 7 |
| -3.73% | May 2013 | Jun 2013 | 2 | Sep 2013 | 3 | 5 |
| -3.53% | Jan 2000 | Jan 2000 | 1 | Mar 2000 | 2 | 3 |
| -3.21% | May 2019 | May 2019 | 1 | Jun 2019 | 1 | 2 |
| -3.08% | Sep 2021 | Sep 2021 | 1 | Oct 2021 | 1 | 2 |
| -3.06% | Sep 2020 | Oct 2020 | 2 | Nov 2020 | 1 | 3 |
| -3.00% | May 1999 | May 1999 | 1 | Oct 1999 | 5 | 6 |
| -2.85% | May 2006 | Jun 2006 | 2 | Aug 2006 | 2 | 4 |
| -2.77% | Mar 2004 | Jul 2004 | 5 | Oct 2004 | 3 | 8 |
| -2.50% | Mar 2005 | Apr 2005 | 2 | Jul 2005 | 3 | 5 |
| -2.27% | Sep 2014 | Sep 2014 | 1 | Feb 2015 | 5 | 6 |
| -2.21% | Jan 2014 | Jan 2014 | 1 | Feb 2014 | 1 | 2 |
Rolling Returns ( more details)
All Country World 60/40 Portfolio: annualized rolling and average returns
| Return (*) | Negative Periods |
|||
|---|---|---|---|---|
| Rolling Period | Average | Best | Worst | |
| 1 Year |
+7.59% |
+39.85% Mar 2009 - Feb 2010 |
-32.06% Mar 2008 - Feb 2009 |
20.77% |
| 2 Years |
+6.90% |
+27.00% Mar 2009 - Feb 2011 |
-16.26% Mar 2007 - Feb 2009 |
15.61% |
| 3 Years |
+6.57% |
+18.31% Mar 2009 - Feb 2012 |
-8.15% Mar 2006 - Feb 2009 |
14.19% |
| 5 Years |
+6.19% |
+14.90% Mar 2009 - Feb 2014 |
-1.65% Mar 2004 - Feb 2009 |
1.51% |
| 7 Years |
+5.93% |
+10.36% Mar 2009 - Feb 2016 |
+0.97% Mar 2002 - Feb 2009 |
0.00% |
| 10 Years |
+6.07% |
+9.98% Mar 2009 - Feb 2019 |
+1.11% Mar 1999 - Feb 2009 |
0.00% |
| 15 Years |
+5.93% |
+7.82% Feb 2003 - Jan 2018 |
+4.49% Sep 2000 - Aug 2015 |
0.00% |
| 20 Years |
+5.93% |
+7.08% Mar 1995 - Feb 2015 |
+4.33% Apr 2000 - Mar 2020 |
0.00% |
* Annualized rolling and average returns over full calendar month periods
If you need a deeper detail about rolling returns, please refer to the All Country World 60/40 Portfolio: Rolling Returns page.
Seasonality
All Country World 60/40 Portfolio Seasonality: in which months is it better to invest?
In the table below, the average monthly return is represented.
Below each return, it's also mentioned the probability of obtaining a positive monthly result (Win %).
Both the Average Return and the Gain Frequency are useful to get an idea of what happened in the past.
| Monthly Average Return (%) and Gain Frequency | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Return (%) | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
| Average Win % |
0.02 52% |
0.28 70% |
0.70 67% |
1.82 78% |
0.15 63% |
0.35 59% |
0.91 67% |
-0.29 59% |
0.07 63% |
0.75 63% |
1.28 70% |
1.44 78% |
| Best Year |
5.4 2019 |
4.4 1998 |
5.5 2009 |
7.7 2009 |
6.9 2009 |
4.5 2019 |
7.0 2009 |
3.2 2020 |
5.8 2010 |
6.6 2011 |
7.8 2020 |
5.4 1999 |
| Worst Year |
-7.2 2009 |
-6.1 2009 |
-10.1 2020 |
-2.9 2000 |
-5.7 2010 |
-5.1 2008 |
-5.0 2002 |
-9.6 1998 |
-8.3 2008 |
-13.0 2008 |
-2.9 2000 |
-3.7 2018 |
For further information about the seasonality, check the Asset Class Seasonality page.
Monthly/Yearly Returns
All Country World 60/40 Portfolio monthly and yearly returns: how is the distribution of the returns recorded so far?
Yearly Return(%) |
Monthly Return(%) |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | Total | Infl.Adj | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
| 2021 |
+10.14 | +2.81 | -0.5 | 0.9 | 1.5 | 2.8 | 1.1 | 1.0 | 0.8 | 1.4 | -3.1 | 3.2 | -1.6 | 2.4 |
| 2020 |
+12.48 | +11.04 | -0.2 | -3.9 | -10.1 | 6.8 | 3.5 | 2.2 | 3.7 | 3.2 | -1.8 | -1.3 | 7.8 | 3.2 |
| 2019 |
+19.89 | +17.24 | 5.4 | 1.8 | 1.3 | 2.2 | -3.2 | 4.5 | 0.2 | -0.4 | 1.1 | 1.7 | 1.5 | 2.3 |
| 2018 |
-5.81 | -7.59 | 2.9 | -3.0 | -0.5 | -0.1 | 0.4 | -0.4 | 1.9 | 0.5 | 0.0 | -5.1 | 1.2 | -3.7 |
| 2017 |
+16.36 | +13.97 | 1.8 | 2.0 | 0.9 | 1.3 | 1.5 | 0.3 | 1.8 | 0.7 | 1.2 | 1.4 | 1.2 | 1.2 |
| 2016 |
+6.82 | +4.67 | -3.1 | -0.2 | 5.1 | 0.7 | 0.5 | 0.8 | 2.8 | 0.2 | 0.5 | -1.7 | -0.2 | 1.3 |
| 2015 |
-0.78 | -1.41 | -0.1 | 3.3 | -0.6 | 1.4 | 0.0 | -1.9 | 0.7 | -4.2 | -2.0 | 4.5 | -0.1 | -1.5 |
| 2014 |
+4.95 | +4.27 | -2.2 | 3.4 | 0.4 | 0.8 | 1.8 | 1.4 | -1.1 | 2.1 | -2.3 | 0.9 | 1.0 | -1.2 |
| 2013 |
+12.77 | +11.09 | 2.0 | 0.0 | 1.5 | 2.2 | -1.3 | -2.5 | 3.4 | -1.9 | 4.0 | 2.8 | 0.9 | 1.3 |
| 2012 |
+13.25 | +11.30 | 3.7 | 3.1 | 0.7 | -0.3 | -5.4 | 3.4 | 1.2 | 1.7 | 2.2 | -0.3 | 1.2 | 1.8 |
| 2011 |
-1.26 | -4.19 | 0.8 | 1.9 | 0.0 | 3.2 | -1.0 | -0.9 | -0.6 | -3.9 | -6.2 | 6.6 | -0.9 | 0.2 |
| 2010 |
+10.93 | +9.36 | -2.6 | 1.4 | 4.1 | 0.2 | -5.7 | -0.9 | 5.7 | -1.4 | 5.8 | 2.4 | -2.1 | 4.2 |
| 2009 |
+23.38 | +20.01 | -7.2 | -6.1 | 5.5 | 7.7 | 6.9 | -0.7 | 7.0 | 2.3 | 4.0 | -1.5 | 3.7 | 0.7 |
| 2008 |
-25.21 | -25.19 | -4.3 | 0.3 | -1.1 | 2.9 | 0.3 | -5.1 | -1.4 | -1.0 | -8.3 | -13.0 | -1.7 | 5.1 |
| 2007 |
+8.21 | +3.93 | 0.5 | 0.2 | 1.1 | 2.7 | 1.3 | -0.5 | -0.7 | 0.1 | 3.6 | 2.8 | -2.4 | -0.5 |
| 2006 |
+13.12 | +10.34 | 2.9 | 0.1 | 0.7 | 1.9 | -2.8 | -0.1 | 1.0 | 2.1 | 0.9 | 2.5 | 2.1 | 1.2 |
| 2005 |
+7.18 | +3.71 | -1.0 | 1.8 | -1.6 | -0.9 | 1.5 | 0.8 | 1.9 | 0.9 | 1.6 | -2.0 | 2.3 | 1.9 |
| 2004 |
+10.41 | +6.84 | 1.3 | 1.4 | -0.1 | -2.6 | 0.2 | 1.3 | -1.6 | 1.1 | 1.3 | 1.8 | 3.2 | 2.8 |
| 2003 |
+22.27 | +19.83 | -1.5 | -0.4 | -0.2 | 5.7 | 4.1 | 0.9 | 0.1 | 1.7 | 1.2 | 3.4 | 1.1 | 4.4 |
| 2002 |
-8.59 | -10.80 | -1.3 | 0.0 | 2.1 | -1.4 | 0.1 | -3.9 | -5.0 | 1.1 | -5.7 | 4.1 | 3.2 | -1.5 |
| 2001 |
-5.46 | -6.96 | 2.4 | -4.8 | -3.6 | 3.8 | -0.4 | -1.6 | 0.1 | -1.9 | -4.9 | 2.3 | 3.0 | 0.5 |
| 2000 |
-4.61 | -7.77 | -3.5 | 0.9 | 4.4 | -2.9 | -1.7 | 2.8 | -1.3 | 2.3 | -3.0 | -1.1 | -2.9 | 1.7 |
| 1999 |
+16.48 | +13.45 | 1.4 | -2.0 | 3.2 | 3.3 | -3.0 | 2.9 | -0.5 | -0.2 | -0.2 | 3.3 | 2.0 | 5.4 |
| 1998 |
+15.37 | +13.54 | 1.6 | 4.4 | 2.5 | 0.9 | -1.3 | 1.0 | 0.0 | -9.6 | 2.8 | 6.0 | 3.7 | 3.2 |
| 1997 |
+9.98 | +8.15 | 0.6 | 0.8 | -1.9 | 2.1 | 4.4 | 3.7 | 3.2 | -4.7 | 4.0 | -3.9 | 0.8 | 1.0 |
| 1996 |
+10.14 | +6.54 | 1.5 | -0.6 | 0.8 | 1.6 | 0.0 | 0.7 | -1.9 | 0.9 | 2.9 | 0.9 | 4.1 | -1.1 |
| 1995 |
+18.30 | +15.38 | -0.8 | 0.9 | 2.5 | 3.1 | 2.3 | 0.0 | 3.0 | -0.8 | 2.1 | -0.6 | 2.8 | 2.6 |
* Note: Portofolio Returns, up to December 2013, are simulated. They have been calculated using the historical series of equivalent ETFs / Assets, instead of the actual ETFs of the portfolio.
In particular, it has been used:
- VT - Vanguard Total World Stock: simulated historical serie, up to December 2008
- BND - Vanguard Total Bond Market: simulated historical serie, up to December 2007
- BNDX - Vanguard Total International Bond: simulated historical serie, up to December 2013
- EMB - iShares JP Morgan USD Em Mkts Bd: simulated historical serie, up to December 2007