The Canada Stocks/Bonds 40/60 Portfolio can be implemented with 2 ETFs. This portfolio has a medium risk, signifying moderate fluctuations in value. It is suitable for investors with a balanced approach to risk and return, seeking steady growth while tolerating some level of volatility.

The portfolio asset allocation is: 40% on the Stock Market, 60% on Fixed Income, 0% on Commodities. In general, bonds are useful for mitigating overall portfolio risk, especially if they are issued by national entities or highly reliable companies. This portfolio has a 60% allocation to bonds, leading to its classification as medium risk.

As of June 2026, in the previous 30 Years, the Canada Stocks/Bonds 40/60 Portfolio obtained a 6.38% compound annual return, with a 7.02% standard deviation. It suffered a maximum drawdown of -17.50% that required 18 months to be recovered.

Disclaimer: The simulations on this website are provided in good faith but should NOT be taken as investment advice. We are not liable for any errors or actions based on this information. The authors of the website are not affiliated with the portfolio creators, who are the sole owners of their intellectual property. The translation of asset allocations into ETFs is based on the interpretation of LazyPortfolioETF.com and may not exactly reflect the original intent of the portfolio creators. Content is for informational, educational, illustrative, and entertainment purposes only.
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Table of contents

Asset Allocation and ETFs

To effectively implement the asset allocation of the Canada Stocks/Bonds 40/60 Portfolio, investors can utilize the following selection of ETFs. These ETFs have been chosen specifically for their ability to represent each asset class within the portfolio and facilitate ease of management.

40% Stocks
60% Fixed Income
0% Commodities

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Weight
(%)		 ETF
Ticker		 ETF
Currency		 ETF Name Investment Themes (Orig.Currency)
40.00
VCN.TO
CAD Vanguard FTSE Canada All Cap Index Stocks (CAD)
60.00
ZAG.TO
CAD BMO Aggregate Bond Index Fixed Income (CAD)

Portfolio and ETF Returns as of Jun 30, 2026

CANADA STOCKS/BONDS 40/60 PORTFOLIO
Capital Growth
Inflation Adj:
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Chg (%) Return (%) Return (%) as of Jun 30, 2026
1 Day Time ET(*) --- YTD
(6M) 		1M 6M 1Y 5Y 10Y 30Y MAX
(~39Y)
Investment Return --- --- 5.64 0.58 5.64 14.39 6.44 6.14 6.38 6.58
Canada Inflation Adjusted Return 2.77 0.58 2.77 10.88 2.64 3.28 4.12 4.15
Component Returns
VCN.TO
CAD Vanguard FTSE Canada All Cap Index --- 0 --- 10.89 0.79 10.89 31.22 14.90 12.67 8.81 8.11
ZAG.TO
CAD BMO Aggregate Bond Index --- 0 --- 2.13 0.43 2.13 3.17 0.64 1.54 4.21 5.06
Returns over 1 year are annualized
(*) Eastern Time (ET - America/New York)
The live monthly return is calculated by assuming, for each asset, the weight defined by the base asset allocation.
Canada Inflation is updated to May 2026. Pending updates, the monthly inflation is set at 0% for the subsequent periods. Inflation (annualized) is 1Y: 3.16% , 5Y: 3.70% , 10Y: 2.77% , 30Y: 2.17%
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Learn about historical correlations here: see how the main asset classes relate to each other.

Portfolio Metrics as of Jun 30, 2026

CANADA STOCKS/BONDS 40/60 PORTFOLIO
Advanced Metrics
1 January 1988 - 30 June 2026 (~39 years)
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Metrics as of Jun 30, 2026
YTD
(6M) 		1M 3M 6M 1Y 3Y 5Y 10Y 20Y 30Y MAX
(~39Y)
Investment Return (%)
5.64 0.58 4.10 5.64 14.39 11.93 6.44 6.14 5.69 6.38 6.58
Growth of 1$ 1.06 1.01 1.04 1.06 1.14 1.40 1.37 1.81 3.02 6.40 11.64
Infl. Adjusted Return (%)
2.77 0.58 2.75 2.77 10.88 9.13 2.64 3.28 3.40 4.12 4.15
Canada Inflation (%) 2.79 0.00 1.31 2.79 3.16 2.56 3.70 2.77 2.21 2.17 2.34
Pending updates, the monthly inflation of Jun 2026 and beyond is set at 0%. Returns / Inflation rates over 1 year are annualized.
DRAWDOWN
Inflation Adjusted:
Inflation Adjusted:
 Current 1Y 3Y 5Y 10Y 20Y 30Y MAX
Deepest Drawdown Depth (%) 0.00 -2.95 -4.79 -11.78 -11.78 -17.50 -17.50 -17.50
Start to Recovery (# months)
3 4 27 27 18 18 18
Start (yyyy mm) 2026 03 2023 08 2022 01 2022 01 2008 06 2008 06 2008 06
Start to Bottom (# months) 1 3 9 9 9 9 9
Bottom (yyyy mm) 2026 03 2023 10 2022 09 2022 09 2009 02 2009 02 2009 02
Bottom to End (# months) 2 1 18 18 9 9 9
End (yyyy mm) 2026 05 2023 11 2024 03 2024 03 2009 11 2009 11 2009 11
Longest Drawdown Depth (%)
same
same
same
same		 -11.78 -13.57 -13.57
Start to Recovery (# months)
27 40 40
Start (yyyy mm) 2026 03 2023 08 2022 01 2022 01 2022 01 2000 09 2000 09
Start to Bottom (# months) 1 3 9 9 9 25 25
Bottom (yyyy mm) 2026 03 2023 10 2022 09 2022 09 2022 09 2002 09 2002 09
Bottom to End (# months) 2 1 18 18 18 15 15
End (yyyy mm) 2026 05 2023 11 2024 03 2024 03 2024 03 2003 12 2003 12
Longest negative period (# months)
2 5 29 35 35 41 41
Start (yyyy mm) 2026 03 2024 12 2021 07 2020 12 2020 12 2005 10 2005 10
End (yyyy mm) 2026 04 2025 04 2023 11 2023 10 2023 10 2009 02 2009 02
Annualized Return (%) -7.76 -0.99 -0.58 -0.48 -0.48 0.00 0.00
Adjusting for units held makes the drawdown reflect real performance, just like in the no-cash-flow case.
Deepest Drawdown Depth (%) -1.17 -3.82 -5.09 -18.12 -18.12 -18.12 -18.12 -18.12
Start to Recovery (# months)
4* 4* 4 37 37 37 37 37
Start (yyyy mm) 2026 03 2023 08 2022 01 2022 01 2022 01 2022 01 2022 01
Start to Bottom (# months) 1 3 22 22 22 22 22
Bottom (yyyy mm) 2026 03 2023 10 2023 10 2023 10 2023 10 2023 10 2023 10
Bottom to End (# months) 3 1 15 15 15 15 15
End (yyyy mm) - 2023 11 2025 01 2025 01 2025 01 2025 01 2025 01
Longest Drawdown Depth (%)
same		 -2.01
same
same
same		 -18.02 -18.02
Start to Recovery (# months)
5 52 52
Start (yyyy mm) 2026 03 2025 02 2022 01 2022 01 2022 01 2000 09 2000 09
Start to Bottom (# months) 1 3 22 22 22 25 25
Bottom (yyyy mm) 2026 03 2025 04 2023 10 2023 10 2023 10 2002 09 2002 09
Bottom to End (# months) 3 2 15 15 15 27 27
End (yyyy mm) - 2025 06 2025 01 2025 01 2025 01 2004 12 2004 12
Longest negative period (# months)
4 5 46 87 105 105 105
Start (yyyy mm) 2025 12 2024 12 2021 07 2016 08 2015 02 2015 02 2015 02
End (yyyy mm) 2026 03 2025 04 2025 04 2023 10 2023 10 2023 10 2023 10
Annualized Return (%) -0.52 -3.30 -0.01 -0.23 -0.15 -0.15 -0.15
Drawdowns / Negative periods marked with * are in progress
Adjusting for units held makes the drawdown reflect real performance, just like in the no-cash-flow case.
RISK INDICATORS
1Y 3Y 5Y 10Y 20Y 30Y MAX
Standard Deviation (%) 6.02 6.73 8.00 7.48 6.73 7.02 7.09
Sharpe Ratio 1.75 1.09 0.37 0.53 0.62 0.59 0.52
Sortino Ratio 2.30 1.56 0.51 0.72 0.82 0.79 0.69
Ulcer Index 0.91 1.25 4.51 3.48 3.87 4.61 4.47
Ratio: Return / Standard Deviation 2.39 1.77 0.80 0.82 0.85 0.91 0.93
Ratio: Return / Deepest Drawdown 4.88 2.49 0.55 0.52 0.32 0.36 0.38
Positive Months (%)
83.33 69.44 61.66 65.00 67.08 66.66 66.01
Positive Months 10 25 37 78 161 240 305
Negative Months 2 11 23 42 79 120 157
LONG TERM RETURNS
Inflation Adjusted:
Inflation Adjusted:
 1Y 3Y 5Y 10Y 20Y 30Y MAX
Best 10 Years Return (%) - Annualized 6.14 6.64 8.06 10.28
Worst 10 Years Return (%) - Annualized 3.55 3.55 3.55
Best 10 Years Return (%) - Annualized 3.28 4.83 5.84 8.13
Worst 10 Years Return (%) - Annualized 0.95 0.95 0.95
TIMEFRAMES
Inflation Adjusted:
Inflation Adjusted:
 1M 3M 6M 1Y 3Y 5Y 10Y 20Y 30Y MAX
··· As of Jun 2026 - Over the previous 30Y
Best Rolling Return (%) - Annualized 26.94 13.68 10.96 8.06 6.66 6.38
Worst Rolling Return (%) - Annualized -14.53 -1.09 1.88 3.55 4.73
Positive Periods (%) 80.8 97.8 100.0 100.0 100.0 100.0
Best Rolling Return (%) - Annualized 23.75 11.72 8.81 5.84 4.70 4.12
Worst Rolling Return (%) - Annualized -15.73 -3.84 -0.46 0.95 2.75
Positive Periods (%) 75.0 84.9 97.3 100.0 100.0 100.0
95% VaR - Value at Risk (%) - Cumulative
2.80 4.16 4.94 7.42 0.00 0.00 0.00 0.00
95% CVaR - Conditional Value at Risk (%) 3.64 5.62 7.00 9.95 0.00 0.00 0.00 0.00
99% VaR - Value at Risk (%) - Cumulative
4.18 6.55 8.32 11.24 2.81 0.00 0.00 0.00
99% CVaR - Conditional Value at Risk (%) 5.06 8.08 10.48 13.44 3.07 0.00 0.00 0.00
Short term VaRs: analytical | 1+ year VaRs: historical data
Safe Withdrawal Rate (%) 89.75 29.13 18.26 10.32 6.16 6.25
Perpetual Withdrawal Rate (%) --- --- --- 1.03 2.78 4.39
% based on initial capital, inflation-adj. monthly withdrawals afterwards | Credits: BestRetirementPortfolio.com
··· All available data (Jan 1988 - Jun 2026)
Best Rolling Return (%) - Annualized 28.75 15.03 12.63 10.28 7.84 6.78
Worst Rolling Return (%) - Annualized -14.53 -1.09 1.88 3.55 4.73 5.47
Positive Periods (%) 82.4 98.3 100.0 100.0 100.0 100.0
Best Rolling Return (%) - Annualized 27.11 13.54 10.68 8.13 5.77 4.86
Worst Rolling Return (%) - Annualized -15.73 -3.84 -0.46 0.95 2.75 3.33
Positive Periods (%) 75.1 85.9 98.0 100.0 100.0 100.0
95% VaR - Value at Risk (%) - Cumulative
2.81 4.17 4.92 5.83 0.00 0.00 0.00 0.00
95% CVaR - Conditional Value at Risk (%) 3.66 5.64 7.00 9.26 0.00 0.00 0.00 0.00
99% VaR - Value at Risk (%) - Cumulative
4.21 6.58 8.33 11.07 1.81 0.00 0.00 0.00
99% CVaR - Conditional Value at Risk (%) 5.09 8.12 10.51 12.44 2.98 0.00 0.00 0.00
Short term VaRs: analytical | 1+ year VaRs: historical data
Safe Withdrawal Rate (%) 89.75 29.13 18.26 10.32 6.16 5.74
Perpetual Withdrawal Rate (%) --- --- --- 1.03 2.78 3.66
% based on initial capital, inflation-adj. monthly withdrawals afterwards | Credits: BestRetirementPortfolio.com
  • Annualized Portfolio Return: the annualized geometric mean return of the portfolio. When cashflows are involved, it is calculated using the Money-Weighted Rate of Return (MWRR), based on the Modified Dietz formula.
  • 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. When cashflows are involved, portfolio values are normalized by the invested capital (i.e. owned quotes) at each time step: this isolates the effect of market performance from capital contributions, avoiding misleading drawdowns caused by large inflows that artificially lift portfolio value and, as a result, the drawdowns match the ones without cash flows.
  • 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.
  • Value at Risk (VaR): it's an evaluation of a cumulative worst-case loss (in absolute value), associated with a probability (95%-99%) and a time horizon. For short term, it's calculated based on the expected return and standard deviation, assuming a normal distribution of monthly returns. For long term is retrieved by the historical rolling return data.
  • Conditional Value at Risk (CVaR): it represents the average expected loss if that worst-case threshold (95%-99%) is ever crossed.
  • 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.
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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.

CANADA STOCKS/BONDS 40/60 PORTFOLIO
Drawdown periods
Inflation Adj:
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Rolling Return Analysis

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.

CANADA STOCKS/BONDS 40/60 PORTFOLIO
Annualized Rolling Returns — Over Time & Distribution

Holding Periods and Returns

Holding periods are based on rolling periods: each rolling window represents the return an investor would have achieved by holding the investment for a fixed period (e.g., 10, 20, or 30 years) starting from different dates.

CANADA STOCKS/BONDS 40/60 PORTFOLIO
Annualized Rolling Returns
Inflation Adj:
Percentiles: – Changes pending. Click 'Update' to refresh

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Time to Target

What it shows: Months to reach your target capital from each historical entry point, accounting for your initial investment and periodic contributions.

CANADA STOCKS/BONDS 40/60 PORTFOLIO
Time to reach your Target Capital

Monthly Returns and Seasonality

This section provides a visual/tabular representation of the performance variability in the Canada Stocks/Bonds 40/60 Portfolio over time. It illustrates the distribution of monthly returns, showcasing the range and frequency of positive and negative returns.

CANADA STOCKS/BONDS 40/60 PORTFOLIO
Monthly Returns Distribution

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Monthly Seasonality Analysis
38 full years are available for analysis

Returns, up to September 2013, 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.

In particular, the series derived from equivalent datasets are:

  • Vanguard FTSE Canada All Cap Index (VCN.TO), up to September 2013
  • BMO Aggregate Bond Index (ZAG.TO), up to February 2010

Portfolio efficiency

Compare Canada Stocks/Bonds 40/60 Portfolio performance and efficiency against top portfolios to identify strengths and areas for improvement.


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Allocation
Stocks Bonds Comm Ann.
Return▾		 Standard
Deviation		 Ulcer
Index		 Deepest
Drawdown		 Longest
Drawdown		 Longest
Neg.Period		 Avg
Rank

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Allocation
Stocks Bonds Comm Ann.
Return▾		 Standard
Deviation		 Ulcer
Index		 Deepest
Drawdown		 Longest
Drawdown		 Longest
Neg.Period		 Avg
Rank

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Allocation
Stocks Bonds Comm Ann.
Return▾		 Standard
Deviation		 Ulcer
Index		 Deepest
Drawdown		 Longest
Drawdown		 Longest
Neg.Period		 Avg
Rank
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Your practical guide to Building Wealth.
Master ETF Investing & maximize profits with Lazy Portfolios & Passive Strategies.
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