Last Update: 31 May 2020
The Dynamic 40/60 Income Portfolio is exposed for 40% on the Stock Market.
It's a Medium Risk portfolio and it can be replicated with 5 ETFs.
In the last 10 years, the portfolio obtained a 6.34% compound annual return, with a 6.56% standard deviation.
In 2019, the portfolio granted a 4.21% dividend yield. If you are interested in getting periodic income, please refer to the Dynamic 40/60 Income Portfolio: Dividend Yield page.
Asset Allocation and ETFs
The Dynamic 40/60 Income Portfolio has the following asset allocation:
The Dynamic 40/60 Income Portfolio can be replicated with the following ETFs:
| Weight | Ticker | ETF Name | Investment Themes | |
|---|---|---|---|---|
| 20.00 % | PFF | iShares Preferred and Income Securities ETF | Preferred Stock, U.S. | |
| 20.00 % | VTI | Vanguard Total Stock Market | Equity, U.S., Large Cap | |
| 20.00 % | SHY | iShares 1-3 Year Treasury Bond | Bond, U.S., Short Term | |
| 20.00 % | EMB | iShares JP Morgan USD Em Mkts Bd | Bond, Emerging Markets, All-Term | |
| 20.00 % | HYG | iShares iBoxx $ High Yield Corporate Bond | Bond, U.S., Intermediate-Term |
Portfolio and ETF Returns
The Dynamic 40/60 Income Portfolio guaranteed the following returns.
| 1M | 3M | 6M | 1Y | 3Y(*) | 5Y(*) | 10Y(*) | |
|---|---|---|---|---|---|---|---|
| Dynamic 40/60 Income Portfolio | +3.18 | -1.27 | -1.68 | +4.31 | +3.93 | +4.37 | +6.34 |
| Components | |||||||
| PFF - iShares Preferred and Income Securities ETF | +1.92 | -1.73 | -3.28 | +1.10 | +1.96 | +3.15 | +5.75 |
| VTI - Vanguard Total Stock Market | +5.40 | +2.65 | -2.97 | +11.28 | +9.52 | +9.14 | +12.78 |
| SHY - iShares 1-3 Year Treasury Bond | -0.08 | +1.44 | +3.08 | +4.44 | +2.52 | +1.72 | +1.24 |
| EMB - iShares JP Morgan USD Em Mkts Bd | +6.27 | -5.66 | -2.91 | +1.31 | +2.14 | +3.84 | +5.30 |
| HYG - iShares iBoxx $ High Yield Corporate Bond | +2.95 | -2.84 | -2.71 | +2.22 | +2.79 | +3.38 | +5.85 |
- a rebalancing of the components at the beginning of each year (i.e. at every January 1st)
- the reinvestment of dividends
If you are interested in getting periodic income, please refer to the Dynamic 40/60 Income Portfolio: Dividend Yield page.
Historical Returns
Dynamic 40/60 Income Portfolio - Historical returns and stats.
| Period | Returns May 2020 |
Standard Deviation * |
Max Drawdown |
Months Pos - Neg |
|---|---|---|---|---|
|
1M
|
+3.18%
|
0.00%
|
1 - 0 | |
|
3M
|
-1.27%
|
-9.80%
Mar 2020 - Mar 2020
|
2 - 1 | |
|
6M
|
-1.68%
|
-12.42%
Feb 2020 - Mar 2020
|
4 - 2 | |
|
YTD
|
-3.60%
|
-12.42%
Feb 2020 - Mar 2020
|
3 - 2 | |
|
1Y
|
+4.31%
|
12.86%
|
-12.42%
Feb 2020 - Mar 2020
|
10 - 2 |
|
3Y
|
+3.93%
annualized
|
8.46%
|
-12.42%
Feb 2020 - Mar 2020
|
27 - 9 |
|
5Y
|
+4.37%
annualized
|
7.19%
|
-12.42%
Feb 2020 - Mar 2020
|
43 - 17 |
|
10Y
|
+6.34%
annualized
|
6.56%
|
-12.42%
Feb 2020 - Mar 2020
|
87 - 33 |
|
MAX
01 Jan 2008
|
+5.51%
annualized
|
9.52%
|
-29.06%
Jun 2008 - Feb 2009
|
104 - 45 |
* Annualized St.Dev. of monthly returns
Best Medium Risk Porftolios, ordered by 10Y annualized return.
| Portfolio | 10Y Return ▾ | #ETF | Stocks | Bonds | Comm. | ||
|---|---|---|---|---|---|---|---|
| Couch Potato Scott Burns |
+8.35% | 2 | 50 | 50 | 0 | Compare | |
| All Weather Portfolio Ray Dalio |
+7.78% | 5 | 30 | 55 | 15 | Compare | |
| Stocks/Bonds 40/60 |
+7.57% | 2 | 40 | 60 | 0 | Compare | |
| Permanent Portfolio Harry Browne |
+6.73% | 4 | 25 | 50 | 25 | Compare | |
| Edge Select Moderately Conservative Merrill Lynch |
+6.71% | 12 | 37 | 63 | 0 | Compare |
Capital Growth
Drawdowns
Rolling Returns
Dynamic 40/60 Income Portfolio: annualized rolling and average returns
| Return (*) | Negative Periods |
|||
|---|---|---|---|---|
| Rolling Period | Average | Best | Worst | |
| 1 Year |
+6.86% |
+45.82% Mar 2009 - Feb 2010 |
-27.71% Mar 2008 - Feb 2009 |
13.04% |
| 2 Years |
+7.16% |
+27.87% Mar 2009 - Feb 2011 |
-0.13% Apr 2018 - Mar 2020 |
0.79% |
| 3 Years |
+7.04% |
+20.25% Mar 2009 - Feb 2012 |
+1.42% Apr 2017 - Mar 2020 |
0.00% |
| 5 Years |
+6.81% |
+15.13% Mar 2009 - Feb 2014 |
+2.67% Apr 2015 - Mar 2020 |
0.00% |
| 7 Years |
+6.79% |
+11.17% Mar 2009 - Feb 2016 |
+3.68% Apr 2013 - Mar 2020 |
0.00% |
| 10 Years |
+7.03% |
+9.82% Mar 2009 - Feb 2019 |
+5.09% Apr 2010 - Mar 2020 |
0.00% |
* Annualized rolling and average returns over full calendar month periods
Yearly Returns - Monthly Returns Heatmap
| Months | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | Return | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
| 2020 |
-3.60% | 0.6 | -2.9 | -9.8 | 6.1 | 3.2 | |||||||
| 2019 |
+15.91% | 4.8 | 1.2 | 1.3 | 1.2 | -1.5 | 3.2 | 0.8 | 0.3 | 0.4 | 0.7 | 0.7 | 2.0 |
| 2018 |
-3.18% | 0.6 | -1.4 | -0.2 | -0.4 | 0.6 | 0.2 | 1.5 | 0.8 | 0.2 | -2.9 | -0.1 | -2.1 |
| 2017 |
+9.18% | 1.4 | 1.8 | 0.2 | 1.0 | 0.7 | 0.2 | 1.0 | 0.5 | 0.5 | 0.4 | 0.6 | 0.4 |
| 2016 |
+7.53% | -1.5 | 0.7 | 3.1 | 1.3 | 0.6 | 1.6 | 1.6 | 0.7 | 0.2 | -1.2 | -0.8 | 1.2 |
| 2015 |
+0.21% | 0.4 | 1.9 | -0.3 | 0.6 | 0.3 | -1.3 | 0.6 | -1.9 | -1.5 | 3.1 | -0.2 | -1.2 |
| 2014 |
+7.01% | -0.1 | 2.6 | 0.7 | 0.7 | 1.7 | 0.8 | -1.1 | 2.0 | -1.4 | 1.4 | 0.5 | -0.8 |
| 2013 |
+6.13% | 0.9 | 0.6 | 1.1 | 1.7 | -1.1 | -1.9 | 1.8 | -1.8 | 1.8 | 2.2 | 0.5 | 0.5 |
| 2012 |
+12.70% | 3.0 | 2.4 | 0.5 | 0.5 | -2.7 | 3.0 | 1.5 | 1.4 | 1.1 | 0.1 | 0.7 | 0.8 |
| 2011 |
+2.96% | 0.7 | 1.3 | 0.6 | 1.7 | 0.3 | -0.5 | -0.3 | -2.0 | -4.6 | 6.0 | -1.4 | 1.5 |
| 2010 |
+11.25% | -0.8 | 2.1 | 2.5 | 1.0 | -3.7 | 0.0 | 4.6 | 0.0 | 2.9 | 1.6 | -1.3 | 2.1 |
| 2009 |
+22.37% | -5.6 | -10.0 | 6.4 | 9.7 | 5.9 | 1.6 | 6.1 | 0.5 | 4.2 | -1.5 | 2.1 | 2.6 |
| 2008 |
-14.80% | 0.9 | -0.7 | -1.2 | 2.9 | 0.2 | -4.6 | -0.7 | 0.4 | -10.0 | -8.7 | -2.1 | 9.2 |