Data Source: from January 1995 to December 2021

Last Update: 31 December 2021

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 6.92% compound annual return, with a 6.24% standard deviation.

In the last 25 years, a 7.09% compound annual return, with a 8.05% standard deviation.

Asset Allocation and ETFs

The Dynamic 40/60 Income Portfolio has the following asset allocation:

40% Stocks
60% Fixed Income
0% Commodities

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 % EMB iShares JP Morgan USD Em Mkts Bd Bond, Emerging Markets, All-Term
20.00 % SHY iShares 1-3 Year Treasury Bond Bond, U.S., Short Term
20.00 % HYG iShares iBoxx $ High Yield Corporate Bond Bond, U.S., Intermediate-Term
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

The Dynamic 40/60 Income Portfolio guaranteed the following returns.

DYNAMIC 40/60 INCOME PORTFOLIO RETURNS (%)
Last Update: 31 December 2021
Swipe left to see all data
1M 3M 6M 1Y 3Y(*) 5Y(*) 10Y(*) 20Y(*) 25Y(*)
Dynamic 40/60 Income Portfolio +2.34 +2.73 +2.53 +6.72 +10.23 +7.20 +6.92 +6.62 +7.09
--- Inflation Adjusted return +1.86 +0.51 -0.84 -0.38 +6.47 +4.16 +4.71 +4.21 +4.70
Components
PFF
iShares Preferred and Income Securities ETF 		+3.32 +3.01 +2.80 +7.13 +10.09 +6.59 +6.85 +5.66 +6.19
VTI
Vanguard Total Stock Market 		+3.79 +9.11 +9.08 +25.67 +25.73 +17.96 +16.29 +9.91 +9.88
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
SHY
iShares 1-3 Year Treasury Bond 		-0.21 -0.60 -0.57 -0.72 +1.88 +1.47 +0.95 +2.17 +3.01
HYG
iShares iBoxx $ High Yield Corporate Bond 		+2.28 +0.77 +1.12 +3.75 +7.34 +5.14 +5.23 +5.81 +5.51
(*) annualized
Portfolio returns are calculated assuming:
  • 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 2.85% dividend yield. If you are interested in getting periodic income, please refer to the Dynamic 40/60 Income Portfolio: Dividend Yield page.

Readings that may interest you
Action Workbook Based On Principles By Ray Dalio
Babylon Ka Sabse Amir Aadmi (??????? ?? ???? ???? ????) (Hindi Edition)
The 48 Laws of Power

Historical Returns

Historical returns and stats of Dynamic 40/60 Income Portfolio. Total Returns and Inflation Adjusted Returns are both mentioned.

DYNAMIC 40/60 INCOME PORTFOLIO
Last Update: 31 December 2021
Swipe left to see all data
Period Return
Dec 2021
update		 Return
Inflation
Adjusted		 Standard
Deviation(*)		 Max
Drawdown		 Months
Pos - Neg
1M
Dec 2021
+2.34%
+1.86%
0.00%
1 - 0
3M
+2.73%
+0.51%
-1.34%
Nov 2021 - Nov 2021
2 - 1
6M
+2.53%
-0.84%
-1.83%
Sep 2021 - Sep 2021
4 - 2
YTD
+6.72%
-0.38%
4.45%
-1.83%
Sep 2021 - Sep 2021
8 - 4
67% pos
1Y
+6.72%
-0.38%
4.45%
-1.83%
Sep 2021 - Sep 2021
8 - 4
67% pos
3Y
+10.23%
annualized
+6.47%
annualized
9.05%
-12.42%
Feb 2020 - Mar 2020
27 - 9
75% pos
5Y
+7.20%
annualized
+4.16%
annualized
7.45%
-12.42%
Feb 2020 - Mar 2020
45 - 15
75% pos
10Y
+6.92%
annualized
+4.71%
annualized
6.24%
-12.42%
Feb 2020 - Mar 2020
88 - 32
73% pos
20Y
+6.62%
annualized
+4.21%
annualized
8.17%
-29.84%
Nov 2007 - Feb 2009
171 - 69
71% pos
25Y
+7.09%
annualized
+4.70%
annualized
8.05%
-29.84%
Nov 2007 - Feb 2009
212 - 88
71% pos
MAX
01 Jan 1995
+8.00%
annualized
+5.53%
annualized
7.88%
-29.84%
Nov 2007 - Feb 2009
234 - 90
72% pos
(*)Annualized St.Dev. of monthly returns

Portfolio efficiency

Is the Dynamic 40/60 Income Portfolio actually efficient, compared to other Lazy Portfolios?

Best Classic Portfolios, with Medium Risk, ordered by 25 Years annualized return.

25 Years Stats
% Allocation
Portfolio Return▾ Drawdown Stocks Bonds Comm.
Couch Potato
Scott Burns		 +8.33% -27.03% 50 50 0 Compare
All Weather Portfolio
Ray Dalio		 +7.89% -12.19% 30 55 15 Compare
Robo Advisor 50
Betterment		 +7.63% -30.72% 49.9 50.1 0 Compare
Simplified Permanent Portfolio
 +7.48% -13.28% 25 50 25 Compare
Stocks/Bonds 40/60
 +7.24% -19.17% 40 60 0 Compare

See all portfolios

Our overall ratings, assigned to the Dynamic 40/60 Income Portfolio. The portfolio is classified as Medium Risk.

Very High Risk
Bond weight:
Less than 25%
High Risk
Bond weight:
25% - 49.99%
Medium Risk
Bond weight:
50% - 74.99%
Low Risk
Bond weight:
At least 75%
Medium Risk
Portfolios		 All
Portfolios
25 Years Ann. Return
(Inflation Adjusted)		 +7.09%
(+4.70%)
Average : 3 / 5
Average : 3 / 5
Standard Deviation
over 25 Years		 8.05%
Poor : 1 / 5
Good : 3.8 / 5
Maximum Drawdown
over 25 Years		 -29.84%
Bad : 1 / 5
Good : 3.2 / 5
Easy to manage 5 ETFs
Average : 3 / 5
Average : 3 / 5
Rating assigned considering all the Medium Risk Portfolios Rating assigned considering all the Portfolios in the database

Capital Growth

Time Range:

An investment of 1000$, since January 1997, now would be worth 5547.56$, with a total return of 454.76% (7.09% annualized).

The Inflation Adjusted Capital now would be 3150.04$, with a net total return of 215.00% (4.70% annualized).

Drawdowns

Time Range:

Worst drawdowns since January 1997 - Chart and Data

Swipe left to see all data
Drawdown period
Recovery period
Total
Drawdown Start Bottom #Months End #Months #Months
-29.84% Nov 2007 Feb 2009 16 Dec 2009 10 26
-12.42% Feb 2020 Mar 2020 2 Jul 2020 4 6
-9.38% May 1998 Aug 1998 4 Dec 1998 4 8
-7.19% Jun 2011 Sep 2011 4 Jan 2012 4 8
-6.73% May 2002 Jul 2002 3 Jan 2003 6 9
-5.09% Oct 2018 Dec 2018 3 Feb 2019 2 5
-4.13% Sep 2000 Nov 2000 3 Jan 2001 2 5
-4.06% Jun 2015 Sep 2015 4 Apr 2016 7 11
-3.72% May 2010 May 2010 1 Jul 2010 2 3
-3.69% Apr 2000 May 2000 2 Jul 2000 2 4
-3.31% Apr 2004 May 2004 2 Sep 2004 4 6
-3.24% Sep 2001 Sep 2001 1 Nov 2001 2 3
-3.23% Jun 2007 Jul 2007 2 Oct 2007 3 5
-3.06% May 2013 Aug 2013 4 Oct 2013 2 6
-2.72% May 2012 May 2012 1 Jun 2012 1 2
-2.49% Oct 1997 Oct 1997 1 Dec 1997 2 3
-2.15% May 1999 May 1999 1 Oct 1999 5 6
-2.09% Feb 2001 Mar 2001 2 May 2001 2 4
-1.95% Oct 2016 Nov 2016 2 Jan 2017 2 4
-1.93% Feb 2018 Apr 2018 3 Jul 2018 3 6

Rolling Returns ( more details)

Dynamic 40/60 Income Portfolio: annualized rolling and average returns

Swipe left to see all data
Return (*) Negative
Periods
Rolling Period Average Best Worst
1 Year
 +8.08% +45.82%
Mar 2009 - Feb 2010 		-27.71%
Mar 2008 - Feb 2009 		9.58%
2 Years
 +7.60% +27.87%
Mar 2009 - Feb 2011 		-14.95%
Mar 2007 - Feb 2009 		4.98%
3 Years
 +7.32% +20.25%
Mar 2009 - Feb 2012 		-7.96%
Mar 2006 - Feb 2009 		3.46%
5 Years
 +7.07% +15.13%
Mar 2009 - Feb 2014 		-2.29%
Mar 2004 - Feb 2009 		1.13%
7 Years
 +6.96% +12.04%
Jan 1995 - Dec 2001 		+1.44%
Mar 2002 - Feb 2009 		0.00%
10 Years
 +6.91% +11.43%
Jan 1995 - Dec 2004 		+3.40%
Mar 1999 - Feb 2009 		0.00%
15 Years
 +6.77% +8.87%
Apr 1995 - Mar 2010 		+5.00%
Apr 2005 - Mar 2020 		0.00%
20 Years
 +6.94% +8.62%
Jan 1995 - Dec 2014 		+5.68%
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 Dynamic 40/60 Income Portfolio: Rolling Returns page.

Seasonality

Dynamic 40/60 Income 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.

Swipe left to see all data
Monthly Average Return (%) and Gain Frequency
Return (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average
Win %		 0.67
74% 		0.30
70% 		0.46
70% 		1.60
89% 		0.50
63% 		0.48
74% 		0.83
67% 		0.40
74% 		0.04
63% 		0.48
70% 		0.82
67% 		1.44
85%
Best
Year		 4.8
2019 		2.6
2014 		6.4
2009 		9.7
2009 		5.9
2009 		3.5
2000 		6.1
2009 		2.9
2000 		4.2
2009 		5.9
2011 		4.8
2020 		9.2
2008
Worst
Year		 -5.6
2009 		-10.0
2009 		-9.8
2020 		-2.6
2004 		-3.7
2010 		-4.6
2008 		-3.3
2002 		-9.1
1998 		-10.0
2008 		-8.7
2008 		-2.6
2007 		-2.1
2018
Statistics calculated for the period Jan 1995 - Dec 2021

For further information about the seasonality, check the Asset Class Seasonality page.

Monthly/Yearly Returns

Dynamic 40/60 Income Portfolio monthly and yearly returns: how is the distribution of the returns recorded so far?

MONTHLY RETURNS HISTOGRAM
234 Positive Months (72%) - 90 Negative Months (28%)
Jan 1995 - Dec 2021
Swipe left to see all data
Yearly Return(%)
Monthly Return(%)
Year Total Infl.Adj Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2021
 +6.72 -0.38 -0.8 -0.2 1.5 1.9 0.5 1.3 0.7 1.0 -1.8 1.8 -1.3 2.3
2020
 +8.28 +6.89 0.6 -2.9 -9.8 6.1 3.2 0.7 3.9 1.9 -1.4 -0.5 4.8 2.3
2019
 +15.91 +13.34 4.8 1.2 1.3 1.2 -1.5 3.2 0.8 0.3 0.4 0.7 0.6 2.0
2018
 -3.18 -5.00 0.6 -1.4 -0.2 -0.4 0.6 0.2 1.5 0.8 0.1 -2.9 -0.1 -2.1
2017
 +9.18 +6.94 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 +5.36 -1.5 0.7 3.0 1.3 0.6 1.6 1.6 0.7 0.2 -1.2 -0.8 1.2
2015
 +0.21 -0.42 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 +6.31 -0.1 2.6 0.7 0.7 1.6 0.8 -1.1 2.0 -1.4 1.4 0.5 -0.8
2013
 +6.13 +4.55 0.9 0.6 1.1 1.7 -1.1 -1.9 1.8 -1.8 1.8 2.1 0.5 0.5
2012
 +12.70 +10.75 3.0 2.4 0.4 0.5 -2.7 3.0 1.5 1.4 1.1 0.1 0.7 0.8
2011
 +2.96 -0.09 0.7 1.3 0.6 1.7 0.3 -0.5 -0.3 -2.0 -4.6 5.9 -1.4 1.5
2010
 +11.25 +9.67 -0.8 2.1 2.5 1.0 -3.7 0.0 4.6 0.0 2.9 1.6 -1.2 2.1
2009
 +22.37 +19.03 -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 -14.78 0.9 -0.7 -1.2 2.9 0.1 -4.6 -0.7 0.4 -10.0 -8.7 -2.1 9.2
2007
 +0.88 -3.10 0.4 0.5 0.7 1.3 0.7 -1.4 -1.9 1.0 1.4 1.2 -2.6 -0.5
2006
 +9.18 +6.49 1.3 0.9 -0.1 0.2 -1.2 -0.1 1.0 2.0 1.2 1.6 1.4 0.6
2005
 +5.23 +1.83 0.0 0.9 -1.8 0.4 2.0 0.9 0.6 0.9 -0.1 -1.2 1.7 1.0
2004
 +8.41 +4.90 1.5 0.6 0.6 -2.6 -0.7 0.9 0.2 2.0 1.4 1.1 0.9 2.3
2003
 +21.64 +19.21 1.5 1.2 1.4 4.2 3.3 1.2 -1.3 1.8 1.8 1.6 0.9 2.3
2002
 +1.03 -1.41 0.6 0.6 0.8 0.1 -0.5 -3.0 -3.3 2.9 -2.5 1.6 3.2 0.9
2001
 +8.71 +7.00 3.0 -1.2 -0.9 1.4 1.2 0.3 1.1 0.7 -3.2 2.5 3.0 0.7
2000
 +3.43 -0.00 -1.5 1.6 2.0 -2.0 -1.7 3.5 0.7 2.9 -1.0 -1.2 -2.0 2.1
1999
 +11.02 +8.12 0.4 -0.6 2.5 3.0 -2.1 1.5 -1.0 -0.4 0.5 2.0 1.6 3.3
1998
 +6.04 +4.36 0.9 2.2 2.0 0.5 -0.7 0.5 -0.1 -9.1 3.2 1.8 3.7 1.5
1997
 +16.36 +14.42 2.0 1.4 -1.8 2.1 3.3 2.2 3.6 -0.6 2.7 -2.5 1.5 1.7
1996
 +16.81 +12.99 2.3 -1.1 0.6 1.4 1.3 0.8 -0.4 1.8 3.4 1.5 4.2 0.1
1995
 +23.17 +20.13 1.6 1.7 0.2 3.1 4.1 1.4 1.1 1.4 2.0 0.4 2.1 2.1

* Note:
Portofolio Returns, up to December 2007, 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:

  • PFF - iShares Preferred and Income Securities ETF: simulated historical serie, up to December 2007
  • VTI - Vanguard Total Stock Market: simulated historical serie, up to December 2001
  • EMB - iShares JP Morgan USD Em Mkts Bd: simulated historical serie, up to December 2007
  • SHY - iShares 1-3 Year Treasury Bond: simulated historical serie, up to December 2002
  • HYG - iShares iBoxx $ High Yield Corporate Bond: simulated historical serie, up to December 2007
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