Dynamic 40/60 Income Portfolio: ETF allocation and returns

Data Source: from January 1995 to September 2021

Last Update: 30 September 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 7.26% compound annual return, with a 6.44% standard deviation.

In the last 25 years, a 7.22% compound annual return, with a 8.07% standard deviation.

In 2020, the portfolio granted a 3.24% 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:

        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 %	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

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: 30 September 2021

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	1M	3M	6M	1Y	*3Y^()**	*5Y^()**	*10Y^()**	*20Y^()**	*25Y^()**
Dynamic 40/60 Income Portfolio	-1.83	-0.20	+3.45	+10.93	+7.36	+6.46	+7.26	+6.80	+7.22
*Components*
PFF iShares Preferred and Income Securities ETF	-1.12	-0.20	+3.48	+11.43	+6.83	+5.10	+6.77	+5.69	+6.32
VTI Vanguard Total Stock Market	-4.46	-0.03	+8.10	+32.16	+16.05	+16.88	+16.60	+10.07	+9.79
SHY iShares 1-3 Year Treasury Bond	-0.10	+0.03	-0.02	-0.10	+2.53	+1.51	+1.03	+2.20	+3.12
EMB iShares JP Morgan USD Em Mkts Bd	-2.64	-1.22	+3.01	+3.20	+5.43	+3.36	+5.14	+8.56	+9.45
HYG iShares iBoxx $ High Yield Corporate Bond	-0.37	+0.34	+2.36	+8.92	+5.46	+5.16	+6.23	+5.97	+5.65

(*) 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

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

ETF Investing: The Beginners Guide to Create Passive Income and Achieve ...

Get Good with Money: Ten Simple Steps to Becoming Financially Whole

Dare to Lead: Brave Work. Tough Conversations. Whole Hearts.

Historical Returns

Dynamic 40/60 Income Portfolio - Historical returns and stats.

DYNAMIC 40/60 INCOME PORTFOLIO

Last Update: 30 September 2021

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Period	Returns Sep 2021	Standard Deviation *	Max Drawdown	Months Pos - Neg
1M	-1.83%		-1.83% Sep 2021 - Sep 2021	0 - 1
3M	-0.20%		-1.83% Sep 2021 - Sep 2021	2 - 1
6M	+3.45%		-1.83% Sep 2021 - Sep 2021	5 - 1
YTD	+3.88%		-1.83% Sep 2021 - Sep 2021	6 - 3
1Y	+10.93%	5.72%	-1.83% Sep 2021 - Sep 2021	8 - 4
3Y	+7.36% annualized	9.31%	-12.42% Feb 2020 - Mar 2020	25 - 11
5Y	+6.46% annualized	7.41%	-12.42% Feb 2020 - Mar 2020	44 - 16
10Y	+7.26% annualized	6.44%	-12.42% Feb 2020 - Mar 2020	88 - 32
20Y	+6.80% annualized	8.18%	-29.85% Nov 2007 - Feb 2009	172 - 68
25Y	+7.22% annualized	8.07%	-29.85% Nov 2007 - Feb 2009	213 - 87
MAX 01 Jan 1995	+7.97% annualized	7.90%	-29.85% Nov 2007 - Feb 2009	232 - 89

* Annualized St.Dev. of monthly returns

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	+8.32%	-27.03%	50	50	0	Compare
All Weather Portfolio Ray Dalio	+7.92%	-12.19%	30	55	15	Compare
Robo Advisor 50 Betterment	+7.70%	-30.72%	49.9	50.1	0	Compare
Stocks/Bonds 40/60	+7.27%	-19.17%	40	60	0	Compare
Dynamic 40/60 Income	+7.22%	-29.85%	40	60	0

See all portfolios

Capital Growth

Time Range:

Drawdowns

Time Range:

Worst drawdowns since October 1996 - Chart and Data

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	Drawdown period			Recovery period		Total
Drawdown	Start	Bottom	#Months	End	#Months	#Months
-29.85%	Nov 2007	Feb 2009	16	Dec 2009	10	26
-12.42%	Feb 2020	Mar 2020	2	Jul 2020	4	6
-9.37%	May 1998	Aug 1998	4	Dec 1998	4	8
-7.19%	Jun 2011	Sep 2011	4	Jan 2012	4	8
-6.74%	May 2002	Jul 2002	3	Jan 2003	6	9
-5.09%	Oct 2018	Dec 2018	3	Feb 2019	2	5
-4.12%	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
-3.22%	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
-1.94%	Feb 2018	Apr 2018	3	Jul 2018	3	6

Worst drawdowns since January 1995 - Chart and Data

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	Drawdown period			Recovery period		Total
Drawdown	Start	Bottom	#Months	End	#Months	#Months
-29.85%	Nov 2007	Feb 2009	16	Dec 2009	10	26
-12.42%	Feb 2020	Mar 2020	2	Jul 2020	4	6
-9.37%	May 1998	Aug 1998	4	Dec 1998	4	8
-7.19%	Jun 2011	Sep 2011	4	Jan 2012	4	8
-6.74%	May 2002	Jul 2002	3	Jan 2003	6	9
-5.09%	Oct 2018	Dec 2018	3	Feb 2019	2	5
-4.12%	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
-3.22%	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
-1.94%	Feb 2018	Apr 2018	3	Jul 2018	3	6

Rolling Returns ( more details)

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

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	*Return ()**			Negative Periods
Rolling Period	Average	Best	Worst	Negative Periods
1 Year	+8.08%	+45.82% Mar 2009 - Feb 2010	-27.71% Mar 2008 - Feb 2009	9.68%
2 Years	+7.60%	+27.87% Mar 2009 - Feb 2011	-14.95% Mar 2007 - Feb 2009	5.03%
3 Years	+7.29%	+20.25% Mar 2009 - Feb 2012	-7.96% Mar 2006 - Feb 2009	3.50%
5 Years	+7.07%	+15.13% Mar 2009 - Feb 2014	-2.29% Mar 2004 - Feb 2009	1.15%
7 Years	+6.97%	+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	+6.79%	+8.87% Apr 1995 - Mar 2010	+5.00% Apr 2005 - Mar 2020	0.00%
20 Years	+6.95%	+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 and Yearly/Monthly Returns

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.

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	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%	0.43 69%	0.90 69%	1.41 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	6.0 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 - Sep 2021

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

Monthly Returns of Dynamic 40/60 Income Portfolio

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		Months
Year	Return	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2021	+3.88%	-0.8	-0.2	1.5	1.9	0.5	1.3	0.7	1.0	-1.8
2020	+8.28%	0.6	-2.9	-9.8	6.1	3.2	0.7	3.9	1.9	-1.4	-0.5	4.8	2.4
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
2007	+0.88%	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%	1.3	1.0	-0.1	0.2	-1.2	-0.1	1.0	2.0	1.2	1.6	1.4	0.6
2005	+5.23%	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%	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%	1.5	1.2	1.4	4.3	3.3	1.2	-1.3	1.8	1.8	1.6	0.9	2.3
2002	+1.03%	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%	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%	-1.5	1.6	2.1	-2.0	-1.7	3.5	0.7	2.9	-1.0	-1.2	-2.0	2.1
1999	+11.02%	0.4	-0.6	2.5	3.0	-2.2	1.5	-1.0	-0.4	0.5	2.0	1.6	3.3
1998	+6.04%	0.9	2.2	2.0	0.5	-0.7	0.5	-0.1	-9.1	3.2	1.9	3.7	1.5
1997	+16.36%	2.0	1.4	-1.8	2.1	3.3	2.2	3.6	-0.7	2.7	-2.5	1.5	1.7
1996	+16.81%	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%	1.6	1.7	0.3	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
SHY - iShares 1-3 Year Treasury Bond: simulated historical serie, up to December 2002
EMB - iShares JP Morgan USD Em Mkts Bd: simulated historical serie, up to December 2007
HYG - iShares iBoxx $ High Yield Corporate Bond: simulated historical serie, up to December 2007