Dynamic 40/60 Income Portfolio: ETF allocation and returns

Last Update: 30 June 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 6.54% compound annual return, with a 6.65% 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 %	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: 30 June 2021

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	1M	3M	6M	1Y	*3Y^()**	*5Y^()**	*10Y^()**
Dynamic 40/60 Income Portfolio	+1.27	+3.66	+4.09	+16.07	+8.31	+7.02	+6.54
*Components*
PFF - iShares Preferred and Income Securities ETF	+1.67	+3.68	+4.21	+19.11	+6.85	+5.21	+5.82
VTI - Vanguard Total Stock Market	+2.48	+8.13	+15.21	+44.42	+18.73	+17.90	+14.70
EMB - iShares JP Morgan USD Em Mkts Bd	+0.86	+4.28	-1.42	+7.01	+6.64	+4.25	+5.01
SHY - iShares 1-3 Year Treasury Bond	-0.17	-0.05	-0.14	-0.06	+2.57	+1.47	+1.08
HYG - iShares iBoxx $ High Yield Corporate Bond	+1.32	+2.01	+2.60	+12.95	+6.36	+6.00	+5.36

(*) 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.

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Historical Returns

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

DYNAMIC 40/60 INCOME PORTFOLIO

Last Update: 30 June 2021

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Period	Returns Jun 2021	Standard Deviation *	Max Drawdown	Months Pos - Neg
1M	+1.27%		0.00%	1 - 0
3M	+3.66%		0.00%	3 - 0
6M	+4.09%		-1.05% Jan 2021 - Feb 2021	4 - 2
YTD	+4.09%		-1.05% Jan 2021 - Feb 2021	4 - 2
1Y	+16.07%	6.23%	-1.85% Sep 2020 - Oct 2020	8 - 4
3Y	+8.31% annualized	9.21%	-12.42% Feb 2020 - Mar 2020	26 - 10
5Y	+7.02% annualized	7.35%	-12.42% Feb 2020 - Mar 2020	45 - 15
10Y	+6.54% annualized	6.65%	-12.42% Feb 2020 - Mar 2020	86 - 34
MAX 01 Jan 2008	+6.28% annualized	9.32%	-29.06% Jun 2008 - Feb 2009	113 - 49

* Annualized St.Dev. of monthly returns

Best Medium Risk Porftolios, ordered by 10Y annualized return.

Portfolio	10Y Return ▾	Stocks	Bonds	Comm.
Couch Potato Scott Burns	+9.18%	50	50	0	Compare
Stocks/Bonds 40/60	+8.00%	40	60	0	Compare
All Weather Portfolio Ray Dalio	+7.72%	30	55	15	Compare
Robo Advisor 50 Betterment	+7.20%	49.9	50.1	0	Compare
Edge Select Moderately Conservative Merrill Lynch	+6.97%	37	63	0	Compare

See all portfolios

Capital Growth

Time Range:

Drawdowns

Time Range:

Worst drawdowns since June 2011.

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	Drawdown period			Recovery period		Total
Drawdown	Start	Bottom	#Months	End	#Months	#Months
-12.42%	Feb 2020	Mar 2020	2	Jul 2020	4	6
-6.75%	Jul 2011	Sep 2011	3	Jan 2012	4	7
-5.09%	Oct 2018	Dec 2018	3	Feb 2019	2	5
-4.06%	Jun 2015	Sep 2015	4	Apr 2016	7	11
-3.06%	May 2013	Aug 2013	4	Oct 2013	2	6
-2.72%	May 2012	May 2012	1	Jun 2012	1	2
-1.95%	Oct 2016	Nov 2016	2	Jan 2017	2	4
-1.94%	Feb 2018	Apr 2018	3	Jul 2018	3	6
-1.85%	Sep 2020	Oct 2020	2	Nov 2020	1	3
-1.51%	May 2019	May 2019	1	Jun 2019	1	2
-1.44%	Sep 2014	Sep 2014	1	Nov 2014	2	3
-1.05%	Jul 2014	Jul 2014	1	Aug 2014	1	2
-1.05%	Jan 2021	Feb 2021	2	Mar 2021	1	3
-0.79%	Dec 2014	Dec 2014	1	Feb 2015	2	3
-0.31%	Mar 2015	Mar 2015	1	Apr 2015	1	2
-0.08%	Jan 2014	Jan 2014	1	Feb 2014	1	2

Worst drawdowns since December 2007.

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	Drawdown period			Recovery period		Total
Drawdown	Start	Bottom	#Months	End	#Months	#Months
-29.06%	Jun 2008	Feb 2009	9	Dec 2009	10	19
-12.42%	Feb 2020	Mar 2020	2	Jul 2020	4	6
-7.19%	Jun 2011	Sep 2011	4	Jan 2012	4	8
-5.09%	Oct 2018	Dec 2018	3	Feb 2019	2	5
-4.06%	Jun 2015	Sep 2015	4	Apr 2016	7	11
-3.72%	May 2010	May 2010	1	Jul 2010	2	3
-3.06%	May 2013	Aug 2013	4	Oct 2013	2	6
-2.72%	May 2012	May 2012	1	Jun 2012	1	2
-1.95%	Oct 2016	Nov 2016	2	Jan 2017	2	4
-1.94%	Feb 2018	Apr 2018	3	Jul 2018	3	6
-1.88%	Feb 2008	Mar 2008	2	Apr 2008	1	3
-1.85%	Sep 2020	Oct 2020	2	Nov 2020	1	3
-1.51%	May 2019	May 2019	1	Jun 2019	1	2
-1.44%	Sep 2014	Sep 2014	1	Nov 2014	2	3
-1.25%	Nov 2010	Nov 2010	1	Dec 2010	1	2
-1.05%	Jul 2014	Jul 2014	1	Aug 2014	1	2
-1.05%	Jan 2021	Feb 2021	2	Mar 2021	1	3
-0.83%	Jan 2010	Jan 2010	1	Feb 2010	1	2
-0.79%	Dec 2014	Dec 2014	1	Feb 2015	2	3
-0.31%	Mar 2015	Mar 2015	1	Apr 2015	1	2

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	+7.12%	+45.82% Mar 2009 - Feb 2010	-27.71% Mar 2008 - Feb 2009	11.92%
2 Years	+7.24%	+27.87% Mar 2009 - Feb 2011	-0.13% Apr 2018 - Mar 2020	0.72%
3 Years	+6.96%	+20.25% Mar 2009 - Feb 2012	+1.42% Apr 2017 - Mar 2020	0.00%
5 Years	+6.78%	+15.13% Mar 2009 - Feb 2014	+2.67% Apr 2015 - Mar 2020	0.00%
7 Years	+6.63%	+11.17% Mar 2009 - Feb 2016	+3.68% Apr 2013 - Mar 2020	0.00%
10 Years	+6.82%	+9.82% Mar 2009 - Feb 2019	+5.09% Apr 2010 - 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

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	Months
Return (%)	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
Average	0.3	0.0	0.4	2.1	0.3	0.3	1.6	0.2	-0.6	0.0	0.3	1.4
Best	4.8 2019	2.6 2014	6.4 2009	9.7 2009	5.9 2009	3.2 2019	6.1 2009	2.0 2014	4.2 2009	6.0 2011	4.8 2020	9.2 2008
Worst	-5.6 2009	-10.0 2009	-9.8 2020	-0.4 2018	-3.7 2010	-4.6 2008	-1.1 2014	-2.0 2011	-10.0 2008	-8.7 2008	-2.1 2008	-2.1 2018
Gain Frequency	64	64	71	93	71	71	77	69	62	62	54	77

Detail of Monthly Returns

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		Months
Year	Return	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2021	+4.09%	-0.8	-0.2	1.5	1.9	0.5	1.3
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