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.

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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