Last Update: 31 December 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 6.54% compound annual return, with a 6.63% 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:
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 | +2.35 | +6.79 | +11.51 | +8.28 | +6.71 | +7.37 | +6.54 |
Components | |||||||
PFF - iShares Preferred and Income Securities ETF | +2.63 | +7.14 | +14.29 | +7.44 | +5.90 | +5.40 | +5.91 |
VTI - Vanguard Total Stock Market | +4.68 | +14.75 | +25.36 | +21.03 | +14.45 | +15.44 | +13.77 |
SHY - iShares 1-3 Year Treasury Bond | +0.04 | +0.02 | +0.09 | +3.03 | +2.62 | +1.79 | +1.17 |
EMB - iShares JP Morgan USD Em Mkts Bd | +2.15 | +5.98 | +8.55 | +5.42 | +4.79 | +6.76 | +5.60 |
HYG - iShares iBoxx $ High Yield Corporate Bond | +1.96 | +5.80 | +10.09 | +4.48 | +5.31 | +7.03 | +5.54 |
- 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 Dec 2020 |
Standard Deviation * |
Max Drawdown |
Months Pos - Neg |
---|---|---|---|---|
1M
|
+2.35%
|
0.00%
|
1 - 0 | |
3M
|
+6.79%
|
-0.47%
Oct 2020 - Oct 2020
|
2 - 1 | |
6M
|
+11.51%
|
-1.85%
Sep 2020 - Oct 2020
|
4 - 2 | |
YTD
|
+8.28%
|
13.98%
|
-12.42%
Feb 2020 - Mar 2020
|
8 - 4 |
1Y
|
+8.28%
|
13.98%
|
-12.42%
Feb 2020 - Mar 2020
|
8 - 4 |
3Y
|
+6.71%
annualized
|
9.22%
|
-12.42%
Feb 2020 - Mar 2020
|
25 - 11 |
5Y
|
+7.37%
annualized
|
7.43%
|
-12.42%
Feb 2020 - Mar 2020
|
46 - 14 |
10Y
|
+6.54%
annualized
|
6.63%
|
-12.42%
Feb 2020 - Mar 2020
|
87 - 33 |
MAX
01 Jan 2008
|
+6.20%
annualized
|
9.47%
|
-29.06%
Jun 2008 - Feb 2009
|
109 - 47 |
* 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 |
+8.93% | 50 | 50 | 0 | Compare | |
Stocks/Bonds 40/60 |
+7.90% | 40 | 60 | 0 | Compare | |
All Weather Portfolio Ray Dalio |
+7.77% | 30 | 55 | 15 | Compare | |
Robo Advisor 50 Betterment |
+6.98% | 49.9 | 50.1 | 0 | Compare | |
Edge Select Moderately Conservative Merrill Lynch |
+6.93% | 37 | 63 | 0 | Compare |
Capital Growth
Drawdowns
Rolling Returns (more details)
Dynamic 40/60 Income Portfolio: annualized rolling and average returns
Return (*) | Negative Periods |
|||
---|---|---|---|---|
Rolling Period | Average | Best | Worst | |
1 Year |
+6.80% |
+45.82% Mar 2009 - Feb 2010 |
-27.71% Mar 2008 - Feb 2009 |
12.41% |
2 Years |
+7.17% |
+27.87% Mar 2009 - Feb 2011 |
-0.13% Apr 2018 - Mar 2020 |
0.75% |
3 Years |
+6.94% |
+20.25% Mar 2009 - Feb 2012 |
+1.42% Apr 2017 - Mar 2020 |
0.00% |
5 Years |
+6.76% |
+15.13% Mar 2009 - Feb 2014 |
+2.67% Apr 2015 - Mar 2020 |
0.00% |
7 Years |
+6.69% |
+11.17% Mar 2009 - Feb 2016 |
+3.68% Apr 2013 - Mar 2020 |
0.00% |
10 Years |
+6.90% |
+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
Months | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Return (%) | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
Average | 0.4 | 0.0 | 0.4 | 2.2 | 0.3 | 0.2 | 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 |
69 | 69 | 69 | 92 | 69 | 69 | 77 | 69 | 62 | 62 | 54 | 77 |
Detail of Monthly Returns
Months | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Year | Return | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
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 |