Last Update: 31 July 2020
The Dynamic 60/40 Income Portfolio is exposed for 60% on the Stock Market.
It's a High Risk portfolio and it can be replicated with 5 ETFs.
In the last 10 years, the portfolio obtained a 7.13% compound annual return, with a 7.89% standard deviation.
In 2019, the portfolio granted a 4.05% dividend yield. If you are interested in getting periodic income, please refer to the Dynamic 60/40 Income Portfolio: Dividend Yield page.
Asset Allocation and ETFs
The Dynamic 60/40 Income Portfolio has the following asset allocation:
The Dynamic 60/40 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 % | VNQ | Vanguard Real Estate | Real Estate, U.S. | |
| 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 |
Portfolio and ETF Returns
The Dynamic 60/40 Income Portfolio guaranteed the following returns.
| 1M | 3M | 6M | 1Y | 3Y(*) | 5Y(*) | 10Y(*) | |
|---|---|---|---|---|---|---|---|
| Dynamic 60/40 Income Portfolio | +3.84 | +6.88 | -2.00 | +3.21 | +4.90 | +5.39 | +7.13 |
| Components | |||||||
| PFF - iShares Preferred and Income Securities ETF | +4.95 | +5.95 | -2.82 | +1.90 | +2.79 | +3.88 | +5.26 |
| VTI - Vanguard Total Stock Market | +5.74 | +14.00 | +2.15 | +10.85 | +11.37 | +10.87 | +13.59 |
| VNQ - Vanguard Real Estate | +3.64 | +7.98 | -11.85 | -5.11 | +2.98 | +4.94 | +9.06 |
| SHY - iShares 1-3 Year Treasury Bond | +0.09 | +0.04 | +2.45 | +4.14 | +2.52 | +1.73 | +1.19 |
| HYG - iShares iBoxx $ High Yield Corporate Bond | +5.06 | +7.53 | +0.17 | +3.33 | +3.90 | +4.79 | +5.66 |
- 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 60/40 Income Portfolio: Dividend Yield page.
Historical Returns
Dynamic 60/40 Income Portfolio - Historical returns and stats.
| Period | Returns Jul 2020 |
Standard Deviation * |
Max Drawdown |
Months Pos - Neg |
|---|---|---|---|---|
|
1M
|
+3.84%
|
0.00%
|
1 - 0 | |
|
3M
|
+6.88%
|
0.00%
|
3 - 0 | |
|
6M
|
-2.00%
|
-14.25%
Feb 2020 - Mar 2020
|
4 - 2 | |
|
YTD
|
-1.45%
|
-14.25%
Feb 2020 - Mar 2020
|
5 - 2 | |
|
1Y
|
+3.21%
|
14.19%
|
-14.25%
Feb 2020 - Mar 2020
|
10 - 2 |
|
3Y
|
+4.90%
annualized
|
9.91%
|
-14.25%
Feb 2020 - Mar 2020
|
28 - 8 |
|
5Y
|
+5.39%
annualized
|
8.53%
|
-14.25%
Feb 2020 - Mar 2020
|
42 - 18 |
|
10Y
|
+7.13%
annualized
|
7.89%
|
-14.25%
Feb 2020 - Mar 2020
|
84 - 36 |
|
MAX
01 Jan 2008
|
+6.03%
annualized
|
11.65%
|
-39.09%
Jun 2008 - Feb 2009
|
103 - 48 |
* Annualized St.Dev. of monthly returns
Best High Risk Porftolios, ordered by 10Y annualized return.
| Portfolio | 10Y Return ▾ | Stocks | Bonds | Comm. | ||
|---|---|---|---|---|---|---|
| Simple Path to Wealth JL Collins |
+11.25% | 75 | 25 | 0 | Compare | |
| Stocks/Bonds 60/40 |
+9.81% | 60 | 40 | 0 | Compare | |
| Yale Endowment David Swensen |
+9.06% | 70 | 30 | 0 | Compare | |
| Talmud Portfolio Roger Gibson |
+9.03% | 66.67 | 33.33 | 0 | Compare | |
| Edge Select Moderately Aggressive Merrill Lynch |
+8.85% | 69 | 31 | 0 | Compare |
Capital Growth
Drawdowns
Rolling Returns
Dynamic 60/40 Income Portfolio: annualized rolling and average returns
| Return (*) | Negative Periods |
|||
|---|---|---|---|---|
| Rolling Period | Average | Best | Worst | |
| 1 Year |
+7.53% |
+57.27% Mar 2009 - Feb 2010 |
-36.55% Mar 2008 - Feb 2009 |
10.71% |
| 2 Years |
+8.14% |
+36.22% Mar 2009 - Feb 2011 |
-2.16% Feb 2008 - Jan 2010 |
3.13% |
| 3 Years |
+8.01% |
+24.89% Mar 2009 - Feb 2012 |
+1.32% Apr 2017 - Mar 2020 |
0.00% |
| 5 Years |
+7.85% |
+18.49% Mar 2009 - Feb 2014 |
+2.44% Apr 2015 - Mar 2020 |
0.00% |
| 7 Years |
+7.85% |
+13.85% Mar 2009 - Feb 2016 |
+4.17% Apr 2013 - Mar 2020 |
0.00% |
| 10 Years |
+7.97% |
+11.81% Mar 2009 - Feb 2019 |
+5.78% May 2008 - Apr 2018 |
0.00% |
* Annualized rolling and average returns over full calendar month periods
Yearly Returns - Monthly Returns Heatmap
| Months | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | Return | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
| 2020 |
-1.45% | 0.6 | -4.1 | -10.6 | 6.9 | 2.3 | 0.6 | 3.8 | |||||
| 2019 |
+18.59% | 6.3 | 1.3 | 1.8 | 1.1 | -1.6 | 2.7 | 1.0 | 0.8 | 1.0 | 0.8 | 0.5 | 1.5 |
| 2018 |
-3.28% | -0.1 | -2.4 | 0.4 | 0.2 | 1.5 | 1.3 | 1.2 | 1.7 | -0.8 | -3.0 | 0.9 | -4.1 |
| 2017 |
+8.11% | 1.0 | 2.2 | -0.4 | 0.7 | 0.4 | 0.8 | 1.0 | 0.0 | 0.5 | 0.2 | 1.2 | 0.2 |
| 2016 |
+7.39% | -2.2 | 0.3 | 4.5 | 0.5 | 1.1 | 2.2 | 2.2 | -0.4 | -0.3 | -2.0 | -0.2 | 1.8 |
| 2015 |
+0.49% | 1.4 | 0.9 | 0.0 | -0.9 | 0.3 | -1.8 | 1.6 | -2.9 | -0.7 | 3.7 | -0.4 | -0.5 |
| 2014 |
+11.87% | 0.9 | 2.9 | 0.5 | 1.2 | 1.5 | 1.0 | -1.0 | 2.3 | -2.3 | 3.1 | 1.0 | 0.2 |
| 2013 |
+8.15% | 2.2 | 0.8 | 1.8 | 2.4 | -1.4 | -1.5 | 1.9 | -2.8 | 1.9 | 2.6 | -0.3 | 0.5 |
| 2012 |
+12.84% | 4.0 | 1.6 | 1.5 | 0.8 | -3.1 | 3.3 | 1.2 | 1.1 | 0.4 | -0.2 | 0.4 | 1.4 |
| 2011 |
+3.16% | 1.6 | 2.3 | -0.1 | 2.5 | 0.3 | -1.3 | -0.4 | -3.3 | -5.8 | 7.8 | -2.0 | 2.1 |
| 2010 |
+14.75% | -1.8 | 2.9 | 4.0 | 2.4 | -4.4 | -1.6 | 5.8 | -0.8 | 3.5 | 2.2 | -0.7 | 2.9 |
| 2009 |
+25.31% | -7.7 | -12.7 | 6.2 | 13.5 | 5.9 | 0.8 | 7.5 | 2.5 | 4.5 | -2.3 | 3.2 | 4.0 |
| 2008 |
-21.78% | 0.5 | -1.3 | 0.1 | 4.0 | 0.1 | -6.4 | -0.2 | 0.7 | -8.5 | -11.8 | -8.0 | 8.3 |