The Dynamic 60/40 Income Portfolio is a High Risk portfolio and can be implemented with 5 ETFs.
It's exposed for 60% on the Stock Market.
In the last 30 Years, the Dynamic 60/40 Income Portfolio obtained a 7.32% compound annual return, with a 8.95% standard deviation.
Asset Allocation and ETFs
The Dynamic 60/40 Income Portfolio has the following asset allocation:
The Dynamic 60/40 Income Portfolio can be implemented 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.
Portfolio returns are calculated in USD, assuming:
- No fees or capital gain taxes
- a rebalancing of the components at the beginning of each year (at every January 1st). How do returns change with different rebalancing strategies?
- the reinvestment of dividends
Chg (%) | Return (%) | Return (%) as of Jun 30, 2022 |
|||||||
---|---|---|---|---|---|---|---|---|---|
1 Day | Time ET(*) | Jul 2022 | 1M | 6M | 1Y | 5Y(*) | 10Y(*) | 30Y(*) | |
Dynamic 60/40 Income Portfolio | -0.75 | 0.22 | -5.55 | -14.74 | -9.55 | 4.32 | 5.83 | 7.32 | |
US Inflation Adjusted return | -5.55 | -18.06 | -15.92 | 0.69 | 3.29 | 4.73 | |||
Components | |||||||||
PFF iShares Preferred and Income Securities ETF |
-0.79 |
01:59PM Jul 05 2022 |
0.04 | -4.98 | -15.10 | -12.71 | 1.61 | 3.92 | 6.23 |
VTI Vanguard Total Stock Market |
-0.84 |
01:59PM Jul 05 2022 |
0.21 | -8.23 | -21.32 | -14.17 | 10.53 | 12.52 | 9.81 |
VNQ Vanguard Real Estate |
-1.65 |
01:59PM Jul 05 2022 |
0.12 | -7.46 | -20.54 | -8.02 | 5.69 | 7.49 | 9.57 |
SHY iShares 1-3 Year Treasury Bond |
0.01 |
01:59PM Jul 05 2022 |
0.31 | -0.59 | -2.99 | -3.55 | 0.78 | 0.65 | 3.26 |
HYG iShares iBoxx $ High Yield Corporate Bond |
-0.51 |
02:00PM Jul 05 2022 |
0.44 | -7.05 | -13.77 | -12.80 | 1.21 | 3.17 | 5.70 |
US Inflation is updated to May 2022. Waiting for updates, inflation of Jun 2022 is set to 0%. Current inflation (annualized) is 1Y: 7.57% , 5Y: 3.61% , 10Y: 2.46% , 30Y: 2.47%
Portfolio Dividends
In 2021, the Dynamic 60/40 Income Portfolio granted a 2.81% dividend yield. If you are interested in getting periodic income, please refer to the Dynamic 60/40 Income Portfolio: Dividend Yield page.
Historical Returns as of Jun 30, 2022
Historical returns and stats of Dynamic 60/40 Income Portfolio. Total Returns and Inflation Adjusted Returns are both mentioned.
Period | Return (%) as of Jun 2022 |
Return (%) Infl.Adj. |
Standard Deviation (%) |
Max Drawdown (%) |
Months Pos - Neg |
---|---|---|---|---|---|
1M
Jun 2022
|
-5.55
|
-5.55
|
-5.55
Jun 2022 - Jun 2022
|
0 - 1
|
|
3M
|
-10.11
|
-11.27
|
-10.11
Apr 2022 - Jun 2022
|
1 - 2
|
|
6M
|
-14.74
|
-18.06
|
-14.74
Jan 2022 - Jun 2022
|
2 - 4
|
|
YTD
|
-14.74
|
-18.06
|
-14.74
Jan 2022 - Jun 2022
|
2 - 4
|
|
1Y
|
-9.55
|
-15.92
|
10.60
|
-14.74
Jan 2022 - Jun 2022
|
6 - 6
50% pos
|
3Y(*)
|
3.39
|
-1.07
|
11.35
|
-14.74
Jan 2022 - Jun 2022
|
25 - 11
69% pos
|
5Y(*)
|
4.32
|
0.69
|
9.80
|
-14.74
Jan 2022 - Jun 2022
|
43 - 17
72% pos
|
10Y(*)
|
5.83
|
3.29
|
7.90
|
-14.74
Jan 2022 - Jun 2022
|
84 - 36
70% pos
|
15Y(*)
|
5.13
|
2.77
|
11.37
|
-40.69
Nov 2007 - Feb 2009
|
120 - 60
67% pos
|
20Y(*)
|
6.40
|
3.85
|
10.25
|
-41.44
Jun 2007 - Feb 2009
|
165 - 75
69% pos
|
25Y(*)
|
6.36
|
3.84
|
9.55
|
-41.44
Jun 2007 - Feb 2009
|
202 - 98
67% pos
|
30Y(*)
|
7.32
|
4.73
|
8.95
|
-41.44
Jun 2007 - Feb 2009
|
248 - 112
69% pos
|
MAX(*)
01 Jan 1992
|
7.40
|
4.81
|
8.89
|
-41.44
Jun 2007 - Feb 2009
|
252 - 114
69% pos
|
Returns and stats are calculated assuming a yearly rebalancing of the components weight. How do returns change with different rebalancing strategies?
Capital Growth as of Jun 30, 2022
The Inflation Adjusted Capital now would be 4002.99$, with a net total return of 300.30% (4.73% annualized).
The Inflation Adjusted Capital now would be 4189.00$, with a net total return of 318.90% (4.81% annualized).
Drawdowns
Drawdown period |
Recovery period |
Total |
||||
---|---|---|---|---|---|---|
Drawdown | Start | Bottom | #Months | End | #Months | #Months |
-41.44% | Jun 2007 | Feb 2009 | 21 | Sep 2010 | 19 | 40 |
-14.74% | Jan 2022 | Jun 2022 | 6 | in progress | 6 | |
-14.24% | Feb 2020 | Mar 2020 | 2 | Nov 2020 | 8 | 10 |
-10.41% | Jun 2011 | Sep 2011 | 4 | Jan 2012 | 4 | 8 |
-7.02% | Jul 1998 | Aug 1998 | 2 | Dec 1998 | 4 | 6 |
-6.80% | Feb 1994 | Nov 1994 | 10 | Apr 1995 | 5 | 15 |
-6.80% | Sep 2018 | Dec 2018 | 4 | Feb 2019 | 2 | 6 |
-6.19% | Apr 2002 | Oct 2002 | 7 | Apr 2003 | 6 | 13 |
-4.42% | Apr 2015 | Sep 2015 | 6 | Mar 2016 | 6 | 12 |
-4.29% | Apr 2004 | Apr 2004 | 1 | Sep 2004 | 5 | 6 |
-3.78% | May 2013 | Aug 2013 | 4 | Oct 2013 | 2 | 6 |
-3.60% | Sep 2000 | Nov 2000 | 3 | Jan 2001 | 2 | 5 |
-3.30% | Jul 1999 | Sep 1999 | 3 | Dec 1999 | 3 | 6 |
-3.29% | Sep 2001 | Sep 2001 | 1 | Nov 2001 | 2 | 3 |
-3.09% | May 2012 | May 2012 | 1 | Jun 2012 | 1 | 2 |
-2.92% | Aug 2016 | Nov 2016 | 4 | Feb 2017 | 3 | 7 |
-2.58% | Sep 2021 | Sep 2021 | 1 | Oct 2021 | 1 | 2 |
-2.49% | Jan 2018 | Feb 2018 | 2 | Jun 2018 | 4 | 6 |
-2.37% | Feb 2001 | Mar 2001 | 2 | May 2001 | 2 | 4 |
-2.32% | Sep 2014 | Sep 2014 | 1 | Oct 2014 | 1 | 2 |
Drawdown period |
Recovery period |
Total |
||||
---|---|---|---|---|---|---|
Drawdown | Start | Bottom | #Months | End | #Months | #Months |
-41.44% | Jun 2007 | Feb 2009 | 21 | Sep 2010 | 19 | 40 |
-14.74% | Jan 2022 | Jun 2022 | 6 | in progress | 6 | |
-14.24% | Feb 2020 | Mar 2020 | 2 | Nov 2020 | 8 | 10 |
-10.41% | Jun 2011 | Sep 2011 | 4 | Jan 2012 | 4 | 8 |
-7.02% | Jul 1998 | Aug 1998 | 2 | Dec 1998 | 4 | 6 |
-6.80% | Feb 1994 | Nov 1994 | 10 | Apr 1995 | 5 | 15 |
-6.80% | Sep 2018 | Dec 2018 | 4 | Feb 2019 | 2 | 6 |
-6.19% | Apr 2002 | Oct 2002 | 7 | Apr 2003 | 6 | 13 |
-4.42% | Apr 2015 | Sep 2015 | 6 | Mar 2016 | 6 | 12 |
-4.29% | Apr 2004 | Apr 2004 | 1 | Sep 2004 | 5 | 6 |
-3.78% | May 2013 | Aug 2013 | 4 | Oct 2013 | 2 | 6 |
-3.60% | Sep 2000 | Nov 2000 | 3 | Jan 2001 | 2 | 5 |
-3.30% | Jul 1999 | Sep 1999 | 3 | Dec 1999 | 3 | 6 |
-3.29% | Sep 2001 | Sep 2001 | 1 | Nov 2001 | 2 | 3 |
-3.09% | May 2012 | May 2012 | 1 | Jun 2012 | 1 | 2 |
-2.92% | Aug 2016 | Nov 2016 | 4 | Feb 2017 | 3 | 7 |
-2.58% | Sep 2021 | Sep 2021 | 1 | Oct 2021 | 1 | 2 |
-2.49% | Jan 2018 | Feb 2018 | 2 | Jun 2018 | 4 | 6 |
-2.37% | Feb 2001 | Mar 2001 | 2 | May 2001 | 2 | 4 |
-2.32% | Sep 2014 | Sep 2014 | 1 | Oct 2014 | 1 | 2 |
Rolling Returns ( more details)
Dynamic 60/40 Income Portfolio: annualized rolling and average returns
Rolling Period |
Return (*) | Negative Periods |
||
---|---|---|---|---|
Average (%) | Best (%) | Worst (%) | ||
1 Year |
8.27 |
57.27 Mar 2009 - Feb 2010 |
-36.55 Mar 2008 - Feb 2009 |
12.39% |
2 Years |
7.81 |
36.22 Mar 2009 - Feb 2011 |
-22.81 Mar 2007 - Feb 2009 |
5.83% |
3 Years |
7.68 |
24.89 Mar 2009 - Feb 2012 |
-12.45 Mar 2006 - Feb 2009 |
6.65% |
5 Years |
7.58 |
18.49 Mar 2009 - Feb 2014 |
-4.51 Mar 2004 - Feb 2009 |
1.63% |
7 Years |
7.37 |
13.85 Mar 2009 - Feb 2016 |
-0.10 Mar 2002 - Feb 2009 |
0.35% |
10 Years |
7.28 |
11.81 Mar 2009 - Feb 2019 |
1.60 Mar 1999 - Feb 2009 |
0.00% |
15 Years |
6.96 |
9.93 Feb 1992 - Jan 2007 |
4.43 Mar 1994 - Feb 2009 |
0.00% |
20 Years |
7.25 |
8.51 Dec 1994 - Nov 2014 |
5.95 Apr 2000 - Mar 2020 |
0.00% |
If you need a deeper detail about rolling returns, please refer to the Dynamic 60/40 Income Portfolio: Rolling Returns page.
Seasonality
Dynamic 60/40 Income Portfolio: in which months is it better to invest?
For further information about the seasonality, check the Asset Class Seasonality page.
Monthly Average Return (%) and Gain Frequency | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Return (%) | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
Average Win % |
0.64 74% |
0.08 71% |
0.71 74% |
1.32 71% |
0.61 68% |
0.29 68% |
1.10 70% |
0.43 70% |
0.00 53% |
0.31 57% |
0.53 63% |
1.55 87% |
Best Year |
6.2 2019 |
2.9 2010 |
6.2 2009 |
13.5 2009 |
5.9 2009 |
3.3 2012 |
7.5 2009 |
2.7 2004 |
4.5 2009 |
7.8 2011 |
5.8 2020 |
8.3 2008 |
Worst Year |
-7.7 2009 |
-12.7 2009 |
-10.6 2020 |
-4.8 2022 |
-4.4 2010 |
-6.4 2008 |
-3.2 2007 |
-5.4 1998 |
-8.5 2008 |
-11.8 2008 |
-8.0 2008 |
-4.1 2018 |
Monthly/Yearly Returns
Dynamic 60/40 Income Portfolio monthly and yearly returns: how is the distribution of the returns recorded so far?
Yearly Return(%) |
Monthly Return(%) |
|||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Year | Total | Infl.Adj | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
2022 |
-14.74 | -18.06 | -4.5 | -2.0 | 1.3 | -4.8 | 0.0 | -5.5 | ||||||
2021 |
+15.27 | +7.63 | -0.5 | 1.1 | 2.6 | 3.1 | 0.4 | 1.6 | 1.5 | 1.3 | -2.6 | 3.2 | -1.4 | 4.1 |
2020 |
+6.26 | +4.92 | 0.6 | -4.1 | -10.6 | 6.9 | 2.3 | 0.6 | 3.8 | 1.9 | -1.5 | -0.9 | 5.8 | 2.5 |
2019 |
+18.59 | +15.96 | 6.2 | 1.2 | 1.8 | 1.1 | -1.5 | 2.7 | 1.0 | 0.8 | 1.0 | 0.8 | 0.5 | 1.5 |
2018 |
-3.28 | -5.10 | -0.1 | -2.4 | 0.4 | 0.2 | 1.5 | 1.3 | 1.2 | 1.7 | -0.7 | -3.0 | 0.9 | -4.1 |
2017 |
+8.11 | +5.86 | 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 | +5.24 | -2.2 | 0.3 | 4.4 | 0.4 | 1.1 | 2.2 | 2.2 | -0.4 | -0.3 | -2.0 | -0.2 | 1.8 |
2015 |
+0.49 | -0.15 | 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 | +11.15 | 0.9 | 2.9 | 0.5 | 1.2 | 1.4 | 1.0 | -1.0 | 2.3 | -2.3 | 3.1 | 1.0 | 0.2 |
2013 |
+8.15 | +6.54 | 2.2 | 0.8 | 1.8 | 2.4 | -1.4 | -1.5 | 1.9 | -2.8 | 1.9 | 2.5 | -0.2 | 0.5 |
2012 |
+12.84 | +10.89 | 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 | +0.09 | 1.6 | 2.3 | -0.1 | 2.5 | 0.3 | -1.3 | -0.4 | -3.2 | -5.8 | 7.8 | -2.0 | 2.1 |
2010 |
+14.75 | +13.13 | -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 | +21.88 | -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 | -21.76 | 0.5 | -1.3 | 0.1 | 4.0 | 0.1 | -6.4 | -0.2 | 0.7 | -8.5 | -11.8 | -8.0 | 8.3 |
2007 |
-3.54 | -7.35 | 2.4 | -0.4 | 0.0 | 1.1 | 0.6 | -2.8 | -3.2 | 2.1 | 1.5 | 1.3 | -4.3 | -1.6 |
2006 |
+14.28 | +11.47 | 2.6 | 0.9 | 1.3 | -0.6 | -1.3 | 0.9 | 1.2 | 2.3 | 1.5 | 2.6 | 2.2 | 0.0 |
2005 |
+5.27 | +1.87 | -1.9 | 1.3 | -1.5 | 1.1 | 2.1 | 1.4 | 2.1 | -0.5 | -0.2 | -1.4 | 2.2 | 0.5 |
2004 |
+12.11 | +8.49 | 2.1 | 1.1 | 1.2 | -4.3 | 0.8 | 1.1 | -0.2 | 2.7 | 1.0 | 1.9 | 1.6 | 2.7 |
2003 |
+22.26 | +19.82 | 0.5 | 0.7 | 1.0 | 3.7 | 3.5 | 1.7 | 0.6 | 1.3 | 1.7 | 1.8 | 1.4 | 2.3 |
2002 |
-0.78 | -3.18 | 0.0 | 0.0 | 2.0 | -0.1 | 0.0 | -0.9 | -3.1 | 1.3 | -2.4 | -1.2 | 3.4 | 0.2 |
2001 |
+5.55 | +3.88 | 2.2 | -1.4 | -0.9 | 1.8 | 1.1 | 0.9 | 0.5 | 0.4 | -3.3 | 0.9 | 3.0 | 0.5 |
2000 |
+5.79 | +2.27 | -0.9 | 0.1 | 2.2 | -0.2 | -1.1 | 3.1 | 2.2 | 1.2 | -0.1 | -1.8 | -1.7 | 2.9 |
1999 |
+4.89 | +2.16 | 0.6 | -1.2 | 1.1 | 3.1 | -0.4 | 0.5 | -1.5 | -0.6 | -1.3 | 0.9 | 0.7 | 2.9 |
1998 |
+5.13 | +3.47 | 0.6 | 1.4 | 1.9 | -0.2 | -0.2 | 1.2 | -1.7 | -5.4 | 2.9 | 0.7 | 2.6 | 1.4 |
1997 |
+16.74 | +14.80 | 1.4 | 0.7 | -0.9 | 0.7 | 3.0 | 2.6 | 3.4 | -0.8 | 3.8 | -0.9 | 1.3 | 1.5 |
1996 |
+16.21 | +12.41 | 1.1 | 0.4 | 0.3 | 0.5 | 1.5 | 0.5 | -0.8 | 1.8 | 2.3 | 1.6 | 3.8 | 2.0 |
1995 |
+20.42 | +17.45 | 0.9 | 2.6 | 1.0 | 1.6 | 3.5 | 1.5 | 1.4 | 1.1 | 1.7 | -0.1 | 1.8 | 1.9 |
1994 |
-3.20 | -5.65 | 1.8 | -0.8 | -3.0 | -0.7 | -0.1 | -0.8 | 1.1 | 1.5 | -1.4 | -0.6 | -2.2 | 2.0 |
1993 |
+14.00 | +10.88 | 2.7 | 2.6 | 2.9 | -0.8 | 0.5 | 1.7 | 0.8 | 1.9 | 1.4 | 0.7 | -1.8 | 0.7 |
1992 |
+13.92 | +10.63 | 2.3 | 1.0 | -0.4 | 0.9 | 2.3 | -0.1 | 3.0 | 0.6 | 1.2 | -0.5 | 1.6 | 1.4 |
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
- VNQ - Vanguard Real Estate: simulated historical serie, up to December 2004
- 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
Portfolio efficiency
Is the Dynamic 60/40 Income Portfolio actually efficient, compared to other Lazy Portfolios?
Overall Ratings
The Dynamic 60/40 Income Portfolio is classified as High Risk.
Less than 25%
25% - 49.99%
50% - 74.99%
At least 75%
High Risk Portfolios |
All Portfolios |
||
---|---|---|---|
25 Years Ann. Return (Inflation Adjusted) |
+6.36%
(+3.84%) |
Poor : 1 / 5
|
Average : 2.4 / 5
|
Standard Deviation over 25 Years |
9.55% |
Good : 3.4 / 5
|
Good : 3.4 / 5
|
Maximum Drawdown over 25 Years |
-41.44% |
Poor : 1 / 5
|
Average : 2.4 / 5
|
Easy to manage | 5 ETFs |
Average : 3 / 5
|
Average : 3 / 5
|
Rating assigned considering all the High Risk Portfolios | Rating assigned considering all the Portfolios in the database |
Best Classic Portfolios, with High Risk
30 Years Stats (%) |
% Allocation |
|||||||
---|---|---|---|---|---|---|---|---|
Portfolio | Jul 2022 | Return▾ | Drawdown | Stocks | Bonds | Comm | ||
Simple Path to Wealth JL Collins |
+0.42 | +8.84 | -38.53 | 75 | 25 | 0 | ||
Yale Endowment David Swensen |
+0.17 | +8.66 | -39.48 | 70 | 30 | 0 | ||
Late Sixties and Beyond Burton Malkiel |
-0.38 | +8.59 | -41.80 | 71 | 29 | 0 | ||
Talmud Portfolio Roger Gibson |
+0.46 | +8.56 | -40.17 | 66.7 | 33.3 | 0 | ||
Lazy Portfolio David Swensen |
-0.06 | +8.28 | -40.89 | 70 | 30 | 0 |
Last update: Jul 05 2022, 02:00PM Eastern Time.