Data Source: from January 1994 to December 2021

Last Update: 31 December 2021

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 8.39% compound annual return, with a 7.47% standard deviation.

In the last 25 years, a 7.35% compound annual return, with a 9.36% standard deviation.

Asset Allocation and ETFs

The Dynamic 60/40 Income Portfolio has the following asset allocation:

60% Stocks
40% Fixed Income
0% Commodities

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
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 60/40 Income Portfolio guaranteed the following returns.

DYNAMIC 60/40 INCOME PORTFOLIO RETURNS (%)
Last Update: 31 December 2021
Swipe left to see all data
1M 3M 6M 1Y 3Y(*) 5Y(*) 10Y(*) 20Y(*) 25Y(*)
Dynamic 60/40 Income Portfolio +4.07 +5.91 +6.09 +15.27 +13.25 +8.72 +8.39 +7.31 +7.35
--- Inflation Adjusted return +3.58 +3.63 +2.60 +7.61 +9.39 +5.63 +6.14 +4.88 +4.95
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
VNQ
Vanguard Real Estate
+9.69 +15.03 +15.74 +40.52 +19.96 +11.22 +11.50 +10.89 +9.94
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 2.81% dividend yield. If you are interested in getting periodic income, please refer to the Dynamic 60/40 Income Portfolio: Dividend Yield page.

Historical Returns

Historical returns and stats of Dynamic 60/40 Income Portfolio. Total Returns and Inflation Adjusted Returns are both mentioned.

DYNAMIC 60/40 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
+4.07%
+3.58%
0.00%
1 - 0
3M
+5.91%
+3.63%
-1.43%
Nov 2021 - Nov 2021
2 - 1
6M
+6.09%
+2.60%
-2.58%
Sep 2021 - Sep 2021
4 - 2
YTD
+15.27%
+7.61%
6.55%
-2.58%
Sep 2021 - Sep 2021
9 - 3
75% pos
1Y
+15.27%
+7.61%
6.55%
-2.58%
Sep 2021 - Sep 2021
9 - 3
75% pos
3Y
+13.25%
annualized
+9.39%
annualized
10.37%
-14.24%
Feb 2020 - Mar 2020
28 - 8
78% pos
5Y
+8.72%
annualized
+5.63%
annualized
8.77%
-14.24%
Feb 2020 - Mar 2020
46 - 14
77% pos
10Y
+8.39%
annualized
+6.14%
annualized
7.47%
-14.24%
Feb 2020 - Mar 2020
87 - 33
73% pos
20Y
+7.31%
annualized
+4.88%
annualized
10.02%
-41.44%
Jun 2007 - Feb 2009
166 - 74
69% pos
25Y
+7.35%
annualized
+4.95%
annualized
9.36%
-41.44%
Jun 2007 - Feb 2009
205 - 95
68% pos
MAX
01 Jan 1994
+7.70%
annualized
+5.23%
annualized
9.00%
-41.44%
Jun 2007 - Feb 2009
231 - 105
69% pos
(*)Annualized St.Dev. of monthly returns

Portfolio efficiency

Is the Dynamic 60/40 Income Portfolio actually efficient, compared to other Lazy Portfolios?

Best Classic Portfolios, with High Risk, ordered by 25 Years annualized return.

25 Years Stats
% Allocation
Portfolio Return Drawdown Stocks Bonds Comm.
Simple Path to Wealth
JL Collins
+8.96% -38.54% 75 25 0 Compare
Yale Endowment
David Swensen
+8.94% -39.46% 70 30 0 Compare
Talmud Portfolio
Roger Gibson
+8.80% -40.18% 66.67 33.33 0 Compare
Late Sixties and Beyond
Burton Malkiel
+8.63% -41.80% 71 29 0 Compare
Lazy Portfolio
David Swensen
+8.41% -40.88% 70 30 0 Compare

See all portfolios

Our overall ratings, assigned to the Dynamic 60/40 Income Portfolio. The portfolio is classified as High 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%
High Risk
Portfolios
All
Portfolios
25 Years Ann. Return
(Inflation Adjusted)
+7.35%
(+4.95%)
Average : 2.2 / 5
Good : 3.2 / 5
Standard Deviation
over 25 Years
9.36%
Good : 3.6 / 5
Good : 3.5 / 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

Capital Growth

Time Range:

An investment of 1000$, since January 1997, now would be worth 5890.71$, with a total return of 489.07% (7.35% annualized).

The Inflation Adjusted Capital now would be 3344.89$, with a net total return of 234.49% (4.95% 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
-41.44% Jun 2007 Feb 2009 21 Sep 2010 19 40
-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% 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
-2.10% Jan 2005 Mar 2005 3 May 2005 2 5
-2.03% Aug 2005 Oct 2005 3 Nov 2005 1 4

Rolling Returns ( more details)

Dynamic 60/40 Income Portfolio: annualized rolling and average returns

Swipe left to see all data
Return (*) Negative
Periods
Rolling Period Average Best Worst
1 Year
+8.28% +57.27%
Mar 2009 - Feb 2010
-36.55%
Mar 2008 - Feb 2009
11.38%
2 Years
+7.82% +36.22%
Mar 2009 - Feb 2011
-22.81%
Mar 2007 - Feb 2009
6.39%
3 Years
+7.62% +24.89%
Mar 2009 - Feb 2012
-12.45%
Mar 2006 - Feb 2009
7.31%
5 Years
+7.26% +18.49%
Mar 2009 - Feb 2014
-4.51%
Mar 2004 - Feb 2009
1.81%
7 Years
+7.14% +13.85%
Mar 2009 - Feb 2016
-0.10%
Mar 2002 - Feb 2009
0.40%
10 Years
+7.15% +11.81%
Mar 2009 - Feb 2019
+1.60%
Mar 1999 - Feb 2009
0.00%
15 Years
+6.76% +7.95%
May 1995 - Apr 2010
+4.43%
Mar 1994 - Feb 2009
0.00%
20 Years
+7.13% +8.51%
Dec 1994 - Nov 2014
+5.95%
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 60/40 Income Portfolio: Rolling Returns page.

Seasonality

Dynamic 60/40 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 %
0.69
75%
0.04
71%
0.65
75%
1.63
75%
0.58
64%
0.46
71%
1.04
68%
0.37
68%
-0.10
50%
0.33
57%
0.57
64%
1.59
86%
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
-4.3
2004
-4.4
2010
-6.4
2008
-3.2
2007
-5.4
1998
-8.5
2008
-11.8
2008
-8.0
2008
-4.1
2018
Statistics calculated for the period Jan 1994 - Dec 2021

For further information about the seasonality, check the Asset Class Seasonality page.

Monthly/Yearly Returns

Dynamic 60/40 Income Portfolio monthly and yearly returns: how is the distribution of the returns recorded so far?

MONTHLY RETURNS HISTOGRAM
231 Positive Months (69%) - 105 Negative Months (31%)
Jan 1994 - 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
+15.27 +7.61 -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 +4.90 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 -5.11 -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 +5.88 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

* 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
  • 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
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