Data Source: from January 1994 to September 2021
Last Update: 30 September 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 8.59% compound annual return, with a 7.72% standard deviation.
In the last 25 years, a 7.42% compound annual return, with a 9.34% standard deviation.
In 2020, the portfolio granted a 3.17% 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(*) | 20Y(*) | 25Y(*) | |
|---|---|---|---|---|---|---|---|---|---|
| Dynamic 60/40 Income Portfolio | -2.58 | +0.17 | +5.39 | +16.87 | +8.80 | +7.38 | +8.59 | +7.23 | +7.42 |
| Components | |||||||||
|
PFF iShares Preferred and Income Securities ETF |
-1.12 | -0.20 | +3.48 | +11.43 | +6.83 | +5.10 | +6.77 | +5.69 | +6.32 |
|
VTI Vanguard Total Stock Market |
-4.46 | -0.03 | +8.10 | +32.16 | +16.05 | +16.88 | +16.60 | +10.07 | +9.79 |
|
VNQ Vanguard Real Estate |
-5.68 | +0.62 | +12.29 | +33.49 | +11.96 | +7.52 | +11.52 | +10.37 | +10.07 |
|
SHY iShares 1-3 Year Treasury Bond |
-0.10 | +0.03 | -0.02 | -0.10 | +2.53 | +1.51 | +1.03 | +2.20 | +3.12 |
|
HYG iShares iBoxx $ High Yield Corporate Bond |
-0.37 | +0.34 | +2.36 | +8.92 | +5.46 | +5.16 | +6.23 | +5.97 | +5.65 |
- 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 Sep 2021 |
Standard Deviation * |
Max Drawdown |
Months Pos - Neg |
|---|---|---|---|---|
|
1M
|
-2.58%
|
-2.58%
Sep 2021 - Sep 2021
|
0 - 1 | |
|
3M
|
+0.17%
|
-2.58%
Sep 2021 - Sep 2021
|
2 - 1 | |
|
6M
|
+5.39%
|
-2.58%
Sep 2021 - Sep 2021
|
5 - 1 | |
|
YTD
|
+8.84%
|
-2.58%
Sep 2021 - Sep 2021
|
7 - 2 | |
|
1Y
|
+16.87%
|
7.10%
|
-2.58%
Sep 2021 - Sep 2021
|
9 - 3 |
|
3Y
|
+8.80%
annualized
|
10.68%
|
-14.25%
Feb 2020 - Mar 2020
|
27 - 9 |
|
5Y
|
+7.38%
annualized
|
8.62%
|
-14.25%
Feb 2020 - Mar 2020
|
45 - 15 |
|
10Y
|
+8.59%
annualized
|
7.72%
|
-14.25%
Feb 2020 - Mar 2020
|
87 - 33 |
|
20Y
|
+7.23%
annualized
|
9.98%
|
-41.44%
Jun 2007 - Feb 2009
|
167 - 73 |
|
25Y
|
+7.42%
annualized
|
9.34%
|
-41.44%
Jun 2007 - Feb 2009
|
206 - 94 |
|
MAX
01 Jan 1994
|
+7.55%
annualized
|
9.00%
|
-41.44%
Jun 2007 - Feb 2009
|
229 - 104 |
Best Classic Portfolios, with High Risk, ordered by 25 Years annualized return.
25 Years Stats |
% Allocation |
||||||
|---|---|---|---|---|---|---|---|
| Portfolio | Return▾ | Drawdown | Stocks | Bonds | Comm. | ||
| Yale Endowment David Swensen |
+8.94% | -39.46% | 70 | 30 | 0 | Compare | |
| Simple Path to Wealth JL Collins |
+8.92% | -38.54% | 75 | 25 | 0 | Compare | |
| Talmud Portfolio Roger Gibson |
+8.85% | -40.18% | 66.67 | 33.33 | 0 | Compare | |
| Late Sixties and Beyond Burton Malkiel |
+8.64% | -41.80% | 71 | 29 | 0 | Compare | |
| Lazy Portfolio David Swensen |
+8.43% | -40.88% | 70 | 30 | 0 | Compare | |
Capital Growth
Drawdowns
Rolling Returns ( more details)
Dynamic 60/40 Income Portfolio: annualized rolling and average returns
| Return (*) | Negative Periods |
|||
|---|---|---|---|---|
| Rolling Period | Average | Best | Worst | |
| 1 Year |
+8.20% |
+57.27% Mar 2009 - Feb 2010 |
-36.55% Mar 2008 - Feb 2009 |
11.49% |
| 2 Years |
+7.80% |
+36.22% Mar 2009 - Feb 2011 |
-22.81% Mar 2007 - Feb 2009 |
6.45% |
| 3 Years |
+7.58% |
+24.89% Mar 2009 - Feb 2012 |
-12.45% Mar 2006 - Feb 2009 |
7.38% |
| 5 Years |
+7.25% |
+18.49% Mar 2009 - Feb 2014 |
-4.51% Mar 2004 - Feb 2009 |
1.82% |
| 7 Years |
+7.14% |
+13.85% Mar 2009 - Feb 2016 |
-0.10% Mar 2002 - Feb 2009 |
0.40% |
| 10 Years |
+7.13% |
+11.81% Mar 2009 - Feb 2019 |
+1.60% Mar 1999 - Feb 2009 |
0.00% |
| 15 Years |
+6.77% |
+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 and Yearly/Monthly Returns
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.
| 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% |
0.22 56% |
0.64 67% |
1.50 85% |
| Best Year |
6.3 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 |
For further information about the seasonality, check the Asset Class Seasonality page.
Monthly Returns of Dynamic 60/40 Income Portfolio
| Months | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | Return | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
| 2021 |
+8.84% | -0.5 | 1.1 | 2.7 | 3.1 | 0.4 | 1.6 | 1.5 | 1.3 | -2.6 | |||
| 2020 |
+6.26% | 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% | 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 |
| 2007 |
-3.54% | 2.4 | -0.4 | 0.0 | 1.1 | 0.7 | -2.8 | -3.2 | 2.1 | 1.5 | 1.3 | -4.3 | -1.6 |
| 2006 |
+14.28% | 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% | -1.9 | 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% | 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% | 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% | 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% | 2.2 | -1.4 | -1.0 | 1.8 | 1.1 | 0.9 | 0.5 | 0.4 | -3.3 | 0.9 | 3.0 | 0.5 |
| 2000 |
+5.79% | -0.9 | 0.1 | 2.2 | -0.2 | -1.1 | 3.1 | 2.2 | 1.2 | -0.1 | -1.9 | -1.7 | 2.9 |
| 1999 |
+4.89% | 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% | 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% | 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% | 1.1 | 0.4 | 0.3 | 0.5 | 1.5 | 0.5 | -0.8 | 1.8 | 2.3 | 1.7 | 3.8 | 2.1 |
| 1995 |
+20.42% | 0.9 | 2.6 | 1.0 | 1.6 | 3.5 | 1.5 | 1.4 | 1.1 | 1.8 | -0.1 | 1.8 | 1.9 |
| 1994 |
-3.20% | 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