Data Source: from January 1987 to September 2021
Last Update: 30 September 2021
The Stocks/Bonds 20/80 Portfolio is exposed for 20% on the Stock Market.
It's a Low Risk portfolio and it can be replicated with 2 ETFs.
In the last 10 years, the portfolio obtained a 5.66% compound annual return, with a 3.82% standard deviation.
In the last 25 years, a 6.14% compound annual return, with a 4.23% standard deviation.
In 2020, the portfolio granted a 2.37% dividend yield. If you are interested in getting periodic income, please refer to the Stocks/Bonds 20/80 Portfolio: Dividend Yield page.
Asset Allocation and ETFs
The Stocks/Bonds 20/80 Portfolio has the following asset allocation:
The Stocks/Bonds 20/80 Portfolio can be replicated with the following ETFs:
| Weight | Ticker | ETF Name | Investment Themes | |
|---|---|---|---|---|
| 20.00 % | VTI | Vanguard Total Stock Market | Equity, U.S., Large Cap | |
| 80.00 % | BND | Vanguard Total Bond Market | Bond, U.S., All-Term |
Portfolio and ETF Returns
The Stocks/Bonds 20/80 Portfolio guaranteed the following returns.
| 1M | 3M | 6M | 1Y | 3Y(*) | 5Y(*) | 10Y(*) | 20Y(*) | 25Y(*) | |
|---|---|---|---|---|---|---|---|---|---|
| Stocks/Bonds 20/80 Portfolio | -1.82 | -0.04 | +3.23 | +5.19 | +7.60 | +5.73 | +5.66 | +5.53 | +6.14 |
| Components | |||||||||
|
VTI Vanguard Total Stock Market |
-4.46 | -0.03 | +8.10 | +32.16 | +16.05 | +16.88 | +16.60 | +10.07 | +9.79 |
|
BND Vanguard Total Bond Market |
-1.01 | -0.05 | +1.88 | -1.04 | +5.36 | +2.88 | +2.88 | +4.09 | +4.86 |
- 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 Stocks/Bonds 20/80 Portfolio: Dividend Yield page.
Historical Returns
Stocks/Bonds 20/80 Portfolio - Historical returns and stats.
| Period | Returns Sep 2021 |
Standard Deviation * |
Max Drawdown |
Months Pos - Neg |
|---|---|---|---|---|
|
1M
|
-1.82%
|
-1.82%
Sep 2021 - Sep 2021
|
0 - 1 | |
|
3M
|
-0.04%
|
-1.82%
Sep 2021 - Sep 2021
|
2 - 1 | |
|
6M
|
+3.23%
|
-1.82%
Sep 2021 - Sep 2021
|
5 - 1 | |
|
YTD
|
+1.57%
|
-1.82%
Sep 2021 - Sep 2021
|
5 - 4 | |
|
1Y
|
+5.19%
|
4.64%
|
-1.82%
Sep 2021 - Sep 2021
|
7 - 5 |
|
3Y
|
+7.60%
annualized
|
5.26%
|
-3.91%
Feb 2020 - Mar 2020
|
24 - 12 |
|
5Y
|
+5.73%
annualized
|
4.44%
|
-3.91%
Feb 2020 - Mar 2020
|
42 - 18 |
|
10Y
|
+5.66%
annualized
|
3.82%
|
-3.91%
Feb 2020 - Mar 2020
|
84 - 36 |
|
20Y
|
+5.53%
annualized
|
4.10%
|
-8.42%
May 2008 - Oct 2008
|
170 - 70 |
|
25Y
|
+6.14%
annualized
|
4.23%
|
-8.42%
May 2008 - Oct 2008
|
212 - 88 |
|
MAX
01 Jan 1987
|
+6.98%
annualized
|
4.55%
|
-8.42%
May 2008 - Oct 2008
|
297 - 120 |
Best Classic Portfolios, with Low Risk, ordered by 25 Years annualized return.
25 Years Stats |
% Allocation |
||||||
|---|---|---|---|---|---|---|---|
| Portfolio | Return▾ | Drawdown | Stocks | Bonds | Comm. | ||
| High Yield Bonds Income |
+7.14% | -23.98% | 0 | 100 | 0 | Compare | |
| All Country World 20/80 |
+6.24% | -14.04% | 20 | 80 | 0 | Compare | |
| Stocks/Bonds 20/80 |
+6.14% | -8.42% | 20 | 80 | 0 | ||
| All Country World Bonds |
+5.81% | -8.82% | 0 | 100 | 0 | Compare | |
| Dimensional Retirement Income Fund DFA |
+5.77% | -12.91% | 20.4 | 79.6 | 0 | Compare | |
Capital Growth
Drawdowns
Rolling Returns ( more details)
Stocks/Bonds 20/80 Portfolio: annualized rolling and average returns
| Return (*) | Negative Periods |
|||
|---|---|---|---|---|
| Rolling Period | Average | Best | Worst | |
| 1 Year |
+7.15% |
+21.70% Jan 1995 - Dec 1995 |
-7.75% Nov 2007 - Oct 2008 |
5.42% |
| 2 Years |
+7.12% |
+15.27% Oct 1990 - Sep 1992 |
-1.26% Mar 2007 - Feb 2009 |
1.02% |
| 3 Years |
+7.04% |
+14.01% Jan 1995 - Dec 1997 |
+1.37% Mar 2006 - Feb 2009 |
0.00% |
| 5 Years |
+6.96% |
+12.26% Sep 1988 - Aug 1993 |
+2.35% Mar 2004 - Feb 2009 |
0.00% |
| 7 Years |
+6.87% |
+11.16% Oct 1990 - Sep 1997 |
+3.53% Nov 2001 - Oct 2008 |
0.00% |
| 10 Years |
+6.85% |
+10.82% Jan 1989 - Dec 1998 |
+4.23% Mar 1999 - Feb 2009 |
0.00% |
| 15 Years |
+6.62% |
+9.17% Jun 1988 - May 2003 |
+4.82% Jan 2004 - Dec 2018 |
0.00% |
| 20 Years |
+6.62% |
+8.47% Dec 1987 - Nov 2007 |
+4.99% Jan 1999 - Dec 2018 |
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 Stocks/Bonds 20/80 Portfolio: Rolling Returns page.
Seasonality and Yearly/Monthly Returns
Stocks/Bonds 20/80 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 % |
0.72 77% |
0.36 69% |
0.15 60% |
0.66 77% |
0.68 66% |
0.61 77% |
0.82 74% |
0.51 71% |
0.38 60% |
0.33 74% |
0.69 71% |
0.96 79% |
| Best Year |
3.6 1987 |
2.6 1995 |
2.3 2009 |
4.4 2020 |
4.0 1990 |
3.2 1988 |
3.9 1997 |
2.5 2000 |
2.8 1998 |
2.1 2011 |
3.3 2020 |
4.7 2008 |
| Worst Year |
-3.3 2009 |
-2.5 2009 |
-3.7 2020 |
-2.8 1987 |
-1.1 1999 |
-1.6 2013 |
-2.1 2003 |
-2.7 1990 |
-2.2 1987 |
-5.4 2008 |
-1.2 2016 |
-1.0 1996 |
For further information about the seasonality, check the Asset Class Seasonality page.
Monthly Returns of Stocks/Bonds 20/80 Portfolio
| Months | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | Return | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
| 2021 |
+1.57% | -0.8 | -0.6 | -0.3 | 1.8 | 0.2 | 1.3 | 1.3 | 0.5 | -1.8 | |||
| 2020 |
+10.38% | 1.6 | -0.2 | -3.7 | 4.4 | 1.5 | 1.0 | 2.3 | 0.6 | -0.8 | -0.8 | 3.3 | 1.1 |
| 2019 |
+13.20% | 2.6 | 0.7 | 1.8 | 0.8 | 0.0 | 2.5 | 0.4 | 1.7 | -0.1 | 0.7 | 0.8 | 0.6 |
| 2018 |
-1.13% | 0.1 | -1.6 | 0.1 | -0.6 | 1.1 | 0.1 | 0.7 | 1.3 | -0.4 | -2.3 | 0.9 | -0.5 |
| 2017 |
+7.10% | 0.5 | 1.2 | 0.0 | 0.9 | 0.8 | 0.2 | 0.7 | 0.7 | 0.2 | 0.5 | 0.6 | 0.7 |
| 2016 |
+4.58% | -0.2 | 0.7 | 2.1 | 0.5 | 0.3 | 1.7 | 1.3 | -0.2 | 0.1 | -1.2 | -1.2 | 0.7 |
| 2015 |
+0.52% | 1.4 | 0.1 | 0.2 | -0.1 | -0.1 | -1.2 | 1.1 | -1.4 | 0.1 | 1.5 | -0.2 | -0.6 |
| 2014 |
+7.16% | 0.6 | 1.3 | 0.0 | 0.7 | 1.3 | 0.6 | -0.6 | 1.8 | -0.9 | 1.1 | 1.2 | 0.0 |
| 2013 |
+5.01% | 0.5 | 0.7 | 0.9 | 1.1 | -1.0 | -1.6 | 1.6 | -1.4 | 1.8 | 1.7 | 0.4 | 0.2 |
| 2012 |
+5.82% | 1.5 | 0.9 | 0.3 | 0.7 | -0.6 | 0.9 | 1.2 | 0.7 | 0.7 | -0.5 | 0.4 | -0.4 |
| 2011 |
+6.53% | 0.5 | 1.0 | 0.0 | 1.8 | 0.7 | -0.7 | 0.8 | 0.1 | -0.9 | 2.1 | -0.1 | 1.1 |
| 2010 |
+8.44% | 0.3 | 0.9 | 1.1 | 1.3 | -0.8 | 0.0 | 2.0 | 0.4 | 1.7 | 1.1 | -0.4 | 0.6 |
| 2009 |
+8.69% | -3.3 | -2.5 | 2.3 | 2.4 | 1.6 | 0.6 | 2.6 | 1.6 | 1.7 | -0.4 | 2.3 | -0.5 |
| 2008 |
-1.91% | -0.2 | -0.4 | 0.2 | 0.6 | -0.4 | -1.6 | -0.1 | 1.0 | -2.1 | -5.4 | 2.2 | 4.7 |
| 2007 |
+6.61% | 0.3 | 0.9 | 0.2 | 1.2 | 0.2 | -0.7 | -0.1 | 1.4 | 1.4 | 1.1 | 0.6 | 0.0 |
| 2006 |
+6.55% | 0.6 | 0.3 | -0.4 | 0.0 | -0.8 | 0.1 | 1.0 | 1.8 | 1.1 | 1.3 | 1.4 | -0.1 |
| 2005 |
+3.18% | 0.0 | -0.1 | -0.8 | 0.7 | 1.6 | 0.6 | 0.1 | 0.9 | -0.7 | -1.1 | 1.3 | 0.8 |
| 2004 |
+5.95% | 1.2 | 1.1 | 0.4 | -2.5 | -0.1 | 0.9 | 0.0 | 1.6 | 0.5 | 1.0 | 0.3 | 1.4 |
| 2003 |
+9.33% | -0.5 | 0.8 | 0.0 | 2.4 | 2.6 | 0.2 | -2.1 | 1.0 | 1.9 | 0.6 | 0.6 | 1.6 |
| 2002 |
+2.51% | 0.4 | 0.3 | -0.5 | 0.5 | 0.4 | -1.1 | -1.1 | 1.5 | -0.4 | 0.6 | 1.0 | 0.9 |
| 2001 |
+4.55% | 2.2 | -1.2 | -0.8 | 1.1 | 0.8 | 0.1 | 1.5 | -0.2 | -0.8 | 2.0 | 0.1 | -0.2 |
| 2000 |
+7.00% | -1.0 | 1.4 | 2.2 | -1.4 | -0.8 | 2.6 | 0.3 | 2.5 | -0.3 | 0.1 | -0.5 | 1.8 |
| 1999 |
+4.16% | 1.4 | -2.2 | 1.2 | 1.3 | -1.1 | 0.7 | -1.0 | -0.3 | 0.5 | 1.6 | 0.8 | 1.3 |
| 1998 |
+11.52% | 1.1 | 1.4 | 1.3 | 0.6 | 0.2 | 1.4 | -0.3 | -1.8 | 2.8 | 1.0 | 1.6 | 1.7 |
| 1997 |
+13.75% | 1.3 | 0.1 | -1.7 | 2.1 | 2.2 | 1.9 | 3.9 | -1.5 | 2.4 | 0.3 | 1.0 | 1.2 |
| 1996 |
+7.06% | 1.0 | -1.1 | -0.4 | 0.1 | 0.4 | 0.8 | -1.0 | 0.5 | 2.5 | 2.0 | 2.9 | -1.0 |
| 1995 |
+21.70% | 2.0 | 2.6 | 1.1 | 1.6 | 3.9 | 1.1 | 0.7 | 1.2 | 1.5 | 0.9 | 2.0 | 1.5 |
| 1994 |
-2.16% | 1.7 | -1.9 | -2.7 | -0.5 | 0.2 | -0.7 | 2.1 | 1.0 | -1.5 | 0.3 | -0.9 | 0.9 |
| 1993 |
+9.87% | 1.6 | 1.7 | 0.8 | 0.0 | 0.7 | 1.6 | 0.4 | 2.1 | 0.3 | 0.6 | -1.1 | 0.8 |
| 1992 |
+7.53% | -1.1 | 0.8 | -0.9 | 0.9 | 1.6 | 0.7 | 2.3 | 0.4 | 1.2 | -0.8 | 0.8 | 1.5 |
| 1991 |
+18.68% | 1.9 | 2.0 | 1.2 | 0.9 | 1.4 | -1.1 | 2.1 | 2.2 | 1.3 | 1.1 | -0.3 | 4.6 |
| 1990 |
+5.70% | -2.9 | 0.9 | 0.5 | -1.3 | 4.0 | 1.2 | 0.8 | -2.7 | -0.4 | 1.0 | 2.9 | 1.7 |
| 1989 |
+16.54% | 2.0 | -0.9 | 0.6 | 2.6 | 2.8 | 2.3 | 3.3 | -0.8 | 0.3 | 1.3 | 0.9 | 1.0 |
| 1988 |
+9.35% | 3.4 | 2.0 | -1.2 | -0.2 | -0.8 | 3.2 | -0.5 | -0.5 | 2.5 | 1.5 | -1.0 | 0.8 |
| 1987 |
+1.75% | 3.6 | 1.5 | 0.0 | -2.8 | -0.2 | 2.1 | 1.0 | 0.4 | -2.2 | -3.1 | -0.9 | 2.7 |
* 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:
- VTI - Vanguard Total Stock Market: simulated historical serie, up to December 2001
- BND - Vanguard Total Bond Market: simulated historical serie, up to December 2007