Data Source: from January 1987 to December 2021

Last Update: 31 December 2021

The Stocks/Bonds 40/60 Portfolio is exposed for 40% on the Stock Market.

It's a Medium Risk portfolio and it can be replicated with 2 ETFs.

In the last 10 years, the portfolio obtained a 8.30% compound annual return, with a 5.79% standard deviation.

In the last 25 years, a 7.24% compound annual return, with a 6.51% standard deviation.

Asset Allocation and ETFs

The Stocks/Bonds 40/60 Portfolio has the following asset allocation:

40% Stocks
60% Fixed Income
0% Commodities

The Stocks/Bonds 40/60 Portfolio can be replicated with the following ETFs:

Weight Ticker ETF Name Investment Themes
40.00 % VTI Vanguard Total Stock Market Equity, U.S., Large Cap
60.00 % BND Vanguard Total Bond Market Bond, U.S., All-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 Stocks/Bonds 40/60 Portfolio guaranteed the following returns.

STOCKS/BONDS 40/60 PORTFOLIO RETURNS (%)
Last Update: 31 December 2021
Swipe left to see all data
1M 3M 6M 1Y 3Y(*) 5Y(*) 10Y(*) 20Y(*) 25Y(*)
Stocks/Bonds 40/60 Portfolio +1.54 +3.98 +3.94 +9.15 +13.20 +9.44 +8.30 +6.86 +7.24
--- Inflation Adjusted return +1.06 +1.73 +0.52 +1.89 +9.34 +6.34 +6.06 +4.45 +4.84
Components
VTI
Vanguard Total Stock Market
+3.79 +9.11 +9.08 +25.67 +25.73 +17.96 +16.29 +9.91 +9.88
BND
Vanguard Total Bond Market
-0.31 -0.04 -0.08 -1.86 +4.78 +3.54 +2.75 +4.09 +4.73
(*) 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 1.84% dividend yield. If you are interested in getting periodic income, please refer to the Stocks/Bonds 40/60 Portfolio: Dividend Yield page.

Historical Returns

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

STOCKS/BONDS 40/60 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
+1.54%
+1.06%
0.00%
1 - 0
3M
+3.98%
+1.73%
-0.55%
Nov 2021 - Nov 2021
2 - 1
6M
+3.94%
+0.52%
-2.56%
Sep 2021 - Sep 2021
4 - 2
YTD
+9.15%
+1.89%
5.04%
-2.56%
Sep 2021 - Sep 2021
9 - 3
75% pos
1Y
+9.15%
+1.89%
5.04%
-2.56%
Sep 2021 - Sep 2021
9 - 3
75% pos
3Y
+13.20%
annualized
+9.34%
annualized
7.72%
-8.09%
Feb 2020 - Mar 2020
28 - 8
78% pos
5Y
+9.44%
annualized
+6.34%
annualized
6.80%
-8.09%
Feb 2020 - Mar 2020
45 - 15
75% pos
10Y
+8.30%
annualized
+6.06%
annualized
5.79%
-8.09%
Feb 2020 - Mar 2020
89 - 31
74% pos
20Y
+6.86%
annualized
+4.45%
annualized
6.21%
-19.17%
Nov 2007 - Feb 2009
169 - 71
70% pos
25Y
+7.24%
annualized
+4.84%
annualized
6.51%
-19.17%
Nov 2007 - Feb 2009
206 - 94
69% pos
MAX
01 Jan 1987
+8.20%
annualized
+5.37%
annualized
6.72%
-19.17%
Nov 2007 - Feb 2009
294 - 126
70% pos
(*)Annualized St.Dev. of monthly returns

Portfolio efficiency

Is the Stocks/Bonds 40/60 Portfolio actually efficient, compared to other Lazy Portfolios?

Similar portfolios, ordered by 5 Years annualized return.

These portfolios share asset allocation strategy and/or similar asset weights. Comparing their returns and drawdowns, you can get an idea of the risk you are facing implementing one of them.

5 Years Stats
% Allocation
Portfolio Return Drawdown Stocks Bonds Comm.
Stocks/Bonds 40/60 2x Leveraged
+16.41% -9.59% 40 60 0 Compare
Stocks/Bonds 40/60 with Bitcoin
+15.34% -8.64% 39 59 2 Compare
Stocks/Bonds 40/60
+9.44% -8.09% 40 60 0
Stocks/Bonds 40/60 Momentum
+9.41% -7.68% 40 60 0 Compare
Stocks/Bonds 40/60 ESG
+8.35% -6.32% 40 60 0 Compare

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

25 Years Stats
% Allocation
Portfolio Return Drawdown Stocks Bonds Comm.
Couch Potato
Scott Burns
+8.33% -27.03% 50 50 0 Compare
All Weather Portfolio
Ray Dalio
+7.89% -12.19% 30 55 15 Compare
Robo Advisor 50
Betterment
+7.63% -30.72% 49.9 50.1 0 Compare
Simplified Permanent Portfolio
+7.48% -13.28% 25 50 25 Compare
Stocks/Bonds 40/60
+7.24% -19.17% 40 60 0

See all portfolios

Our overall ratings, assigned to the Stocks/Bonds 40/60 Portfolio. The portfolio is classified as Medium 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%
Medium Risk
Portfolios
All
Portfolios
25 Years Ann. Return
(Inflation Adjusted)
+7.24%
(+4.84%)
Good : 3.3 / 5
Good : 3.1 / 5
Standard Deviation
over 25 Years
6.51%
Good : 4 / 5
Excellent : 4.2 / 5
Maximum Drawdown
over 25 Years
-19.17%
Good : 3.9 / 5
Good : 4 / 5
Easy to manage 2 ETFs
Excellent : 4.5 / 5
Excellent : 4.5 / 5
Rating assigned considering all the Medium Risk Portfolios Rating assigned considering all the Portfolios in the database

Capital Growth

Time Range:

An investment of 1000$, since January 1997, now would be worth 5743.46$, with a total return of 474.35% (7.24% annualized).

The Inflation Adjusted Capital now would be 3261.28$, with a net total return of 226.13% (4.84% 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
-19.17% Nov 2007 Feb 2009 16 Nov 2009 9 25
-8.59% Sep 2000 Sep 2002 25 May 2003 8 33
-8.09% Feb 2020 Mar 2020 2 May 2020 2 4
-6.25% Jul 1998 Aug 1998 2 Nov 1998 3 5
-5.36% Sep 2018 Dec 2018 4 Mar 2019 3 7
-4.76% Jun 2011 Sep 2011 4 Dec 2011 3 7
-3.96% May 2010 Jun 2010 2 Sep 2010 3 5
-3.79% Apr 2000 May 2000 2 Aug 2000 3 5
-3.41% Jun 2015 Sep 2015 4 Mar 2016 6 10
-2.87% Feb 2018 Apr 2018 3 Jul 2018 3 6
-2.59% Sep 2020 Oct 2020 2 Nov 2020 1 3
-2.57% Feb 1999 Feb 1999 1 Apr 1999 2 3
-2.56% Sep 2021 Sep 2021 1 Oct 2021 1 2
-2.46% Apr 2004 Apr 2004 1 Sep 2004 5 6
-2.41% Mar 1997 Mar 1997 1 Apr 1997 1 2
-2.32% Jul 1999 Sep 1999 3 Oct 1999 1 4
-2.12% Aug 1997 Aug 1997 1 Sep 1997 1 2
-2.11% May 2012 May 2012 1 Jul 2012 2 3
-1.93% Jun 2007 Jul 2007 2 Sep 2007 2 4
-1.84% Aug 2013 Aug 2013 1 Sep 2013 1 2

Rolling Returns ( more details)

Stocks/Bonds 40/60 Portfolio: annualized rolling and average returns

Swipe left to see all data
Return (*) Negative
Periods
Rolling Period Average Best Worst
1 Year
+8.32% +25.63%
Mar 2009 - Feb 2010
-16.25%
Mar 2008 - Feb 2009
11.25%
2 Years
+8.21% +18.91%
Mar 2009 - Feb 2011
-7.31%
Mar 2007 - Feb 2009
5.79%
3 Years
+8.09% +17.79%
Jan 1995 - Dec 1997
-2.41%
Mar 2006 - Feb 2009
1.82%
5 Years
+7.98% +15.33%
Jan 1995 - Dec 1999
+0.55%
Mar 2004 - Feb 2009
0.00%
7 Years
+7.85% +13.48%
Oct 1990 - Sep 1997
+2.31%
Mar 2002 - Feb 2009
0.00%
10 Years
+7.77% +12.59%
Jan 1989 - Dec 1998
+2.89%
Mar 1999 - Feb 2009
0.00%
15 Years
+7.31% +10.02%
Jan 1987 - Dec 2001
+5.31%
Sep 2000 - Aug 2015
0.00%
20 Years
+7.31% +9.50%
Dec 1987 - Nov 2007
+5.38%
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 Stocks/Bonds 40/60 Portfolio: Rolling Returns page.

Seasonality

Stocks/Bonds 40/60 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 %
0.83
69%
0.46
71%
0.35
69%
0.99
74%
0.80
69%
0.58
71%
0.96
69%
0.37
66%
0.25
57%
0.37
69%
0.93
71%
1.26
86%
Best
Year
5.9
1987
3.3
1991
3.7
2009
6.3
2020
5.2
1990
3.7
2019
4.9
1997
3.6
2000
3.7
1998
4.2
2011
5.4
2020
6.2
1991
Worst
Year
-4.5
2009
-4.4
2009
-6.1
2020
-2.5
2004
-2.6
2010
-3.2
2008
-2.7
2002
-5.5
1998
-3.8
2008
-8.9
1987
-2.7
2000
-2.7
2018
Statistics calculated for the period Jan 1987 - Dec 2021

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

Monthly/Yearly Returns

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

MONTHLY RETURNS HISTOGRAM
294 Positive Months (70%) - 126 Negative Months (30%)
Jan 1987 - 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
+9.15 +1.89 -0.7 0.3 0.8 2.6 0.3 1.6 1.4 1.2 -2.6 3.0 -0.6 1.5
2020
+13.04 +11.59 1.2 -2.2 -6.1 6.3 2.4 1.3 3.1 2.2 -1.5 -1.1 5.4 2.0
2019
+17.57 +14.97 4.1 1.4 1.7 1.7 -1.8 3.7 0.7 0.7 0.4 1.1 1.6 1.2
2018
-2.15 -4.00 1.3 -2.2 -0.4 -0.3 1.5 0.3 1.3 1.8 -0.2 -3.7 1.2 -2.7
2017
+10.63 +8.35 0.9 1.9 0.0 0.9 0.8 0.4 1.0 0.6 0.7 0.9 1.2 0.8
2016
+6.64 +4.50 -1.6 0.5 3.3 0.5 0.7 1.3 1.9 -0.1 0.2 -1.4 0.3 1.0
2015
+0.48 -0.16 0.3 1.4 -0.1 0.1 0.2 -1.3 1.2 -2.6 -0.7 3.1 0.0 -1.0
2014
+8.51 +7.81 -0.3 2.2 0.1 0.5 1.5 1.1 -1.0 2.4 -1.2 1.5 1.5 0.0
2013
+12.12 +10.45 1.8 0.8 1.7 1.3 -0.1 -1.6 2.7 -1.8 2.4 2.4 1.1 0.9
2012
+8.47 +6.60 2.4 1.8 1.0 0.4 -2.1 1.7 1.1 1.2 1.2 -0.8 0.5 0.0
2011
+5.14 +2.02 0.9 1.7 0.1 2.1 0.2 -1.0 0.0 -1.4 -2.5 4.2 -0.2 1.1
2010
+10.69 +9.12 -0.7 1.5 2.4 1.5 -2.6 -1.4 3.2 -0.9 3.5 1.8 -0.2 2.2
2009
+13.74 +10.63 -4.5 -4.4 3.7 4.4 2.6 0.5 3.9 2.2 2.4 -1.0 3.2 0.5
2008
-10.67 -10.65 -1.7 -0.9 -0.1 1.6 0.2 -3.2 -0.2 1.1 -3.8 -8.0 0.2 4.2
2007
+6.30 +2.11 0.7 0.2 0.5 1.9 1.1 -1.0 -1.0 1.4 2.0 1.3 -0.8 -0.1
2006
+8.84 +6.16 1.2 0.3 0.2 0.3 -1.4 0.1 0.7 1.9 1.4 1.9 1.6 0.2
2005
+3.96 +0.60 -0.6 0.4 -1.0 -0.1 2.1 0.6 1.1 0.4 -0.3 -1.4 2.1 0.6
2004
+7.66 +4.17 1.6 1.2 0.1 -2.5 0.3 1.2 -0.9 1.2 0.8 1.2 1.4 2.0
2003
+14.68 +12.40 -1.1 0.2 0.2 3.9 3.5 0.6 -1.0 1.4 1.1 2.0 0.8 2.3
2002
-3.23 -5.58 0.1 -0.2 0.5 -0.8 -0.1 -2.5 -2.7 1.4 -2.4 1.9 2.0 -0.4
2001
+0.67 -0.92 2.6 -3.3 -2.2 2.7 0.8 -0.3 0.7 -1.5 -2.6 2.1 1.6 0.2
2000
+2.61 -0.80 -1.8 1.7 3.1 -2.4 -1.4 3.0 -0.2 3.6 -1.4 -0.4 -2.7 1.8
1999
+9.07 +6.23 1.9 -2.6 1.9 2.2 -1.3 1.8 -1.6 -0.4 -0.3 2.8 1.5 3.0
1998
+14.45 +12.64 1.0 2.9 2.3 0.8 -0.6 2.0 -0.8 -5.5 3.7 2.5 2.8 2.9
1997
+18.06 +16.09 2.3 0.0 -2.4 2.7 3.4 2.5 4.9 -2.1 3.3 -0.7 1.6 1.3
1996
+10.53 +6.92 1.4 -0.4 0.0 0.7 1.0 0.4 -2.1 1.2 3.2 1.9 3.9 -1.0
1995
+25.22 +22.13 2.0 2.9 1.5 1.8 3.8 1.6 1.5 1.1 2.1 0.3 2.6 1.5
1994
-1.66 -4.15 2.1 -2.0 -3.2 -0.1 0.4 -1.2 2.3 1.8 -1.6 0.6 -1.6 1.0
1993
+10.06 +7.05 1.5 1.4 1.2 -0.7 1.3 1.3 0.3 2.6 0.2 0.8 -1.2 1.0
1992
+7.93 +4.82 -0.8 0.9 -1.3 1.0 1.3 0.1 2.7 -0.2 1.2 -0.3 1.6 1.6
1991
+22.10 +18.57 2.7 3.3 1.6 0.7 2.1 -2.0 2.8 2.3 0.6 1.3 -1.2 6.2
1990
+2.76 -3.29 -3.9 1.1 1.0 -1.7 5.2 0.7 0.3 -4.3 -1.5 0.5 3.7 2.0
1989
+19.43 +14.14 3.2 -1.1 1.0 3.2 3.1 1.6 4.5 0.1 0.2 0.1 1.1 1.2
1988
+11.34 +6.63 3.6 2.8 -1.3 0.1 -0.6 3.6 -0.5 -1.1 2.8 1.5 -1.2 1.1
1987
+1.97 -2.27 5.9 2.4 0.6 -2.4 0.0 2.7 2.0 1.4 -2.2 -8.9 -2.5 3.8

* 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
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