Stocks/Bonds 40/60 Portfolio: ETF allocation and returns

Data Source: from January 1987 to September 2021

Last Update: 30 September 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 8.42% compound annual return, with a 5.84% standard deviation.

In the last 25 years, a 7.27% compound annual return, with a 6.53% standard deviation.

In 2020, the portfolio granted a 2.20% dividend yield. If you are interested in getting periodic income, please refer to the Stocks/Bonds 40/60 Portfolio: Dividend Yield page.

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: 30 September 2021

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	1M	3M	6M	1Y	*3Y^()**	*5Y^()**	*10Y^()**	*20Y^()**	*25Y^()**
Stocks/Bonds 40/60 Portfolio	-2.56	-0.04	+4.52	+11.63	+9.79	+8.56	+8.42	+6.86	+7.27
*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

(*) 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

If you are interested in getting periodic income, please refer to the Stocks/Bonds 40/60 Portfolio: Dividend Yield page.

Readings that may interest you

The Power of Potential: A Straightforward Method for Mastering Skills from ...

Workbook for Principles : Life and Work by Ray Dalio

Investing in ETFs like a Pro!: A Simple Guide to Master the Art of ETFs ...

Historical Returns

Stocks/Bonds 40/60 Portfolio - Historical returns and stats.

STOCKS/BONDS 40/60 PORTFOLIO

Last Update: 30 September 2021

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Period	Returns Sep 2021	Standard Deviation *	Max Drawdown	Months Pos - Neg
1M	-2.56%		-2.56% Sep 2021 - Sep 2021	0 - 1
3M	-0.04%		-2.56% Sep 2021 - Sep 2021	2 - 1
6M	+4.52%		-2.56% Sep 2021 - Sep 2021	5 - 1
YTD	+4.97%		-2.56% Sep 2021 - Sep 2021	7 - 2
1Y	+11.63%	6.66%	-2.56% Sep 2021 - Sep 2021	9 - 3
3Y	+9.79% annualized	8.30%	-8.09% Feb 2020 - Mar 2020	27 - 9
5Y	+8.56% annualized	6.77%	-8.09% Feb 2020 - Mar 2020	46 - 14
10Y	+8.42% annualized	5.84%	-8.09% Feb 2020 - Mar 2020	90 - 30
20Y	+6.86% annualized	6.19%	-19.17% Nov 2007 - Feb 2009	171 - 69
25Y	+7.27% annualized	6.53%	-19.17% Nov 2007 - Feb 2009	207 - 93
MAX 01 Jan 1987	+8.14% annualized	6.73%	-19.17% Nov 2007 - Feb 2009	293 - 124

* Annualized St.Dev. of monthly returns

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 with Bitcoin	+15.30%	-8.75%	39	59	2	Compare
Stocks/Bonds 40/60	+8.56%	-8.09%	40	60	0
Stocks/Bonds 40/60 Momentum	+8.45%	-7.68%	40	60	0	Compare
Stocks/Bonds 40/60 ESG	+7.37%	-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	+8.32%	-27.03%	50	50	0	Compare
All Weather Portfolio Ray Dalio	+7.92%	-12.19%	30	55	15	Compare
Robo Advisor 50 Betterment	+7.70%	-30.72%	49.9	50.1	0	Compare
Stocks/Bonds 40/60	+7.27%	-19.17%	40	60	0
Dynamic 40/60 Income	+7.22%	-29.85%	40	60	0	Compare

See all portfolios

Capital Growth

Time Range:

Drawdowns

Time Range:

Worst drawdowns since October 1996 - Chart and Data

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	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
-5.37%	Sep 2018	Dec 2018	4	Mar 2019	3	7
-4.75%	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	in progress		1
-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

Worst drawdowns since January 1987 - Chart and Data

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	Drawdown period			Recovery period		Total
Drawdown	Start	Bottom	#Months	End	#Months	#Months
-19.17%	Nov 2007	Feb 2009	16	Nov 2009	9	25
-13.08%	Sep 1987	Nov 1987	3	Oct 1988	11	14
-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
-5.99%	Feb 1994	Jun 1994	5	Feb 1995	8	13
-5.70%	Aug 1990	Sep 1990	2	Dec 1990	3	5
-5.37%	Sep 2018	Dec 2018	4	Mar 2019	3	7
-4.75%	Jun 2011	Sep 2011	4	Dec 2011	3	7
-3.96%	May 2010	Jun 2010	2	Sep 2010	3	5
-3.94%	Jan 1990	Jan 1990	1	May 1990	4	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	in progress		1
-2.46%	Apr 2004	Apr 2004	1	Sep 2004	5	6
-2.45%	Apr 1987	May 1987	2	Jun 1987	1	3
-2.41%	Mar 1997	Mar 1997	1	Apr 1997	1	2

Rolling Returns ( more details)

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

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	*Return ()**			Negative Periods
Rolling Period	Average	Best	Worst	Negative Periods
1 Year	+8.30%	+25.63% Mar 2009 - Feb 2010	-16.25% Mar 2008 - Feb 2009	11.33%
2 Years	+8.18%	+18.91% Mar 2009 - Feb 2011	-7.31% Mar 2007 - Feb 2009	5.84%
3 Years	+8.06%	+17.79% Jan 1995 - Dec 1997	-2.41% Mar 2006 - Feb 2009	1.83%
5 Years	+7.97%	+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	+7.76%	+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 and Yearly/Monthly Returns

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.

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	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%	0.36 71%	0.99 74%	0.80 69%	0.58 71%	0.96 69%	0.37 66%	0.25 57%	0.29 68%	0.97 74%	1.25 85%
Best Year	5.9 1987	3.3 1991	3.7 2009	6.3 2020	5.2 1990	3.7 2019	5.0 1997	3.7 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 - Sep 2021

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

Monthly Returns of Stocks/Bonds 40/60 Portfolio

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		Months
Year	Return	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2021	+4.97%	-0.7	0.3	0.8	2.6	0.3	1.6	1.4	1.2	-2.6
2020	+13.04%	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%	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%	1.4	-2.2	-0.4	-0.3	1.5	0.3	1.4	1.8	-0.2	-3.7	1.2	-2.7
2017	+10.63%	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%	-1.6	0.5	3.3	0.5	0.7	1.3	1.9	-0.1	0.2	-1.5	0.3	1.0
2015	+0.48%	0.4	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%	-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%	1.8	0.9	1.7	1.3	-0.1	-1.6	2.7	-1.8	2.4	2.4	1.1	0.9
2012	+8.47%	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%	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%	-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%	-4.5	-4.4	3.7	4.4	2.6	0.5	4.0	2.2	2.4	-1.0	3.2	0.5
2008	-10.67%	-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%	0.7	0.2	0.5	1.9	1.1	-1.0	-1.0	1.4	2.0	1.3	-0.8	-0.2
2006	+8.84%	1.2	0.3	0.2	0.3	-1.4	0.1	0.8	1.9	1.4	1.9	1.6	0.2
2005	+3.96%	-0.6	0.4	-1.0	-0.1	2.2	0.6	1.1	0.4	-0.3	-1.4	2.1	0.6
2004	+7.66%	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%	-1.1	0.2	0.2	3.9	3.5	0.6	-1.0	1.4	1.1	2.1	0.8	2.3
2002	-3.23%	0.1	-0.2	0.5	-0.8	-0.1	-2.5	-2.7	1.4	-2.5	1.9	2.0	-0.4
2001	+0.67%	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%	-1.8	1.7	3.1	-2.4	-1.4	3.0	-0.2	3.7	-1.4	-0.4	-2.7	1.8
1999	+9.07%	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%	1.0	2.9	2.3	0.8	-0.6	2.0	-0.8	-5.5	3.7	2.6	2.8	2.9
1997	+18.06%	2.3	0.0	-2.4	2.7	3.4	2.5	5.0	-2.1	3.3	-0.7	1.6	1.3
1996	+10.53%	1.4	-0.4	0.0	0.7	1.0	0.4	-2.2	1.2	3.3	1.9	3.9	-1.0
1995	+25.22%	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%	2.1	-2.0	-3.2	-0.2	0.4	-1.2	2.3	1.9	-1.6	0.6	-1.6	1.0
1993	+10.06%	1.5	1.4	1.2	-0.7	1.3	1.3	0.3	2.6	0.2	0.8	-1.2	1.1
1992	+7.93%	-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%	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%	-3.9	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%	3.2	-1.1	1.0	3.2	3.1	1.6	4.5	0.1	0.2	0.2	1.1	1.2
1988	+11.34%	3.6	2.8	-1.3	0.1	-0.6	3.6	-0.6	-1.1	2.8	1.5	-1.2	1.1
1987	+1.97%	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