Last Update: 31 December 2020
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 7.9% compound annual return, with a 5.87% 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:
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 |
Portfolio and ETF Returns
The Stocks/Bonds 40/60 Portfolio guaranteed the following returns.
1M | 3M | 6M | 1Y | 3Y(*) | 5Y(*) | 10Y(*) | |
---|---|---|---|---|---|---|---|
Stocks/Bonds 40/60 Portfolio | +2.04 | +6.34 | +10.31 | +13.04 | +9.15 | +8.94 | +7.90 |
Components | |||||||
VTI - Vanguard Total Stock Market | +4.68 | +14.75 | +25.36 | +21.03 | +14.45 | +15.44 | +13.77 |
BND - Vanguard Total Bond Market | +0.15 | +0.80 | +1.21 | +7.71 | +5.40 | +4.45 | +3.73 |
- 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.
Historical Returns
Stocks/Bonds 40/60 Portfolio - Historical returns and stats.
Period | Returns Dec 2020 |
Standard Deviation * |
Max Drawdown |
Months Pos - Neg |
---|---|---|---|---|
1M
|
+2.04%
|
0.00%
|
1 - 0 | |
3M
|
+6.34%
|
-1.11%
Oct 2020 - Oct 2020
|
2 - 1 | |
6M
|
+10.31%
|
-2.59%
Sep 2020 - Oct 2020
|
4 - 2 | |
YTD
|
+13.04%
|
11.24%
|
-8.09%
Feb 2020 - Mar 2020
|
8 - 4 |
1Y
|
+13.04%
|
11.24%
|
-8.09%
Feb 2020 - Mar 2020
|
8 - 4 |
3Y
|
+9.15%
annualized
|
8.23%
|
-8.09%
Feb 2020 - Mar 2020
|
25 - 11 |
5Y
|
+8.94%
annualized
|
6.71%
|
-8.09%
Feb 2020 - Mar 2020
|
46 - 14 |
10Y
|
+7.90%
annualized
|
5.87%
|
-8.09%
Feb 2020 - Mar 2020
|
89 - 31 |
MAX
01 Jan 1987
|
+8.18%
annualized
|
6.77%
|
-19.17%
Nov 2007 - Feb 2009
|
286 - 122 |
* Annualized St.Dev. of monthly returns
Best Medium Risk Porftolios, ordered by 10Y annualized return.
Portfolio | 10Y Return ▾ | Stocks | Bonds | Comm. | ||
---|---|---|---|---|---|---|
Couch Potato Scott Burns |
+8.93% | 50 | 50 | 0 | Compare | |
Stocks/Bonds 40/60 |
+7.90% | 40 | 60 | 0 | ||
All Weather Portfolio Ray Dalio |
+7.77% | 30 | 55 | 15 | Compare | |
Robo Advisor 50 Betterment |
+6.98% | 49.9 | 50.1 | 0 | Compare | |
Edge Select Moderately Conservative Merrill Lynch |
+6.93% | 37 | 63 | 0 | Compare |
Capital Growth
Drawdowns
Rolling Returns ( more details)
Stocks/Bonds 40/60 Portfolio: annualized rolling and average returns
Return (*) | Negative Periods |
|||
---|---|---|---|---|
Rolling Period | Average | Best | Worst | |
1 Year |
+8.14% |
+25.63% Mar 2009 - Feb 2010 |
-16.25% Mar 2008 - Feb 2009 |
11.59% |
2 Years |
+8.09% |
+18.91% Mar 2009 - Feb 2011 |
-7.31% Mar 2007 - Feb 2009 |
5.97% |
3 Years |
+8.01% |
+17.79% Jan 1995 - Dec 1997 |
-2.41% Mar 2006 - Feb 2009 |
1.88% |
5 Years |
+7.94% |
+15.33% Jan 1995 - Dec 1999 |
+0.55% Mar 2004 - Feb 2009 |
0.00% |
7 Years |
+7.86% |
+13.48% Oct 1990 - Sep 1997 |
+2.31% Mar 2002 - Feb 2009 |
0.00% |
10 Years |
+7.75% |
+12.59% Jan 1989 - Dec 1998 |
+2.89% Mar 1999 - Feb 2009 |
0.00% |
15 Years |
+7.32% |
+10.02% Jan 1987 - Dec 2001 |
+5.31% Sep 2000 - Aug 2015 |
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
Months | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Return (%) | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
Average | 0.9 | 0.5 | 0.3 | 0.9 | 0.8 | 0.6 | 0.9 | 0.3 | 0.3 | 0.3 | 1.0 | 1.2 |
Best |
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 |
-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 |
Gain Frequency |
71 | 71 | 71 | 74 | 68 | 71 | 68 | 65 | 59 | 68 | 74 | 85 |
Detail of Monthly Returns
Months | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Year | Return | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
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