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

Last Update: 31 May 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 7.57% compound annual return, with a 5.73% standard deviation.

In 2019, the portfolio granted a 2.66% 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

Portfolio and ETF Returns

The Stocks/Bonds 40/60 Portfolio guaranteed the following returns.

STOCKS/BONDS 40/60 PORTFOLIO RETURNS (%)

Last Update: 31 May 2020

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	1M	3M	6M	1Y	*3Y^()**	*5Y^()**	*10Y^()**
Stocks/Bonds 40/60 Portfolio	+2.38	+2.22	+2.38	+10.94	+7.20	+6.25	+7.57
*Components*
VTI - Vanguard Total Stock Market	+5.40	+2.65	-2.97	+11.28	+9.52	+9.14	+12.78
BND - Vanguard Total Bond Market	+0.67	+1.97	+5.64	+9.75	+5.18	+4.02	+3.79

(*) 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.

Historical Returns

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

STOCKS/BONDS 40/60 PORTFOLIO

Last Update: 31 May 2020

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Period	Returns May 2020	Standard Deviation *	Max Drawdown	Months Pos - Neg
1M	+2.38%		0.00%	1 - 0
3M	+2.22%		-6.07% Mar 2020 - Mar 2020	2 - 1
6M	+2.38%		-8.09% Feb 2020 - Mar 2020	4 - 2
YTD	+1.19%		-8.09% Feb 2020 - Mar 2020	3 - 2
1Y	+10.94%	9.89%	-8.09% Feb 2020 - Mar 2020	10 - 2
3Y	+7.20% annualized	7.39%	-8.09% Feb 2020 - Mar 2020	27 - 9
5Y	+6.25% annualized	6.48%	-8.09% Feb 2020 - Mar 2020	44 - 16
10Y	+7.57% annualized	5.73%	-8.09% Feb 2020 - Mar 2020	88 - 32
MAX 01 Jan 1987	+7.97% annualized	6.74%	-19.17% Nov 2007 - Feb 2009	281 - 120

* Annualized St.Dev. of monthly returns

Best Medium Risk Porftolios, ordered by 10Y annualized return.

Portfolio	10Y Return ▾	#ETF	Stocks	Bonds	Comm.
Couch Potato Scott Burns	+8.35%	2	50	50	0	Compare
All Weather Portfolio Ray Dalio	+7.78%	5	30	55	15	Compare
Stocks/Bonds 40/60	+7.57%	2	40	60	0
Permanent Portfolio Harry Browne	+6.73%	4	25	50	25	Compare
Edge Select Moderately Conservative Merrill Lynch	+6.71%	12	37	63	0	Compare

See all portfolios

Capital Growth

Time Range:

Drawdowns

Time Range:

Worst drawdowns since May 2010.

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	Drawdown period			Recovery period		Total
Drawdown	Start	Bottom	#Months	End	#Months	#Months
-8.09%	Feb 2020	Mar 2020	2	May 2020	2	4
-5.37%	Sep 2018	Dec 2018	4	Mar 2019	3	7
-4.75%	Jun 2011	Sep 2011	4	Dec 2011	3	7
-3.41%	Jun 2015	Sep 2015	4	Mar 2016	6	10
-2.87%	Feb 2018	Apr 2018	3	Jul 2018	3	6
-2.11%	May 2012	May 2012	1	Jul 2012	2	3
-1.84%	Aug 2013	Aug 2013	1	Sep 2013	1	2
-1.77%	May 2019	May 2019	1	Jun 2019	1	2
-1.61%	May 2013	Jun 2013	2	Jul 2013	1	3
-1.45%	Oct 2016	Oct 2016	1	Jan 2017	3	4
-1.40%	Jun 2010	Jun 2010	1	Jul 2010	1	2
-1.20%	Sep 2014	Sep 2014	1	Oct 2014	1	2
-0.98%	Jul 2014	Jul 2014	1	Aug 2014	1	2
-0.87%	Aug 2010	Aug 2010	1	Sep 2010	1	2
-0.83%	Oct 2012	Oct 2012	1	Jan 2013	3	4
-0.34%	Jan 2014	Jan 2014	1	Feb 2014	1	2
-0.20%	Nov 2010	Nov 2010	1	Dec 2010	1	2
-0.14%	Mar 2015	Mar 2015	1	May 2015	2	3
-0.10%	Aug 2016	Aug 2016	1	Sep 2016	1	2

Worst drawdowns since December 1986.

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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
-2.57%	Feb 1999	Feb 1999	1	Apr 1999	2	3
-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
-2.32%	Jul 1999	Sep 1999	3	Oct 1999	1	4
-2.15%	Jul 1996	Jul 1996	1	Sep 1996	2	3

Rolling Returns

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	+8.10%	+25.63% Mar 2009 - Feb 2010	-16.25% Mar 2008 - Feb 2009	11.79%
2 Years	+8.04%	+18.91% Mar 2009 - Feb 2011	-7.31% Mar 2007 - Feb 2009	6.08%
3 Years	+8.00%	+17.79% Jan 1995 - Dec 1997	-2.41% Mar 2006 - Feb 2009	1.91%
5 Years	+7.94%	+15.33% Jan 1995 - Dec 1999	+0.55% Mar 2004 - Feb 2009	0.00%
7 Years	+7.87%	+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	+7.34%	+10.02% Jan 1987 - Dec 2001	+5.31% Sep 2000 - Aug 2015	0.00%

* Annualized rolling and average returns over full calendar month periods

Yearly Returns - Monthly Returns Heatmap

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		Months
Year	Return	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2020	+1.19%	1.2	-2.2	-6.1	6.3	2.4
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