Data Source: from January 1987 to September 2021
Last Update: 30 September 2021
The Stocks/Bonds 60/40 Portfolio is exposed for 60% on the Stock Market.
It's a High Risk portfolio and it can be replicated with 2 ETFs.
In the last 10 years, the portfolio obtained a 11.16% compound annual return, with a 8.31% standard deviation.
In the last 25 years, a 8.27% compound annual return, with a 9.39% standard deviation.
In 2020, the portfolio granted a 2.04% dividend yield. If you are interested in getting periodic income, please refer to the Stocks/Bonds 60/40 Portfolio: Dividend Yield page.
Asset Allocation and ETFs
The Stocks/Bonds 60/40 Portfolio has the following asset allocation:
The Stocks/Bonds 60/40 Portfolio can be replicated with the following ETFs:
| Weight | Ticker | ETF Name | Investment Themes | |
|---|---|---|---|---|
| 60.00 % | VTI | Vanguard Total Stock Market | Equity, U.S., Large Cap | |
| 40.00 % | BND | Vanguard Total Bond Market | Bond, U.S., All-Term |
Portfolio and ETF Returns
The Stocks/Bonds 60/40 Portfolio guaranteed the following returns.
| 1M | 3M | 6M | 1Y | 3Y(*) | 5Y(*) | 10Y(*) | 20Y(*) | 25Y(*) | |
|---|---|---|---|---|---|---|---|---|---|
| Stocks/Bonds 60/40 Portfolio | -3.24 | -0.03 | +5.76 | +18.27 | +11.92 | +11.35 | +11.16 | +8.07 | +8.27 |
| 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 |
- 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 60/40 Portfolio: Dividend Yield page.
Historical Returns
Stocks/Bonds 60/40 Portfolio - Historical returns and stats.
| Period | Returns Sep 2021 |
Standard Deviation * |
Max Drawdown |
Months Pos - Neg |
|---|---|---|---|---|
|
1M
|
-3.24%
|
-3.24%
Sep 2021 - Sep 2021
|
0 - 1 | |
|
3M
|
-0.03%
|
-3.24%
Sep 2021 - Sep 2021
|
2 - 1 | |
|
6M
|
+5.76%
|
-3.24%
Sep 2021 - Sep 2021
|
5 - 1 | |
|
YTD
|
+8.37%
|
-3.24%
Sep 2021 - Sep 2021
|
7 - 2 | |
|
1Y
|
+18.27%
|
8.87%
|
-3.24%
Sep 2021 - Sep 2021
|
9 - 3 |
|
3Y
|
+11.92%
annualized
|
11.80%
|
-12.29%
Feb 2020 - Mar 2020
|
26 - 10 |
|
5Y
|
+11.35%
annualized
|
9.56%
|
-12.29%
Feb 2020 - Mar 2020
|
45 - 15 |
|
10Y
|
+11.16%
annualized
|
8.31%
|
-12.29%
Feb 2020 - Mar 2020
|
90 - 30 |
|
20Y
|
+8.07%
annualized
|
8.89%
|
-30.54%
Nov 2007 - Feb 2009
|
166 - 74 |
|
25Y
|
+8.27%
annualized
|
9.39%
|
-30.54%
Nov 2007 - Feb 2009
|
200 - 100 |
|
MAX
01 Jan 1987
|
+9.19%
annualized
|
9.42%
|
-30.54%
Nov 2007 - Feb 2009
|
283 - 134 |
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 60/40 with Bitcoin |
+18.06% | -12.92% | 59 | 39 | 2 | Compare | |
| Stocks/Bonds 60/40 |
+11.35% | -12.29% | 60 | 40 | 0 | ||
| Stocks/Bonds 60/40 Momentum |
+11.15% | -11.66% | 60 | 40 | 0 | Compare | |
| Stocks/Bonds 60/40 ESG |
+9.61% | -10.58% | 60 | 40 | 0 | Compare | |
Best Classic Portfolios, with High Risk, ordered by 25 Years annualized return.
25 Years Stats |
% Allocation |
||||||
|---|---|---|---|---|---|---|---|
| Portfolio | Return▾ | Drawdown | Stocks | Bonds | Comm. | ||
| Yale Endowment David Swensen |
+8.94% | -39.46% | 70 | 30 | 0 | Compare | |
| Simple Path to Wealth JL Collins |
+8.92% | -38.54% | 75 | 25 | 0 | Compare | |
| Talmud Portfolio Roger Gibson |
+8.85% | -40.18% | 66.67 | 33.33 | 0 | Compare | |
| Late Sixties and Beyond Burton Malkiel |
+8.64% | -41.80% | 71 | 29 | 0 | Compare | |
| Lazy Portfolio David Swensen |
+8.43% | -40.88% | 70 | 30 | 0 | Compare | |
Capital Growth
Drawdowns
Rolling Returns ( more details)
Stocks/Bonds 60/40 Portfolio: annualized rolling and average returns
| Return (*) | Negative Periods |
|||
|---|---|---|---|---|
| Rolling Period | Average | Best | Worst | |
| 1 Year |
+9.45% |
+35.19% Mar 2009 - Feb 2010 |
-25.46% Mar 2008 - Feb 2009 |
16.75% |
| 2 Years |
+9.18% |
+25.48% Mar 2009 - Feb 2011 |
-13.47% Mar 2007 - Feb 2009 |
10.41% |
| 3 Years |
+8.99% |
+22.00% Apr 1995 - Mar 1998 |
-6.40% Mar 2006 - Feb 2009 |
8.12% |
| 5 Years |
+8.87% |
+19.17% Jan 1995 - Dec 1999 |
-1.44% Mar 2004 - Feb 2009 |
0.56% |
| 7 Years |
+8.71% |
+15.78% Oct 1990 - Sep 1997 |
+0.82% Mar 2002 - Feb 2009 |
0.00% |
| 10 Years |
+8.54% |
+14.59% Oct 1990 - Sep 2000 |
+1.34% Mar 1999 - Feb 2009 |
0.00% |
| 15 Years |
+7.86% |
+11.00% Jan 1987 - Dec 2001 |
+5.21% Sep 2000 - Aug 2015 |
0.00% |
| 20 Years |
+7.86% |
+10.43% Dec 1987 - Nov 2007 |
+5.43% 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 60/40 Portfolio: Rolling Returns page.
Seasonality and Yearly/Monthly Returns
Stocks/Bonds 60/40 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 % |
0.93 63% |
0.56 66% |
0.55 69% |
1.33 77% |
0.91 71% |
0.54 66% |
1.09 63% |
0.23 63% |
0.10 57% |
0.29 62% |
1.24 74% |
1.52 85% |
| Best Year |
8.2 1987 |
4.5 1991 |
5.1 2009 |
8.3 2020 |
6.4 1990 |
4.8 2019 |
5.9 1997 |
4.8 2000 |
5.4 2010 |
6.4 2011 |
7.5 2020 |
7.7 1991 |
| Worst Year |
-5.7 2009 |
-6.4 2009 |
-8.6 2020 |
-3.3 2000 |
-4.4 2010 |
-4.8 2008 |
-4.5 2002 |
-9.0 1998 |
-5.5 2008 |
-13.9 1987 |
-5.0 2000 |
-4.9 2018 |
For further information about the seasonality, check the Asset Class Seasonality page.
Monthly Returns of Stocks/Bonds 60/40 Portfolio
| Months | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | Return | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
| 2021 |
+8.37% | -0.6 | 1.3 | 1.7 | 3.5 | 0.4 | 1.9 | 1.5 | 1.8 | -3.2 | |||
| 2020 |
+15.70% | 0.8 | -4.1 | -8.6 | 8.3 | 3.3 | 1.6 | 3.9 | 3.8 | -2.2 | -1.4 | 7.5 | 2.9 |
| 2019 |
+21.94% | 5.6 | 2.2 | 1.6 | 2.4 | -3.4 | 4.8 | 0.9 | -0.3 | 0.9 | 1.4 | 2.4 | 1.8 |
| 2018 |
-3.17% | 2.6 | -2.7 | -0.9 | -0.1 | 1.9 | 0.4 | 2.0 | 2.4 | -0.1 | -5.0 | 1.5 | -4.9 |
| 2017 |
+14.15% | 1.2 | 2.5 | 0.0 | 1.0 | 0.9 | 0.6 | 1.3 | 0.4 | 1.3 | 1.3 | 1.9 | 0.9 |
| 2016 |
+8.71% | -3.0 | 0.4 | 4.5 | 0.6 | 1.0 | 1.0 | 2.6 | 0.0 | 0.2 | -1.7 | 1.7 | 1.4 |
| 2015 |
+0.44% | -0.7 | 2.8 | -0.5 | 0.2 | 0.6 | -1.5 | 1.4 | -3.8 | -1.4 | 4.6 | 0.2 | -1.4 |
| 2014 |
+9.85% | -1.3 | 3.1 | 0.2 | 0.4 | 1.7 | 1.6 | -1.3 | 3.0 | -1.5 | 2.0 | 1.8 | 0.0 |
| 2013 |
+19.23% | 3.0 | 1.0 | 2.5 | 1.4 | 0.8 | -1.5 | 3.8 | -2.3 | 2.9 | 3.1 | 1.7 | 1.6 |
| 2012 |
+11.13% | 3.3 | 2.6 | 1.7 | 0.0 | -3.5 | 2.5 | 1.0 | 1.7 | 1.6 | -1.2 | 0.6 | 0.5 |
| 2011 |
+3.75% | 1.3 | 2.4 | 0.2 | 2.3 | -0.2 | -1.2 | -0.7 | -3.0 | -4.1 | 6.4 | -0.2 | 1.1 |
| 2010 |
+12.93% | -1.6 | 2.2 | 3.7 | 1.8 | -4.4 | -2.9 | 4.4 | -2.1 | 5.4 | 2.5 | 0.0 | 3.8 |
| 2009 |
+18.79% | -5.7 | -6.4 | 5.1 | 6.5 | 3.6 | 0.5 | 5.2 | 2.7 | 3.0 | -1.6 | 4.1 | 1.3 |
| 2008 |
-19.44% | -3.2 | -1.4 | -0.3 | 2.7 | 0.8 | -4.8 | -0.4 | 1.2 | -5.5 | -10.9 | -2.1 | 3.5 |
| 2007 |
+5.99% | 1.1 | -0.4 | 0.7 | 2.6 | 2.0 | -1.2 | -1.9 | 1.4 | 2.6 | 1.5 | -2.0 | -0.3 |
| 2006 |
+11.12% | 1.9 | 0.3 | 0.9 | 0.5 | -2.0 | 0.1 | 0.5 | 2.0 | 1.7 | 2.4 | 1.9 | 0.6 |
| 2005 |
+4.74% | -1.2 | 1.0 | -1.3 | -0.8 | 2.7 | 0.7 | 2.2 | -0.1 | 0.0 | -1.7 | 3.0 | 0.4 |
| 2004 |
+9.37% | 1.9 | 1.3 | -0.3 | -2.4 | 0.7 | 1.5 | -1.8 | 0.8 | 1.1 | 1.4 | 2.5 | 2.5 |
| 2003 |
+20.04% | -1.6 | -0.4 | 0.4 | 5.4 | 4.3 | 1.0 | 0.2 | 1.7 | 0.3 | 3.4 | 1.1 | 2.9 |
| 2002 |
-8.98% | -0.3 | -0.7 | 1.6 | -2.0 | -0.5 | -3.9 | -4.5 | 1.2 | -4.7 | 3.5 | 3.2 | -1.8 |
| 2001 |
-3.21% | 3.0 | -5.3 | -3.7 | 4.4 | 0.9 | -0.7 | 0.0 | -2.9 | -4.5 | 2.2 | 3.4 | 0.7 |
| 2000 |
-1.79% | -2.6 | 2.0 | 3.9 | -3.3 | -2.1 | 3.5 | -0.8 | 4.8 | -2.5 | -1.0 | -5.0 | 1.8 |
| 1999 |
+13.98% | 2.5 | -3.0 | 2.6 | 3.0 | -1.6 | 3.0 | -2.2 | -0.6 | -1.0 | 4.0 | 2.2 | 4.6 |
| 1998 |
+17.39% | 0.8 | 4.4 | 3.2 | 0.9 | -1.3 | 2.5 | -1.3 | -9.0 | 4.7 | 4.2 | 3.9 | 4.1 |
| 1997 |
+22.37% | 3.4 | 0.0 | -3.1 | 3.3 | 4.7 | 3.2 | 5.9 | -2.7 | 4.2 | -1.7 | 2.2 | 1.5 |
| 1996 |
+14.01% | 1.9 | 0.3 | 0.4 | 1.3 | 1.6 | -0.1 | -3.3 | 1.8 | 4.0 | 1.7 | 4.9 | -1.1 |
| 1995 |
+28.74% | 2.1 | 3.3 | 1.9 | 2.0 | 3.7 | 2.1 | 2.4 | 1.1 | 2.6 | -0.2 | 3.2 | 1.5 |
| 1994 |
-1.16% | 2.4 | -2.1 | -3.6 | 0.2 | 0.6 | -1.7 | 2.6 | 2.7 | -1.7 | 0.9 | -2.3 | 1.1 |
| 1993 |
+10.25% | 1.3 | 1.1 | 1.6 | -1.4 | 1.9 | 1.1 | 0.1 | 3.0 | 0.2 | 1.1 | -1.4 | 1.3 |
| 1992 |
+8.32% | -0.6 | 1.0 | -1.7 | 1.1 | 1.1 | -0.6 | 3.1 | -0.8 | 1.2 | 0.2 | 2.5 | 1.7 |
| 1991 |
+25.53% | 3.4 | 4.5 | 2.1 | 0.6 | 2.7 | -2.9 | 3.5 | 2.4 | 0.0 | 1.4 | -2.1 | 7.7 |
| 1990 |
-0.19% | -5.0 | 1.3 | 1.5 | -2.1 | 6.4 | 0.3 | -0.2 | -5.8 | -2.7 | 0.0 | 4.5 | 2.3 |
| 1989 |
+22.33% | 4.3 | -1.4 | 1.4 | 3.7 | 3.4 | 1.0 | 5.5 | 0.8 | 0.0 | -0.9 | 1.3 | 1.4 |
| 1988 |
+13.33% | 3.9 | 3.6 | -1.3 | 0.5 | -0.4 | 4.1 | -0.6 | -1.7 | 3.1 | 1.6 | -1.3 | 1.4 |
| 1987 |
+2.18% | 8.2 | 3.2 | 1.2 | -2.1 | 0.2 | 3.2 | 3.0 | 2.3 | -2.1 | -13.9 | -4.1 | 5.0 |
* 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