Data Source: from January 1987 to December 2021

Last Update: 31 December 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 11.01% compound annual return, with a 8.22% standard deviation.

In the last 25 years, a 8.28% compound annual return, with a 9.38% standard deviation.

Asset Allocation and ETFs

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

60% Stocks
40% Fixed Income
0% Commodities

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
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 60/40 Portfolio guaranteed the following returns.

STOCKS/BONDS 60/40 PORTFOLIO RETURNS (%)
Last Update: 31 December 2021
Swipe left to see all data
1M 3M 6M 1Y 3Y(*) 5Y(*) 10Y(*) 20Y(*) 25Y(*)
Stocks/Bonds 60/40 Portfolio +2.35 +5.80 +5.76 +14.66 +17.39 +12.32 +11.01 +8.04 +8.28
--- Inflation Adjusted return +1.87 +3.51 +2.28 +7.03 +13.38 +9.14 +8.71 +5.60 +5.86
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 1.73% dividend yield. If you are interested in getting periodic income, please refer to the Stocks/Bonds 60/40 Portfolio: Dividend Yield page.

Historical Returns

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

STOCKS/BONDS 60/40 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
+2.35%
+1.87%
0.00%
1 - 0
3M
+5.80%
+3.51%
-0.88%
Nov 2021 - Nov 2021
2 - 1
6M
+5.76%
+2.28%
-3.24%
Sep 2021 - Sep 2021
4 - 2
YTD
+14.66%
+7.03%
6.71%
-3.24%
Sep 2021 - Sep 2021
9 - 3
75% pos
1Y
+14.66%
+7.03%
6.71%
-3.24%
Sep 2021 - Sep 2021
9 - 3
75% pos
3Y
+17.39%
annualized
+13.38%
annualized
10.92%
-12.29%
Feb 2020 - Mar 2020
27 - 9
75% pos
5Y
+12.32%
annualized
+9.14%
annualized
9.65%
-12.29%
Feb 2020 - Mar 2020
45 - 15
75% pos
10Y
+11.01%
annualized
+8.71%
annualized
8.22%
-12.29%
Feb 2020 - Mar 2020
89 - 31
74% pos
20Y
+8.04%
annualized
+5.60%
annualized
8.91%
-30.55%
Nov 2007 - Feb 2009
164 - 76
68% pos
25Y
+8.28%
annualized
+5.86%
annualized
9.38%
-30.55%
Nov 2007 - Feb 2009
199 - 101
66% pos
MAX
01 Jan 1987
+9.30%
annualized
+6.44%
annualized
9.41%
-30.55%
Nov 2007 - Feb 2009
284 - 136
68% pos
(*)Annualized St.Dev. of monthly returns

Portfolio efficiency

Is the Stocks/Bonds 60/40 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 60/40 2x Leveraged
+21.71% -18.11% 60 40 0 Compare
Stocks/Bonds 60/40 with Bitcoin
+18.19% -12.83% 59 39 2 Compare
Stocks/Bonds 60/40
+12.32% -12.29% 60 40 0
Stocks/Bonds 60/40 Momentum
+12.26% -11.66% 60 40 0 Compare
Stocks/Bonds 60/40 ESG
+10.68% -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.
Simple Path to Wealth
JL Collins
+8.96% -38.54% 75 25 0 Compare
Yale Endowment
David Swensen
+8.94% -39.46% 70 30 0 Compare
Talmud Portfolio
Roger Gibson
+8.80% -40.18% 66.67 33.33 0 Compare
Late Sixties and Beyond
Burton Malkiel
+8.63% -41.80% 71 29 0 Compare
Lazy Portfolio
David Swensen
+8.41% -40.88% 70 30 0 Compare

See all portfolios

Our overall ratings, assigned to the Stocks/Bonds 60/40 Portfolio. The portfolio is classified as High 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%
High Risk
Portfolios
All
Portfolios
25 Years Ann. Return
(Inflation Adjusted)
+8.28%
(+5.86%)
Good : 3.6 / 5
Good : 3.8 / 5
Standard Deviation
over 25 Years
9.38%
Good : 3.6 / 5
Good : 3.5 / 5
Maximum Drawdown
over 25 Years
-30.55%
Excellent : 4.8 / 5
Good : 3.2 / 5
Easy to manage 2 ETFs
Excellent : 4.5 / 5
Excellent : 4.5 / 5
Rating assigned considering all the High Risk Portfolios Rating assigned considering all the Portfolios in the database

Capital Growth

Time Range:

An investment of 1000$, since January 1997, now would be worth 7310.97$, with a total return of 631.10% (8.28% annualized).

The Inflation Adjusted Capital now would be 4151.35$, with a net total return of 315.14% (5.86% 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
-30.55% Nov 2007 Feb 2009 16 Oct 2010 20 36
-21.56% Sep 2000 Sep 2002 25 Jan 2004 16 41
-12.29% Feb 2020 Mar 2020 2 Jul 2020 4 6
-10.18% Jul 1998 Aug 1998 2 Nov 1998 3 5
-9.00% May 2011 Sep 2011 5 Jan 2012 4 9
-8.38% Sep 2018 Dec 2018 4 Mar 2019 3 7
-5.35% Apr 2000 May 2000 2 Aug 2000 3 5
-5.24% Jun 2015 Sep 2015 4 Apr 2016 7 11
-3.76% Jul 1999 Sep 1999 3 Oct 1999 1 4
-3.67% Feb 2018 Apr 2018 3 Jul 2018 3 6
-3.54% Sep 2020 Oct 2020 2 Nov 2020 1 3
-3.54% May 2012 May 2012 1 Aug 2012 3 4
-3.41% May 2019 May 2019 1 Jun 2019 1 2
-3.24% Sep 2021 Sep 2021 1 Oct 2021 1 2
-3.12% Feb 1997 Mar 1997 2 Apr 1997 1 3
-3.07% Jun 2007 Jul 2007 2 Sep 2007 2 4
-2.96% Feb 1999 Feb 1999 1 Apr 1999 2 3
-2.69% Aug 1997 Aug 1997 1 Sep 1997 1 2
-2.68% Mar 2004 Apr 2004 2 Oct 2004 6 8
-2.58% Jan 2000 Jan 2000 1 Mar 2000 2 3

Rolling Returns ( more details)

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

Swipe left to see all data
Return (*) Negative
Periods
Rolling Period Average Best Worst
1 Year
+9.51% +35.19%
Mar 2009 - Feb 2010
-25.46%
Mar 2008 - Feb 2009
16.63%
2 Years
+9.23% +25.48%
Mar 2009 - Feb 2011
-13.47%
Mar 2007 - Feb 2009
10.33%
3 Years
+9.05% +22.00%
Apr 1995 - Mar 1998
-6.40%
Mar 2006 - Feb 2009
8.05%
5 Years
+8.90% +19.17%
Jan 1995 - Dec 1999
-1.44%
Mar 2004 - Feb 2009
0.55%
7 Years
+8.72% +15.78%
Oct 1990 - Sep 1997
+0.82%
Mar 2002 - Feb 2009
0.00%
10 Years
+8.57% +14.59%
Oct 1990 - Sep 2000
+1.34%
Mar 1999 - Feb 2009
0.00%
15 Years
+7.87% +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

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.

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 %
0.93
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%
0.40
63%
1.18
71%
1.54
83%
Best
Year
8.2
1987
4.5
1991
5.1
2009
8.3
2020
6.3
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
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 60/40 Portfolio monthly and yearly returns: how is the distribution of the returns recorded so far?

MONTHLY RETURNS HISTOGRAM
284 Positive Months (68%) - 136 Negative Months (32%)
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
+14.66 +7.03 -0.5 1.3 1.7 3.5 0.3 1.9 1.5 1.8 -3.2 4.3 -0.9 2.3
2020
+15.70 +14.22 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 +19.24 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 -5.00 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 +11.80 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 +6.52 -3.0 0.3 4.5 0.6 1.0 1.0 2.6 0.0 0.2 -1.7 1.7 1.4
2015
+0.44 -0.20 -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 +9.14 -1.3 3.1 0.2 0.4 1.7 1.6 -1.3 3.0 -1.5 1.9 1.8 0.0
2013
+19.23 +17.45 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 +9.21 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 +0.67 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 +11.33 -1.6 2.2 3.7 1.7 -4.4 -2.9 4.4 -2.1 5.4 2.5 0.0 3.8
2009
+18.79 +15.54 -5.7 -6.4 5.1 6.5 3.5 0.5 5.2 2.7 3.0 -1.6 4.1 1.3
2008
-19.44 -19.42 -3.2 -1.4 -0.3 2.6 0.8 -4.8 -0.3 1.2 -5.5 -10.9 -2.1 3.5
2007
+5.99 +1.81 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 +8.39 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 +1.36 -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 +5.83 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 +17.65 -1.6 -0.4 0.4 5.4 4.3 0.9 0.2 1.7 0.3 3.4 1.1 2.9
2002
-8.98 -11.18 -0.2 -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 -4.74 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 -5.05 -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 +11.01 2.5 -3.0 2.6 3.0 -1.6 3.0 -2.2 -0.6 -1.0 4.0 2.1 4.6
1998
+17.39 +15.53 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 +20.33 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 +10.28 1.8 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 +25.56 2.1 3.3 1.9 2.0 3.7 2.1 2.4 1.1 2.6 -0.2 3.1 1.5
1994
-1.16 -3.67 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 +7.23 1.3 1.1 1.6 -1.4 1.8 1.0 0.1 3.0 0.2 1.1 -1.4 1.3
1992
+8.32 +5.20 -0.6 1.0 -1.6 1.1 1.0 -0.6 3.1 -0.8 1.1 0.2 2.5 1.7
1991
+25.53 +21.90 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 -6.06 -5.0 1.3 1.5 -2.1 6.3 0.3 -0.2 -5.8 -2.7 0.0 4.5 2.3
1989
+22.33 +16.91 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 +8.54 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 -2.06 8.2 3.2 1.2 -2.1 0.2 3.2 3.0 2.2 -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
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