Data Source: from January 1987 to December 2021
Last Update: 31 December 2021
The Stocks/Bonds 80/20 Portfolio is exposed for 80% on the Stock Market.
It's a Very High Risk portfolio and it can be replicated with 2 ETFs.
In the last 10 years, the portfolio obtained a 13.67% compound annual return, with a 10.79% standard deviation.
In the last 25 years, a 9.17% compound annual return, with a 12.47% standard deviation.
Asset Allocation and ETFs
The Stocks/Bonds 80/20 Portfolio has the following asset allocation:
The Stocks/Bonds 80/20 Portfolio can be replicated with the following ETFs:
| Weight | Ticker | ETF Name | Investment Themes | |
|---|---|---|---|---|
| 80.00 % | VTI | Vanguard Total Stock Market | Equity, U.S., Large Cap | |
| 20.00 % | BND | Vanguard Total Bond Market | Bond, U.S., All-Term |
Portfolio and ETF Returns
The Stocks/Bonds 80/20 Portfolio guaranteed the following returns.
| 1M | 3M | 6M | 1Y | 3Y(*) | 5Y(*) | 10Y(*) | 20Y(*) | 25Y(*) | |
|---|---|---|---|---|---|---|---|---|---|
| Stocks/Bonds 80/20 Portfolio | +3.10 | +7.50 | +7.47 | +20.16 | +21.56 | +15.16 | +13.67 | +9.06 | +9.17 |
| --- Inflation Adjusted return | +2.61 | +5.18 | +3.94 | +12.17 | +17.42 | +11.89 | +11.31 | +6.60 | +6.72 |
| 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 |
- 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 1.62% dividend yield. If you are interested in getting periodic income, please refer to the Stocks/Bonds 80/20 Portfolio: Dividend Yield page.
Historical Returns
Historical returns and stats of Stocks/Bonds 80/20 Portfolio. Total Returns and Inflation Adjusted Returns are both mentioned.
| Period | Return Dec 2021 update |
Return Inflation Adjusted |
Standard Deviation(*) |
Max Drawdown |
Months Pos - Neg |
|---|---|---|---|---|---|
|
1M
Dec 2021
|
+3.10%
|
+2.61%
|
0.00%
|
1 - 0
|
|
|
3M
|
+7.50%
|
+5.18%
|
-1.18%
Nov 2021 - Nov 2021
|
2 - 1
|
|
|
6M
|
+7.47%
|
+3.94%
|
-3.88%
Sep 2021 - Sep 2021
|
4 - 2
|
|
|
YTD
|
+20.16%
|
+12.17%
|
8.40%
|
-3.88%
Sep 2021 - Sep 2021
|
9 - 3
75% pos
|
|
1Y
|
+20.16%
|
+12.17%
|
8.40%
|
-3.88%
Sep 2021 - Sep 2021
|
9 - 3
75% pos
|
|
3Y
|
+21.56%
annualized
|
+17.42%
annualized
|
14.30%
|
-16.53%
Feb 2020 - Mar 2020
|
27 - 9
75% pos
|
|
5Y
|
+15.16%
annualized
|
+11.89%
annualized
|
12.64%
|
-16.53%
Feb 2020 - Mar 2020
|
47 - 13
78% pos
|
|
10Y
|
+13.67%
annualized
|
+11.31%
annualized
|
10.79%
|
-16.53%
Feb 2020 - Mar 2020
|
90 - 30
75% pos
|
|
20Y
|
+9.06%
annualized
|
+6.60%
annualized
|
11.87%
|
-41.09%
Nov 2007 - Feb 2009
|
164 - 76
68% pos
|
|
25Y
|
+9.17%
annualized
|
+6.72%
annualized
|
12.47%
|
-41.09%
Nov 2007 - Feb 2009
|
199 - 101
66% pos
|
|
MAX
01 Jan 1987
|
+10.27%
annualized
|
+7.39%
annualized
|
12.28%
|
-41.09%
Nov 2007 - Feb 2009
|
281 - 139
67% pos
|
Portfolio efficiency
Is the Stocks/Bonds 80/20 Portfolio actually efficient, compared to other Lazy Portfolios?
Best Classic Portfolios, with Very High Risk, ordered by 25 Years annualized return.
25 Years Stats |
% Allocation |
||||||
|---|---|---|---|---|---|---|---|
| Portfolio | Return▾ | Drawdown | Stocks | Bonds | Comm. | ||
| Technology |
+13.30% | -81.08% | 100 | 0 | 0 | Compare | |
| US Stocks |
+9.88% | -50.84% | 100 | 0 | 0 | Compare | |
| Warren Buffett Portfolio Warren Buffett |
+9.38% | -45.53% | 90 | 10 | 0 | Compare | |
| Aggressive Global Income |
+9.25% | -52.62% | 80 | 20 | 0 | Compare | |
| Stocks/Bonds 80/20 |
+9.17% | -41.09% | 80 | 20 | 0 | ||
Our overall ratings, assigned to the Stocks/Bonds 80/20 Portfolio. The portfolio is classified as Very High Risk.
Less than 25%
25% - 49.99%
50% - 74.99%
At least 75%
| Very High Risk Portfolios |
All Portfolios |
||
|---|---|---|---|
| 25 Years Ann. Return (Inflation Adjusted) |
+9.17%
(+6.72%) |
Good : 3.7 / 5
|
Excellent : 4.4 / 5
|
| Standard Deviation over 25 Years |
12.47% |
Excellent : 4.8 / 5
|
Average : 2.8 / 5
|
| Maximum Drawdown over 25 Years |
-41.09% |
Excellent : 5 / 5
|
Average : 2.4 / 5
|
| Easy to manage | 2 ETFs |
Excellent : 4.5 / 5
|
Excellent : 4.5 / 5
|
| Rating assigned considering all the Very High Risk Portfolios | Rating assigned considering all the Portfolios in the database |
Capital Growth
An investment of 1000$, since January 1997, now would be worth 8957.57$, with a total return of 795.76% (9.17% annualized).
The Inflation Adjusted Capital now would be 5086.33$, with a net total return of 408.63% (6.72% annualized).
Drawdowns
Worst drawdowns since January 1997 - Chart and Data
Drawdown period |
Recovery period |
Total |
||||
|---|---|---|---|---|---|---|
| Drawdown | Start | Bottom | #Months | End | #Months | #Months |
| -41.09% | Nov 2007 | Feb 2009 | 16 | Jan 2011 | 23 | 39 |
| -33.33% | Sep 2000 | Sep 2002 | 25 | Jul 2005 | 34 | 59 |
| -16.53% | Feb 2020 | Mar 2020 | 2 | Jul 2020 | 4 | 6 |
| -13.95% | Jul 1998 | Aug 1998 | 2 | Nov 1998 | 3 | 5 |
| -13.35% | May 2011 | Sep 2011 | 5 | Feb 2012 | 5 | 10 |
| -11.32% | Oct 2018 | Dec 2018 | 3 | Apr 2019 | 4 | 7 |
| -7.05% | Jun 2015 | Sep 2015 | 4 | May 2016 | 8 | 12 |
| -6.90% | Apr 2000 | May 2000 | 2 | Aug 2000 | 3 | 5 |
| -5.21% | Apr 2012 | May 2012 | 2 | Aug 2012 | 3 | 5 |
| -5.12% | Jul 1999 | Sep 1999 | 3 | Nov 1999 | 2 | 5 |
| -4.97% | May 2019 | May 2019 | 1 | Jun 2019 | 1 | 2 |
| -4.64% | Feb 2018 | Mar 2018 | 2 | Jul 2018 | 4 | 6 |
| -4.49% | Sep 2020 | Oct 2020 | 2 | Nov 2020 | 1 | 3 |
| -4.17% | Jun 2007 | Jul 2007 | 2 | Sep 2007 | 2 | 4 |
| -3.88% | Sep 2021 | Sep 2021 | 1 | Oct 2021 | 1 | 2 |
| -3.85% | Feb 1997 | Mar 1997 | 2 | May 1997 | 2 | 4 |
| -3.38% | Jan 2000 | Jan 2000 | 1 | Mar 2000 | 2 | 3 |
| -3.35% | Feb 1999 | Feb 1999 | 1 | Apr 1999 | 2 | 3 |
| -3.22% | Aug 1997 | Aug 1997 | 1 | Sep 1997 | 1 | 2 |
| -2.66% | Aug 2013 | Aug 2013 | 1 | Sep 2013 | 1 | 2 |
Rolling Returns ( more details)
Stocks/Bonds 80/20 Portfolio: annualized rolling and average returns
| Return (*) | Negative Periods |
|||
|---|---|---|---|---|
| Rolling Period | Average | Best | Worst | |
| 1 Year |
+10.71% |
+47.67% Apr 2020 - Mar 2021 |
-34.49% Mar 2008 - Feb 2009 |
17.85% |
| 2 Years |
+10.20% |
+32.35% Mar 2009 - Feb 2011 |
-19.74% Mar 2007 - Feb 2009 |
12.59% |
| 3 Years |
+9.92% |
+26.34% Apr 1995 - Mar 1998 |
-11.24% Apr 2000 - Mar 2003 |
12.73% |
| 5 Years |
+9.72% |
+23.01% Jan 1995 - Dec 1999 |
-3.66% Mar 2004 - Feb 2009 |
2.22% |
| 7 Years |
+9.47% |
+18.07% Oct 1990 - Sep 1997 |
-0.93% Mar 2002 - Feb 2009 |
0.59% |
| 10 Years |
+9.23% |
+16.75% Oct 1990 - Sep 2000 |
-0.44% Mar 1999 - Feb 2009 |
0.66% |
| 15 Years |
+8.27% |
+11.91% Jan 1987 - Dec 2001 |
+4.90% Sep 2000 - Aug 2015 |
0.00% |
| 20 Years |
+8.26% |
+11.27% Dec 1987 - Nov 2007 |
+5.30% 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 80/20 Portfolio: Rolling Returns page.
Seasonality
Stocks/Bonds 80/20 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 % |
1.03 63% |
0.65 66% |
0.75 69% |
1.68 77% |
1.04 71% |
0.50 63% |
1.22 60% |
0.08 63% |
-0.06 54% |
0.46 63% |
1.43 71% |
1.81 83% |
| Best Year |
10.5 1987 |
5.8 1998 |
6.6 2009 |
10.6 2020 |
7.5 1990 |
6.0 2019 |
6.9 1997 |
6.0 2000 |
7.4 2010 |
8.8 2011 |
9.6 2020 |
9.1 1991 |
| Worst Year |
-6.9 2009 |
-8.4 2009 |
-11.2 2020 |
-4.3 2000 |
-6.2 2010 |
-6.4 2008 |
-6.4 2002 |
-12.4 1998 |
-7.3 2008 |
-18.3 1987 |
-7.4 2000 |
-7.1 2018 |
For further information about the seasonality, check the Asset Class Seasonality page.
Monthly/Yearly Returns
Stocks/Bonds 80/20 Portfolio monthly and yearly returns: how is the distribution of the returns recorded so far?
Yearly Return(%) |
Monthly Return(%) |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | Total | Infl.Adj | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
| 2021 |
+20.16 | +12.17 | -0.4 | 2.2 | 2.7 | 4.3 | 0.4 | 2.2 | 1.6 | 2.3 | -3.9 | 5.5 | -1.2 | 3.1 |
| 2020 |
+18.36 | +16.85 | 0.3 | -6.0 | -11.2 | 10.6 | 4.3 | 1.9 | 4.8 | 5.4 | -2.9 | -1.7 | 9.6 | 3.8 |
| 2019 |
+26.30 | +23.51 | 7.1 | 2.9 | 1.5 | 3.2 | -5.0 | 6.0 | 1.2 | -1.2 | 1.3 | 1.8 | 3.1 | 2.3 |
| 2018 |
-4.19 | -6.00 | 3.9 | -3.2 | -1.4 | 0.2 | 2.3 | 0.6 | 2.7 | 2.9 | 0.1 | -6.2 | 1.7 | -7.1 |
| 2017 |
+17.68 | +15.26 | 1.5 | 3.1 | 0.0 | 1.0 | 1.0 | 0.8 | 1.6 | 0.3 | 1.9 | 1.8 | 2.5 | 1.1 |
| 2016 |
+10.77 | +8.54 | -4.3 | 0.2 | 5.8 | 0.6 | 1.4 | 0.6 | 3.3 | 0.1 | 0.2 | -1.9 | 3.1 | 1.7 |
| 2015 |
+0.40 | -0.24 | -1.7 | 4.3 | -0.8 | 0.4 | 0.9 | -1.6 | 1.5 | -5.0 | -2.2 | 6.2 | 0.4 | -1.7 |
| 2014 |
+11.20 | +10.48 | -2.2 | 4.0 | 0.4 | 0.2 | 1.9 | 2.1 | -1.7 | 3.6 | -1.8 | 2.3 | 2.2 | 0.0 |
| 2013 |
+26.34 | +24.46 | 4.2 | 1.1 | 3.2 | 1.5 | 1.6 | -1.5 | 4.8 | -2.7 | 3.4 | 3.7 | 2.2 | 2.2 |
| 2012 |
+13.79 | +11.82 | 4.2 | 3.4 | 2.4 | -0.3 | -4.9 | 3.3 | 0.9 | 2.2 | 2.1 | -1.5 | 0.7 | 0.9 |
| 2011 |
+2.36 | -0.68 | 1.7 | 3.0 | 0.3 | 2.6 | -0.6 | -1.5 | -1.5 | -4.5 | -5.8 | 8.8 | -0.3 | 1.0 |
| 2010 |
+15.18 | +13.55 | -2.6 | 2.8 | 5.1 | 2.0 | -6.2 | -4.3 | 5.7 | -3.4 | 7.4 | 3.3 | 0.3 | 5.4 |
| 2009 |
+23.84 | +20.45 | -6.9 | -8.4 | 6.6 | 8.7 | 4.5 | 0.4 | 6.5 | 3.2 | 3.6 | -2.1 | 4.9 | 2.1 |
| 2008 |
-28.21 | -28.19 | -4.7 | -1.9 | -0.6 | 3.7 | 1.4 | -6.4 | -0.5 | 1.3 | -7.3 | -14.0 | -4.8 | 2.8 |
| 2007 |
+5.68 | +1.51 | 1.5 | -1.0 | 0.9 | 3.3 | 2.8 | -1.5 | -2.7 | 1.4 | 3.2 | 1.6 | -3.3 | -0.5 |
| 2006 |
+13.41 | +10.62 | 2.6 | 0.3 | 1.5 | 0.7 | -2.6 | 0.1 | 0.2 | 2.2 | 2.0 | 3.0 | 2.1 | 0.9 |
| 2005 |
+5.53 | +2.12 | -1.9 | 1.5 | -1.6 | -1.5 | 3.3 | 0.7 | 3.3 | -0.6 | 0.4 | -2.0 | 3.8 | 0.2 |
| 2004 |
+11.08 | +7.48 | 2.3 | 1.3 | -0.7 | -2.3 | 1.1 | 1.7 | -2.7 | 0.4 | 1.4 | 1.6 | 3.6 | 2.9 |
| 2003 |
+25.40 | +22.90 | -2.2 | -0.9 | 0.6 | 7.0 | 5.0 | 1.3 | 1.3 | 2.1 | -0.4 | 4.8 | 1.3 | 3.5 |
| 2002 |
-14.73 | -16.79 | -0.6 | -1.2 | 2.6 | -3.2 | -0.9 | -5.4 | -6.4 | 1.0 | -7.3 | 5.3 | 4.5 | -3.4 |
| 2001 |
-7.09 | -8.55 | 3.4 | -7.4 | -5.2 | 6.2 | 1.0 | -1.2 | -0.9 | -4.4 | -6.7 | 2.4 | 5.4 | 1.2 |
| 2000 |
-6.18 | -9.30 | -3.4 | 2.3 | 4.8 | -4.3 | -2.7 | 3.9 | -1.4 | 6.0 | -3.6 | -1.5 | -7.4 | 1.8 |
| 1999 |
+18.90 | +15.80 | 3.1 | -3.3 | 3.3 | 3.8 | -1.8 | 4.1 | -2.7 | -0.8 | -1.8 | 5.1 | 2.8 | 6.2 |
| 1998 |
+20.33 | +18.42 | 0.6 | 5.8 | 4.2 | 1.0 | -2.0 | 3.0 | -1.8 | -12.4 | 5.6 | 5.8 | 5.0 | 5.3 |
| 1997 |
+26.68 | +24.57 | 4.4 | -0.1 | -3.8 | 3.9 | 5.9 | 3.8 | 6.9 | -3.2 | 5.0 | -2.6 | 2.8 | 1.6 |
| 1996 |
+17.49 | +13.65 | 2.3 | 1.0 | 0.8 | 1.9 | 2.1 | -0.5 | -4.3 | 2.5 | 4.7 | 1.6 | 5.9 | -1.2 |
| 1995 |
+32.26 | +29.00 | 2.1 | 3.7 | 2.3 | 2.3 | 3.6 | 2.5 | 3.2 | 1.1 | 3.1 | -0.7 | 3.7 | 1.5 |
| 1994 |
-0.67 | -3.18 | 2.7 | -2.2 | -4.0 | 0.5 | 0.8 | -2.2 | 2.8 | 3.5 | -1.8 | 1.2 | -3.0 | 1.1 |
| 1993 |
+10.44 | +7.42 | 1.2 | 0.8 | 2.0 | -2.1 | 2.4 | 0.8 | -0.1 | 3.5 | 0.1 | 1.4 | -1.5 | 1.6 |
| 1992 |
+8.71 | +5.58 | -0.3 | 1.2 | -2.0 | 1.3 | 0.8 | -1.2 | 3.5 | -1.5 | 1.1 | 0.7 | 3.3 | 1.7 |
| 1991 |
+28.96 | +25.23 | 4.2 | 5.7 | 2.5 | 0.5 | 3.4 | -3.7 | 4.2 | 2.5 | -0.6 | 1.6 | -3.0 | 9.1 |
| 1990 |
-3.13 | -8.83 | -6.0 | 1.4 | 2.0 | -2.4 | 7.5 | -0.1 | -0.6 | -7.4 | -3.9 | -0.6 | 5.4 | 2.6 |
| 1989 |
+25.22 | +19.67 | 5.5 | -1.6 | 1.8 | 4.3 | 3.6 | 0.4 | 6.6 | 1.6 | -0.1 | -1.9 | 1.4 | 1.6 |
| 1988 |
+15.32 | +10.45 | 4.1 | 4.4 | -1.4 | 0.8 | -0.2 | 4.5 | -0.6 | -2.2 | 3.4 | 1.6 | -1.4 | 1.7 |
| 1987 |
+2.40 | -1.85 | 10.5 | 4.0 | 1.7 | -1.8 | 0.3 | 3.7 | 3.8 | 3.0 | -2.1 | -18.3 | -5.6 | 6.1 |
* 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