Last Update: 31 December 2020
The World Developed 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 6.88% compound annual return, with a 6.05% standard deviation.
In 2020, the portfolio granted a 1.46% dividend yield. If you are interested in getting periodic income, please refer to the World Developed 40/60 Portfolio: Dividend Yield page.
Asset Allocation and ETFs
The World Developed 40/60 Portfolio has the following asset allocation:
The World Developed 40/60 Portfolio can be replicated with the following ETFs:
Weight | Ticker | ETF Name | Investment Themes | |
---|---|---|---|---|
40.00 % | VT | Vanguard Total World Stock | Equity, Developed Markets, Large Cap | |
60.00 % | BNDX | Vanguard Total International Bond | Bond, Developed Markets, All-Term |
Portfolio and ETF Returns
The World Developed 40/60 Portfolio guaranteed the following returns.
1M | 3M | 6M | 1Y | 3Y(*) | 5Y(*) | 10Y(*) | |
---|---|---|---|---|---|---|---|
World Developed 40/60 Portfolio | +2.26 | +6.77 | +10.83 | +9.43 | +7.30 | +7.85 | +6.88 |
Components | |||||||
VT - Vanguard Total World Stock | +4.94 | +15.50 | +25.15 | +16.61 | +10.09 | +12.51 | +9.34 |
BNDX - Vanguard Total International Bond | +0.36 | +1.09 | +2.15 | +4.65 | +5.09 | +4.45 | +4.90 |
- 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 World Developed 40/60 Portfolio: Dividend Yield page.
Historical Returns
World Developed 40/60 Portfolio - Historical returns and stats.
Period | Returns Dec 2020 |
Standard Deviation * |
Max Drawdown |
Months Pos - Neg |
---|---|---|---|---|
1M
|
+2.26%
|
0.00%
|
1 - 0 | |
3M
|
+6.77%
|
-0.60%
Oct 2020 - Oct 2020
|
2 - 1 | |
6M
|
+10.83%
|
-1.26%
Sep 2020 - Oct 2020
|
4 - 2 | |
YTD
|
+9.43%
|
11.10%
|
-9.56%
Feb 2020 - Mar 2020
|
8 - 4 |
1Y
|
+9.43%
|
11.10%
|
-9.56%
Feb 2020 - Mar 2020
|
8 - 4 |
3Y
|
+7.30%
annualized
|
7.77%
|
-9.56%
Feb 2020 - Mar 2020
|
27 - 9 |
5Y
|
+7.85%
annualized
|
6.41%
|
-9.56%
Feb 2020 - Mar 2020
|
47 - 13 |
10Y
|
+6.88%
annualized
|
6.05%
|
-9.56%
Feb 2020 - Mar 2020
|
87 - 33 |
MAX
01 Jan 2009
|
+8.37%
annualized
|
6.78%
|
-9.56%
Feb 2020 - Mar 2020
|
104 - 40 |
* 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 | Compare | |
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)
World Developed 40/60 Portfolio: annualized rolling and average returns
Return (*) | Negative Periods |
|||
---|---|---|---|---|
Rolling Period | Average | Best | Worst | |
1 Year |
+7.77% |
+32.40% Mar 2009 - Feb 2010 |
-3.79% Mar 2015 - Feb 2016 |
8.27% |
2 Years |
+7.27% |
+22.12% Mar 2009 - Feb 2011 |
+1.14% Apr 2018 - Mar 2020 |
0.00% |
3 Years |
+7.03% |
+16.09% Mar 2009 - Feb 2012 |
+3.53% Apr 2017 - Mar 2020 |
0.00% |
5 Years |
+6.80% |
+13.06% Mar 2009 - Feb 2014 |
+3.41% Apr 2015 - Mar 2020 |
0.00% |
7 Years |
+6.77% |
+9.78% Apr 2009 - Mar 2016 |
+4.52% Apr 2013 - Mar 2020 |
0.00% |
10 Years |
+7.16% |
+8.97% Mar 2009 - Feb 2019 |
+5.62% Apr 2010 - 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 World Developed 40/60 Portfolio: Rolling Returns page.
Seasonality and Yearly/Monthly Returns
World Developed 40/60 Portfolio Seasonality
Months | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Return (%) | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
Average | 0.5 | 0.4 | 0.6 | 1.6 | 0.0 | 0.4 | 1.8 | 0.2 | 0.6 | 0.6 | 0.9 | 0.7 |
Best |
3.8 2019 |
2.3 2014 |
3.5 2016 |
5.4 2009 |
5.1 2009 |
3.5 2019 |
6.0 2009 |
2.5 2009 |
3.7 2010 |
4.2 2011 |
5.0 2020 |
2.4 2010 |
Worst |
-3.6 2009 |
-4.0 2009 |
-7.3 2020 |
0.1 2018 |
-3.4 2012 |
-2.3 2013 |
-0.4 2014 |
-3.1 2015 |
-3.6 2011 |
-3.1 2018 |
-1.7 2010 |
-2.1 2018 |
Gain Frequency |
67 | 75 | 83 | 100 | 50 | 58 | 92 | 75 | 58 | 58 | 75 | 75 |
Detail of Monthly Returns
Months | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Year | Return | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
2020 |
+9.43% | 0.5 | -2.4 | -7.3 | 4.8 | 2.1 | 1.5 | 2.6 | 1.9 | -0.7 | -0.6 | 5.0 | 2.3 |
2019 |
+15.45% | 3.8 | 1.3 | 1.5 | 1.6 | -1.8 | 3.5 | 0.7 | 0.4 | 0.7 | 0.9 | 0.8 | 1.3 |
2018 |
-2.22% | 1.9 | -1.7 | 0.2 | 0.1 | 0.1 | 0.1 | 1.2 | 0.4 | -0.1 | -3.1 | 1.0 | -2.1 |
2017 |
+11.23% | 0.6 | 1.6 | 0.6 | 1.0 | 1.2 | 0.0 | 1.2 | 0.7 | 0.7 | 1.3 | 1.0 | 0.9 |
2016 |
+6.17% | -1.6 | 0.4 | 3.5 | 0.2 | 0.7 | 1.1 | 2.1 | 0.2 | 0.3 | -1.5 | -0.3 | 1.0 |
2015 |
-0.03% | 0.4 | 2.2 | -0.2 | 0.4 | -0.2 | -1.7 | 1.0 | -3.1 | -1.0 | 3.2 | 0.1 | -1.0 |
2014 |
+6.71% | -0.9 | 2.3 | 0.4 | 0.7 | 1.3 | 1.3 | -0.4 | 1.9 | -1.4 | 0.7 | 1.1 | -0.2 |
2013 |
+8.69% | 1.4 | 0.4 | 1.3 | 1.7 | -1.6 | -2.3 | 2.5 | -1.4 | 2.7 | 2.1 | 0.9 | 0.9 |
2012 |
+12.57% | 3.0 | 2.0 | 0.7 | 0.2 | -3.4 | 2.2 | 1.4 | 1.5 | 2.1 | -0.2 | 1.1 | 1.4 |
2011 |
+2.16% | 0.8 | 1.5 | 0.0 | 2.4 | -0.4 | -0.8 | 0.4 | -2.5 | -3.6 | 4.2 | -0.8 | 1.3 |
2010 |
+10.35% | -0.8 | 1.1 | 3.0 | 0.7 | -3.4 | -0.1 | 3.6 | 0.3 | 3.7 | 1.5 | -1.7 | 2.4 |
2009 |
+22.24% | -3.6 | -4.0 | 3.4 | 5.4 | 5.1 | 0.3 | 6.0 | 2.5 | 3.2 | -0.6 | 2.7 | 0.5 |
* Note: Portofolio Returns, up to December 2013, 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:
BNDX - Vanguard Total International Bond: simulated historical serie, up to December 2013