Last Update: 31 December 2020
The World Developed 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 7.77% compound annual return, with a 8.65% standard deviation.
In 2020, the portfolio granted a 1.61% dividend yield. If you are interested in getting periodic income, please refer to the World Developed 60/40 Portfolio: Dividend Yield page.
Asset Allocation and ETFs
The World Developed 60/40 Portfolio has the following asset allocation:
The World Developed 60/40 Portfolio can be replicated with the following ETFs:
Weight | Ticker | ETF Name | Investment Themes | |
---|---|---|---|---|
60.00 % | VT | Vanguard Total World Stock | Equity, Developed Markets, Large Cap | |
40.00 % | BNDX | Vanguard Total International Bond | Bond, Developed Markets, All-Term |
Portfolio and ETF Returns
The World Developed 60/40 Portfolio guaranteed the following returns.
1M | 3M | 6M | 1Y | 3Y(*) | 5Y(*) | 10Y(*) | |
---|---|---|---|---|---|---|---|
World Developed 60/40 Portfolio | +3.18 | +9.65 | +15.42 | +11.83 | +8.30 | +9.46 | +7.77 |
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 60/40 Portfolio: Dividend Yield page.
Historical Returns
World Developed 60/40 Portfolio - Historical returns and stats.
Period | Returns Dec 2020 |
Standard Deviation * |
Max Drawdown |
Months Pos - Neg |
---|---|---|---|---|
1M
|
+3.18%
|
0.00%
|
1 - 0 | |
3M
|
+9.65%
|
-1.08%
Oct 2020 - Oct 2020
|
2 - 1 | |
6M
|
+15.42%
|
-2.48%
Sep 2020 - Oct 2020
|
4 - 2 | |
YTD
|
+11.83%
|
15.59%
|
-13.45%
Jan 2020 - Mar 2020
|
7 - 5 |
1Y
|
+11.83%
|
15.59%
|
-13.45%
Jan 2020 - Mar 2020
|
7 - 5 |
3Y
|
+8.30%
annualized
|
11.16%
|
-13.45%
Jan 2020 - Mar 2020
|
23 - 13 |
5Y
|
+9.46%
annualized
|
9.19%
|
-13.45%
Jan 2020 - Mar 2020
|
44 - 16 |
10Y
|
+7.77%
annualized
|
8.65%
|
-13.45%
Jan 2020 - Mar 2020
|
81 - 39 |
MAX
01 Jan 2009
|
+9.45%
annualized
|
9.76%
|
-13.45%
Jan 2020 - Mar 2020
|
96 - 48 |
* Annualized St.Dev. of monthly returns
Best High Risk Porftolios, ordered by 10Y annualized return.
Portfolio | 10Y Return ▾ | Stocks | Bonds | Comm. | ||
---|---|---|---|---|---|---|
Simple Path to Wealth JL Collins |
+11.38% | 75 | 25 | 0 | Compare | |
Stocks/Bonds 60/40 |
+9.90% | 60 | 40 | 0 | Compare | |
Yale Endowment David Swensen |
+9.07% | 70 | 30 | 0 | Compare | |
Edge Select Moderately Aggressive Merrill Lynch |
+9.02% | 69 | 31 | 0 | Compare | |
Talmud Portfolio Roger Gibson |
+8.95% | 66.67 | 33.33 | 0 | Compare |
Capital Growth
Drawdowns
Rolling Returns (more details)
World Developed 60/40 Portfolio: annualized rolling and average returns
Return (*) | Negative Periods |
|||
---|---|---|---|---|
Rolling Period | Average | Best | Worst | |
1 Year |
+8.72% |
+40.66% Mar 2009 - Feb 2010 |
-6.69% Mar 2015 - Feb 2016 |
12.78% |
2 Years |
+8.13% |
+27.53% Mar 2009 - Feb 2011 |
-0.86% Apr 2018 - Mar 2020 |
0.83% |
3 Years |
+7.87% |
+18.63% Mar 2009 - Feb 2012 |
+2.90% Apr 2017 - Mar 2020 |
0.00% |
5 Years |
+7.66% |
+15.37% Mar 2009 - Feb 2014 |
+3.32% Apr 2015 - Mar 2020 |
0.00% |
7 Years |
+7.62% |
+10.86% Mar 2009 - Feb 2016 |
+4.83% Apr 2013 - Mar 2020 |
0.00% |
10 Years |
+7.97% |
+10.36% Mar 2009 - Feb 2019 |
+5.83% 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 60/40 Portfolio: Rolling Returns page.
Seasonality and Yearly/Monthly Returns
World Developed 60/40 Portfolio Seasonality
Months | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Return (%) | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
Average | 0.2 | 0.4 | 0.7 | 2.1 | -0.2 | 0.5 | 2.2 | 0.0 | 0.6 | 0.9 | 1.3 | 0.9 |
Best |
5.2 2019 |
3.5 2015 |
5.1 2009 |
7.5 2009 |
6.9 2009 |
4.5 2019 |
7.3 2009 |
3.2 2020 |
5.7 2010 |
6.4 2011 |
7.4 2020 |
4.1 2010 |
Worst |
-6.0 2009 |
-5.8 2009 |
-9.7 2020 |
-0.3 2012 |
-5.5 2010 |
-2.4 2013 |
-0.9 2014 |
-4.3 2015 |
-5.9 2011 |
-4.7 2018 |
-2.0 2010 |
-3.8 2018 |
Gain Frequency |
50 | 67 | 67 | 92 | 58 | 50 | 83 | 58 | 58 | 58 | 83 | 75 |
Detail of Monthly Returns
Months | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Year | Return | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
2020 |
+11.83% | -0.2 | -4.0 | -9.7 | 6.5 | 3.1 | 2.0 | 3.5 | 3.2 | -1.4 | -1.1 | 7.4 | 3.2 |
2019 |
+19.24% | 5.2 | 1.8 | 1.3 | 2.2 | -3.3 | 4.5 | 0.5 | -0.5 | 1.2 | 1.5 | 1.4 | 2.1 |
2018 |
-4.73% | 3.1 | -2.6 | -0.3 | 0.2 | 0.3 | -0.1 | 1.8 | 0.5 | 0.0 | -4.7 | 1.2 | -3.8 |
2017 |
+15.65% | 1.4 | 2.0 | 0.9 | 1.2 | 1.5 | 0.2 | 1.7 | 0.6 | 1.2 | 1.6 | 1.3 | 1.1 |
2016 |
+6.95% | -3.0 | -0.1 | 4.9 | 0.5 | 0.7 | 0.7 | 2.8 | 0.2 | 0.5 | -1.7 | 0.2 | 1.3 |
2015 |
-0.64% | -0.3 | 3.5 | -0.5 | 1.1 | 0.0 | -1.9 | 0.8 | -4.3 | -1.9 | 4.5 | 0.0 | -1.4 |
2014 |
+5.70% | -2.1 | 3.3 | 0.4 | 0.7 | 1.5 | 1.6 | -0.9 | 2.1 | -2.1 | 0.8 | 1.1 | -0.8 |
2013 |
+13.44% | 2.3 | 0.1 | 1.7 | 2.0 | -1.2 | -2.4 | 3.4 | -1.8 | 3.7 | 2.7 | 1.1 | 1.3 |
2012 |
+14.09% | 3.8 | 2.9 | 0.9 | -0.3 | -5.3 | 3.2 | 1.2 | 1.8 | 2.5 | -0.3 | 1.3 | 2.0 |
2011 |
-1.06% | 1.0 | 2.0 | 0.0 | 3.0 | -1.1 | -1.0 | -0.5 | -4.1 | -5.9 | 6.4 | -1.0 | 0.6 |
2010 |
+11.26% | -2.3 | 1.4 | 4.2 | 0.3 | -5.5 | -1.0 | 5.3 | -1.1 | 5.7 | 2.2 | -2.0 | 4.1 |
2009 |
+25.71% | -6.0 | -5.8 | 5.1 | 7.5 | 6.9 | -0.4 | 7.3 | 2.6 | 3.9 | -1.3 | 3.6 | 0.9 |
* 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