Last Update: 31 March 2021
The Developed World 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 5.69% compound annual return, with a 9.09% standard deviation.
In 2020, the portfolio granted a 1.79% dividend yield. If you are interested in getting periodic income, please refer to the Developed World 60/40 Portfolio: Dividend Yield page.
Asset Allocation and ETFs
The Developed World 60/40 Portfolio has the following asset allocation:
The Developed World 60/40 Portfolio can be replicated with the following ETFs:
| Weight | Ticker | ETF Name | Investment Themes | |
|---|---|---|---|---|
| 60.00 % | VEA | Vanguard FTSE Developed Markets | Equity, EAFE, Large Cap | |
| 40.00 % | BNDX | Vanguard Total International Bond | Bond, Developed Markets, All-Term |
Portfolio and ETF Returns
The Developed World 60/40 Portfolio guaranteed the following returns.
| 1M | 3M | 6M | 1Y | 3Y(*) | 5Y(*) | 10Y(*) | |
|---|---|---|---|---|---|---|---|
| Developed World 60/40 Portfolio | +1.68 | +1.79 | +11.93 | +28.31 | +5.79 | +7.32 | +5.69 |
| Components | |||||||
| VEA - Vanguard FTSE Developed Markets | +2.77 | +4.51 | +21.72 | +50.88 | +6.59 | +9.66 | +5.98 |
| BNDX - Vanguard Total International Bond | -0.01 | -2.29 | -1.22 | +2.68 | +3.99 | +3.28 | +4.56 |
- 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 Developed World 60/40 Portfolio: Dividend Yield page.
Historical Returns
Developed World 60/40 Portfolio - Historical returns and stats.
| Period | Returns Mar 2021 |
Standard Deviation * |
Max Drawdown |
Months Pos - Neg |
|---|---|---|---|---|
|
1M
|
+1.68%
|
0.00%
|
1 - 0 | |
|
3M
|
+1.79%
|
-0.68%
Jan 2021 - Jan 2021
|
2 - 1 | |
|
6M
|
+11.93%
|
-1.90%
Oct 2020 - Oct 2020
|
4 - 2 | |
|
YTD
|
+1.79%
|
-0.68%
Jan 2021 - Jan 2021
|
2 - 1 | |
|
1Y
|
+28.31%
|
9.03%
|
-2.57%
Sep 2020 - Oct 2020
|
9 - 3 |
|
3Y
|
+5.79%
annualized
|
10.77%
|
-14.55%
Jan 2020 - Mar 2020
|
22 - 14 |
|
5Y
|
+7.32%
annualized
|
8.88%
|
-14.55%
Jan 2020 - Mar 2020
|
42 - 18 |
|
10Y
|
+5.69%
annualized
|
9.09%
|
-14.55%
Jan 2020 - Mar 2020
|
75 - 45 |
|
MAX
01 Jan 1999
|
+5.87%
annualized
|
10.14%
|
-37.48%
Nov 2007 - Feb 2009
|
165 - 102 |
* 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 |
+11.30% | 75 | 25 | 0 | Compare | |
| Stocks/Bonds 60/40 |
+9.76% | 60 | 40 | 0 | Compare | |
| Edge Select Moderately Aggressive Merrill Lynch |
+8.97% | 69 | 31 | 0 | Compare | |
| Yale Endowment David Swensen |
+8.90% | 70 | 30 | 0 | Compare | |
| Talmud Portfolio Roger Gibson |
+8.90% | 66.67 | 33.33 | 0 | Compare |
Capital Growth
Drawdowns
Rolling Returns ( more details)
Developed World 60/40 Portfolio: annualized rolling and average returns
| Return (*) | Negative Periods |
|||
|---|---|---|---|---|
| Rolling Period | Average | Best | Worst | |
| 1 Year |
+6.07% |
+39.00% Mar 2009 - Feb 2010 |
-33.11% Mar 2008 - Feb 2009 |
30.47% |
| 2 Years |
+5.52% |
+26.31% Mar 2009 - Feb 2011 |
-16.73% Mar 2007 - Feb 2009 |
22.95% |
| 3 Years |
+5.55% |
+20.05% Apr 2003 - Mar 2006 |
-8.00% Apr 2000 - Mar 2003 |
16.38% |
| 5 Years |
+5.96% |
+16.08% Nov 2002 - Oct 2007 |
-0.70% Jun 2007 - May 2012 |
0.48% |
| 7 Years |
+5.95% |
+10.00% Apr 2003 - Mar 2010 |
+2.77% Nov 2007 - Oct 2014 |
0.00% |
| 10 Years |
+5.60% |
+8.92% Apr 2003 - Mar 2013 |
+2.71% Mar 1999 - Feb 2009 |
0.00% |
| 15 Years |
+5.93% |
+7.92% Feb 2003 - Jan 2018 |
+4.45% Apr 2005 - 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 Developed World 60/40 Portfolio: Rolling Returns page.
Seasonality and Yearly/Monthly Returns
Developed World 60/40 Portfolio Seasonality
| Months | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Return (%) | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
| Average | -0.2 | 0.1 | 0.6 | 1.9 | -0.3 | 0.1 | 0.9 | 0.1 | 0.0 | 0.5 | 0.9 | 1.7 |
| Best |
4.9 2019 |
3.7 2014 |
4.8 2009 |
7.2 2009 |
8.2 2009 |
4.2 2012 |
7.6 2009 |
3.7 2009 |
5.4 2010 |
5.5 2011 |
8.3 2020 |
6.5 2008 |
| Worst |
-7.9 2009 |
-6.0 2009 |
-9.9 2020 |
-3.1 2000 |
-6.6 2012 |
-5.5 2008 |
-5.5 2002 |
-4.9 2011 |
-8.5 2008 |
-12.4 2008 |
-3.4 2008 |
-2.7 2018 |
| Gain Frequency |
52 | 57 | 65 | 77 | 50 | 45 | 64 | 59 | 64 | 68 | 68 | 73 |
Detail of Monthly Returns
| Months | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | Return | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
| 2021 |
+1.79% | -0.7 | 0.8 | 1.7 | |||||||||
| 2020 |
+7.71% | -1.0 | -4.2 | -9.9 | 4.6 | 3.2 | 2.2 | 1.9 | 2.6 | -0.7 | -1.9 | 8.3 | 3.5 |
| 2019 |
+16.72% | 4.9 | 1.5 | 1.0 | 1.8 | -2.8 | 4.2 | -0.8 | -0.3 | 1.7 | 1.8 | 0.7 | 2.1 |
| 2018 |
-7.73% | 2.6 | -3.0 | 0.2 | 0.7 | -1.0 | -0.8 | 1.4 | -1.0 | 0.3 | -5.1 | 0.5 | -2.7 |
| 2017 |
+16.81% | 1.8 | 1.0 | 1.9 | 1.6 | 2.4 | 0.2 | 1.9 | 0.4 | 1.5 | 1.4 | 0.6 | 1.2 |
| 2016 |
+3.45% | -2.8 | -1.3 | 4.4 | 1.3 | 0.1 | -0.4 | 2.8 | 0.3 | 1.0 | -1.9 | -1.4 | 1.6 |
| 2015 |
+0.25% | 1.1 | 3.6 | -0.6 | 2.0 | -0.2 | -2.3 | 1.4 | -4.7 | -2.1 | 4.2 | -0.4 | -1.3 |
| 2014 |
-0.09% | -2.6 | 3.7 | -0.1 | 1.2 | 1.4 | 0.9 | -1.2 | 0.7 | -2.5 | 0.1 | 0.4 | -1.8 |
| 2013 |
+12.77% | 2.2 | -0.4 | 1.0 | 3.6 | -2.7 | -2.5 | 3.4 | -1.2 | 5.1 | 2.3 | 0.5 | 1.1 |
| 2012 |
+14.95% | 3.9 | 3.0 | 0.4 | -1.0 | -6.6 | 4.2 | 0.9 | 2.3 | 2.2 | 0.7 | 2.0 | 2.7 |
| 2011 |
-3.94% | 1.4 | 2.4 | -1.5 | 4.1 | -1.3 | -0.9 | -0.6 | -4.9 | -6.2 | 5.5 | -1.4 | 0.0 |
| 2010 |
+8.42% | -2.5 | 0.6 | 3.9 | -1.1 | -6.4 | -0.3 | 6.5 | -0.8 | 5.4 | 2.4 | -3.3 | 4.5 |
| 2009 |
+22.61% | -7.9 | -6.0 | 4.8 | 7.2 | 8.2 | -0.4 | 7.6 | 3.7 | 3.1 | -1.4 | 2.8 | 0.4 |
| 2008 |
-25.33% | -3.4 | 0.0 | -0.3 | 2.7 | 0.3 | -5.5 | -1.6 | -2.0 | -8.5 | -12.4 | -3.4 | 6.5 |
| 2007 |
+8.69% | 0.7 | 0.6 | 1.6 | 2.4 | 1.1 | -0.2 | -0.8 | -0.3 | 3.7 | 3.1 | -2.0 | -1.3 |
| 2006 |
+16.94% | 3.7 | -0.3 | 2.0 | 3.0 | -2.1 | -0.2 | 1.0 | 2.1 | 0.4 | 2.6 | 2.3 | 1.5 |
| 2005 |
+10.15% | -0.9 | 2.4 | -1.2 | -0.7 | 0.1 | 1.0 | 1.8 | 2.3 | 2.4 | -2.0 | 1.3 | 3.5 |
| 2004 |
+14.59% | 1.0 | 1.9 | 0.6 | -2.0 | 0.4 | 1.7 | -2.0 | 0.8 | 1.7 | 2.3 | 4.5 | 3.0 |
| 2003 |
+24.77% | -2.1 | -0.7 | -1.3 | 5.8 | 4.3 | 1.4 | 0.9 | 1.4 | 2.5 | 3.6 | 1.5 | 5.5 |
| 2002 |
-5.65% | -3.0 | 0.6 | 3.1 | 0.7 | 1.2 | -2.0 | -5.5 | 0.3 | -5.5 | 2.9 | 2.7 | -0.9 |
| 2001 |
-8.83% | 0.8 | -4.1 | -3.1 | 4.0 | -2.2 | -2.4 | 0.3 | -0.9 | -5.1 | 2.7 | 1.2 | 0.2 |
| 2000 |
-4.89% | -4.1 | 2.2 | 2.8 | -3.1 | -1.2 | 2.7 | -2.1 | 0.6 | -2.3 | -1.2 | -1.5 | 2.4 |
| 1999 |
+22.89% | 1.5 | -1.9 | 3.1 | 3.6 | -3.2 | 2.6 | 2.2 | 0.9 | 1.2 | 2.5 | 3.3 | 5.5 |
* 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:
VEA - Vanguard FTSE Developed Markets: simulated historical serie, up to December 2007
BNDX - Vanguard Total International Bond: simulated historical serie, up to December 2013