Stocks/Bonds 20/80 To EUR Bond Hedged Portfolio: ETF allocation and returns

Data Source: from January 1975 to April 2024 (~49 years)
Consolidated Returns as of 30 April 2024
Currency: EUR

The Stocks/Bonds 20/80 To EUR Bond Hedged Portfolio is a Low Risk portfolio and can be implemented with 2 ETFs.

It's exposed for 20% on the Stock Market.

In the last 30 Years, the Stocks/Bonds 20/80 To EUR Bond Hedged Portfolio obtained a 5.35% compound annual return, with a 4.66% standard deviation.

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Asset Allocation and ETFs

The Stocks/Bonds 20/80 To EUR Bond Hedged Portfolio has the following asset allocation:

20% Stocks
80% Fixed Income
0% Commodities

The Stocks/Bonds 20/80 To EUR Bond Hedged Portfolio can be implemented with the following ETFs:

Weight
(%)
Investment Themes (Orig.Currency) ETF
Ticker
ETF
Currency
ETF Name
20.00 Equity, U.S., Large Cap (USD)
XD9U.DE
EUR Xtrackers MSCI USA
80.00 Bond, U.S., All-Term (USD)
CEBW.DE
EUR
Hedged
iShares US Aggregate Bond EUR Hedged

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 as of Apr 30, 2024

The Stocks/Bonds 20/80 To EUR Bond Hedged Portfolio guaranteed the following returns.

Returns are calculated in EUR, assuming:
  • no fees or capital gain taxes.
  • a rebalancing of the components at every January 1st. How do returns change with different rebalancing strategies?
  • the adjustment for actual currency exchange rates (simulation derived from original US returns)
  • the currency hedging (simulation taking into account the interest rate differentials of the countries). It is also assumed that hedged instruments have an additional expense ratio of 0.25% (yearly), compared to the US original instrument.
  • the actual Euro Inflation rates.
STOCKS/BONDS 20/80 TO EUR BOND HEDGED PORTFOLIO
Consolidated returns as of 30 April 2024
Swipe left to see all data
  Chg (%) Return (%) Return (%) as of Apr 30, 2024
  1 Day Time ET(*) May 2024 1M 6M 1Y 5Y 10Y 30Y MAX
(~49Y)
Stocks/Bonds 20/80 To EUR Bond Hedged Portfolio n.a. n.a. -2.88 7.28 2.86 1.78 2.99 5.35 6.99
Euro Inflation Adjusted return -3.44 6.00 0.47 -1.86 0.67 3.21 4.32
Components
XD9U.DE
EUR Xtrackers MSCI USA n.a. - n.a. -2.18 21.56 28.79 14.19 15.00 10.73 12.69
CEBW.DE
EUR
Hedged
iShares US Aggregate Bond EUR Hedged n.a. - n.a. -3.08 3.71 -3.22 -1.52 -0.13 3.59 5.16
Returns over 1 year are annualized | Available data source: since Jan 1975
(*) Eastern Time (ET - America/New York)
Euro Inflation is updated to Apr 2024. Current inflation (annualized) is 1Y: 2.38% , 5Y: 3.70% , 10Y: 2.30% , 30Y: 2.07%

Capital Growth as of Apr 30, 2024

An investment of 1€, since May 1994, now would be worth 4.77€, with a total return of 377.24% (5.35% annualized).

The Inflation Adjusted Capital now would be 2.58€, with a net total return of 158.23% (3.21% annualized).
An investment of 1€, since January 1975, now would be worth 28.00€, with a total return of 2699.63% (6.99% annualized).

The Inflation Adjusted Capital now would be 8.05€, with a net total return of 704.96% (4.32% annualized).

Portfolio Metrics as of Apr 30, 2024

Metrics of Stocks/Bonds 20/80 To EUR Bond Hedged Portfolio, updated as of 30 April 2024.

Metrics are calculated based on monthly returns, assuming:
  • no fees or capital gain taxes.
  • a rebalancing of the components at every January 1st. How do returns change with different rebalancing strategies?
  • the adjustment for actual currency exchange rates (simulation derived from original US returns)
  • the currency hedging (simulation taking into account the interest rate differentials of the countries). It is also assumed that hedged instruments have an additional expense ratio of 0.25% (yearly), compared to the US original instrument.
  • the actual Euro Inflation rates.
STOCKS/BONDS 20/80 TO EUR BOND HEDGED PORTFOLIO
Advanced Metrics
Data Source: 1 January 1975 - 30 April 2024 (~49 years)
Swipe left to see all data
Metrics as of Apr 30, 2024
1M 3M 6M 1Y 3Y 5Y 10Y 20Y 30Y MAX
(~49Y)
Investment Return (%) -2.88 -1.75 7.28 2.86 -1.47 1.78 2.99 4.12 5.35 6.99
Infl. Adjusted Return (%) details -3.44 -3.66 6.00 0.47 -6.66 -1.86 0.67 1.97 3.21 4.32
Euro Inflation (%) 0.58 1.98 1.21 2.38 5.57 3.70 2.30 2.11 2.07 2.56
Returns / Inflation rates over 1 year are annualized.
DRAWDOWN
Inflation Adjusted:
Inflation Adjusted:
1Y 3Y 5Y 10Y 20Y 30Y MAX
Deepest Drawdown Depth (%) -4.91 -15.32 -15.32 -15.32 -15.32 -15.32 -15.32
Start to Recovery (# months) details 5 28* 28* 28* 28* 28* 28*
Start (yyyy mm) 2023 08 2022 01 2022 01 2022 01 2022 01 2022 01 2022 01
Start to Bottom (# months) 3 22 22 22 22 22 22
Bottom (yyyy mm) 2023 10 2023 10 2023 10 2023 10 2023 10 2023 10 2023 10
Bottom to End (# months) 2 6 6 6 6 6 6
End (yyyy mm) 2023 12 - - - - - -
Longest Drawdown Depth (%)
same as
deepest

same as
deepest

same as
deepest

same as
deepest

same as
deepest

same as
deepest
-5.56
Start to Recovery (# months) details 30
Start (yyyy mm) 2023 08 2022 01 2022 01 2022 01 2022 01 2022 01 1977 01
Start to Bottom (# months) 3 22 22 22 22 22 22
Bottom (yyyy mm) 2023 10 2023 10 2023 10 2023 10 2023 10 2023 10 1978 10
Bottom to End (# months) 2 6 6 6 6 6 8
End (yyyy mm) 2023 12 - - - - - 1979 06
Longest negative period (# months) details 6 36* 51 51 51 51 51
Period Start (yyyy mm) 2023 05 2021 05 2019 08 2019 08 2019 08 2019 08 2019 08
Period End (yyyy mm) 2023 10 2024 04 2023 10 2023 10 2023 10 2023 10 2023 10
Annualized Return (%) -8.08 -1.47 -0.25 -0.25 -0.25 -0.25 -0.25
Drawdowns / Negative periods marked with * are in progress
Deepest Drawdown Depth (%) -5.81 -25.61 -25.61 -25.61 -25.61 -25.61 -25.61
Start to Recovery (# months) details 5 32* 32* 32* 32* 32* 32*
Start (yyyy mm) 2023 08 2021 09 2021 09 2021 09 2021 09 2021 09 2021 09
Start to Bottom (# months) 3 26 26 26 26 26 26
Bottom (yyyy mm) 2023 10 2023 10 2023 10 2023 10 2023 10 2023 10 2023 10
Bottom to End (# months) 2 6 6 6 6 6 6
End (yyyy mm) 2023 12 - - - - - -
Longest Drawdown Depth (%)
same as
deepest

same as
deepest

same as
deepest

same as
deepest

same as
deepest

same as
deepest
-20.08
Start to Recovery (# months) details 70
Start (yyyy mm) 2023 08 2021 09 2021 09 2021 09 2021 09 2021 09 1977 01
Start to Bottom (# months) 3 26 26 26 26 26 39
Bottom (yyyy mm) 2023 10 2023 10 2023 10 2023 10 2023 10 2023 10 1980 03
Bottom to End (# months) 2 6 6 6 6 6 31
End (yyyy mm) 2023 12 - - - - - 1982 10
Longest negative period (# months) details 9* 36* 60* 113 113 113 113
Period Start (yyyy mm) 2023 08 2021 05 2019 05 2014 06 2014 06 2014 06 2014 06
Period End (yyyy mm) 2024 04 2024 04 2024 04 2023 10 2023 10 2023 10 2023 10
Annualized Return (%) -0.22 -6.66 -1.86 -0.09 -0.09 -0.09 -0.09
Drawdowns / Negative periods marked with * are in progress
RISK INDICATORS
1Y 3Y 5Y 10Y 20Y 30Y MAX
Standard Deviation (%) 7.51 7.62 6.68 5.33 4.55 4.66 5.89
Sharpe Ratio -0.32 -0.54 -0.02 0.32 0.60 0.66 0.51
Sortino Ratio -0.50 -0.78 -0.03 0.45 0.82 0.91 0.73
Ulcer Index 1.79 9.46 7.39 5.30 3.83 3.19 2.91
Ratio: Return / Standard Deviation 0.38 -0.19 0.27 0.56 0.91 1.15 1.19
Ratio: Return / Deepest Drawdown 0.58 -0.10 0.12 0.19 0.27 0.35 0.46
% Positive Months details 50% 47% 58% 60% 65% 66% 66%
Positive Months 6 17 35 73 158 241 396
Negative Months 6 19 25 47 82 119 196
LONG TERM RETURNS
Inflation Adjusted:
Inflation Adjusted:
1Y 3Y 5Y 10Y 20Y 30Y MAX
Best 10 Years Return (%) - Annualized 2.99 6.18 8.13 12.32
Worst 10 Years Return (%) - Annualized 2.53 2.53 2.53
Best 10 Years Return (%) - Annualized 0.67 4.81 6.06 9.66
Worst 10 Years Return (%) - Annualized 0.28 0.28 0.28
ROLLING PERIODS
Inflation Adjusted:
Inflation Adjusted:
1Y 3Y 5Y 10Y 20Y 30Y MAX
Over the latest 30Y
Best Rolling Return (%) - Annualized 21.90 14.45 11.64 8.13 6.95 5.35
Worst Rolling Return (%) - Annualized -14.49 -2.68 1.25 2.53 3.84
% Positive Periods 89% 94% 100% 100% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 86.33 29.13 20.03 10.65 6.27 6.34
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - 0.33 1.86 3.88
WR calculated based on initial capital | Monthly withdrawals adjusted for inflation | Credits: BestRetirementPortfolio.com
Best Rolling Return (%) - Annualized 20.11 12.52 9.78 6.06 5.09 3.21
Worst Rolling Return (%) - Annualized -21.91 -8.02 -2.08 0.28 1.68
% Positive Periods 79% 88% 91% 100% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 86.33 29.13 20.03 10.65 6.27 6.34
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - 0.33 1.86 3.88
WR calculated based on initial capital | Monthly withdrawals adjusted for inflation | Credits: BestRetirementPortfolio.com
Over all the available data source (Jan 1975 - Apr 2024)
Best Rolling Return (%) - Annualized 35.50 19.56 16.77 12.32 11.37 8.97
Worst Rolling Return (%) - Annualized -14.49 -2.68 1.25 2.53 3.84 4.99
% Positive Periods 87% 95% 100% 100% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 86.33 29.13 18.24 10.36 6.27 5.90
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - 0.33 1.86 3.38
WR calculated based on initial capital | Monthly withdrawals adjusted for inflation | Credits: BestRetirementPortfolio.com
Best Rolling Return (%) - Annualized 32.04 16.67 14.10 9.66 8.54 6.51
Worst Rolling Return (%) - Annualized -21.91 -8.02 -2.99 0.28 1.68 2.85
% Positive Periods 75% 86% 90% 100% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 86.33 29.13 18.24 10.36 6.27 5.90
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - 0.33 1.86 3.38
WR calculated based on initial capital | Monthly withdrawals adjusted for inflation | Credits: BestRetirementPortfolio.com
Terms and Definitions
  • Annualized Portfolio Return: it's the annualized geometric mean return of the portfolio.
  • Deepest/Longest Drawdown: a drawdown refers to the decline in value from a relative peak value to a relative trough. The deepest (or maximum) drawdown is the maximum observed loss from a peak to a trough of a portfolio before a new peak is attained. The longest drawdown is the period observed from a peak to the subsequent peak with the greatest duration.
  • Longest negative period: it's the maximum period for which an overall negative return has been observed.
  • Standard Deviation: it's a measure of the dispersion of returns around the mean.
  • Sharpe Ratio: it's a measure of risk-adjusted performance of the portfolio. It's calculated by dividing the excess return of the portfolio over the risk-free rate by the portfolio standard deviation. The risk-free rate here considered is the 1-3 Mth T-Bill return.
  • Sortino Ratio: another measure of risk-adjusted performance of the portfolio. It's a modification of the Sharpe Ratio (same formula but the denominator is the portfolio downside standard deviation).
  • Ulcer Index: it's a measure of downside risk that quantifies the depth and duration of drawdowns in an investment portfolio.
  • Best/Worst 10Y returns: the best and the worst 10-year return over a time frame.
  • Rolling Returns: N-year returns over a time frame, calculated over all the available data source (best, worst, % of positive returns). Each rolling period, longer than the longest negative period, yielded a non-negative minimum return.
  • Safe Withdrawal Rate (SWR): it's the percentage of the initial portfolio balance that can be withdrawn at the beginning of each month with inflation adjustment, without the portfolio running out of money in any case (money amount withdrawal).
    For instance: Your initial invested capital is 100.000$; withdrawal rate (annualized) is 4%. This means that, in the first month, you will withdraw 100.000 * 4% * 1/12 = 333.33$. The second month, you’ll withdraw 333.33$ plus the inflation monthly rate. You’ll continue adjusting your withdraw monthly for inflation.
  • Perpetual Withdrawal Rate (PWR): it's the percentage of the initial portfolio balance that can be withdrawn at the beginning of each month with inflation adjustment, preserving the original invested capital, adjusted for inflation too.

Portfolio Components Correlation

Correlation measures to what degree the returns of the two assets move in relation to each other.

Correlation coefficient is a numerical value between -1 and +1. If one variable goes up by a certain amount, the correlation coefficient indicates which way the other variable moves and by how much.
Asset correlations are calculated based on monthly returns.
COMPONENTS MONTHLY CORRELATIONS
Monthly correlations as of 30 April 2024
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If you want to learn more about historical correlations, you can find out here how the main asset class are correlated to each other.

Drawdowns

A drawdown refers to the decline in value from a relative peak value to a relative trough. A maximum drawdown is the maximum observed loss from a peak to a trough of a portfolio before a new peak is attained.

STOCKS/BONDS 20/80 TO EUR BOND HEDGED PORTFOLIO
Drawdown periods
Drawdown periods - Inflation Adjusted
Data Source: 1 May 1994 - 30 April 2024 (30 Years)
Data Source: 1 January 1975 - 30 April 2024 (~49 years)
Inflation Adjusted:
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Rolling Returns

( more details)

A rolling return is a measure of investment performance that calculates the return of an investment over a set period of time, with the starting date rolling forward. This approach can provide a more accurate representation of the investment's historical performance and helps investors to evaluate the investment's consistency over time.

STOCKS/BONDS 20/80 TO EUR BOND HEDGED PORTFOLIO
Annualized Rolling Returns
Annualized Rolling Returns - Inflation Adjusted
Data Source: 1 May 1994 - 30 April 2024 (30 Years)
Data Source: 1 January 1975 - 30 April 2024 (~49 years)
Inflation Adjusted:

If you need a deeper detail about rolling returns, please refer to the Stocks/Bonds 20/80 To EUR Bond Hedged Portfolio: Rolling Returns page.

Seasonality

In which months is it better to invest in Stocks/Bonds 20/80 To EUR Bond Hedged Portfolio?

Both the Average Return and the Gain Frequency (Win %) are useful to get an idea of what happened in the past.
For further information about the seasonality, check the Asset Class Seasonality page.
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Monthly Returns

This section provides a visual/tabular representation of the performance variability in the Stocks/Bonds 20/80 To EUR Bond Hedged Portfolio over time. It illustrates the distribution of monthly returns, showcasing the range and frequency of positive and negative returns.

STOCKS/BONDS 20/80 TO EUR BOND HEDGED PORTFOLIO
Monthly Returns Distribution
Data Source: 1 May 1994 - 30 April 2024 (30 Years)
Data Source: 1 January 1975 - 30 April 2024 (~49 years)
241 Positive Months (67%) - 119 Negative Months (33%)
396 Positive Months (67%) - 196 Negative Months (33%)
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(Scroll down to see all data)
Investment Returns, up to February 2024, have been derived using the historical series of equivalent ETFs / Assets, instead of the actual ETFs of the portfolio.
You can find additional information on extended Data Sources here.

Returns are calculated based on the performance of the original US asset, adjusted for actual currency exchange rates.
Hedged returns are calculated taking into account the interest rate differentials of the countries. It is assumed that hedged instruments have an additional expense ratio of 0.25% (yearly).

In particular, the series derived from equivalent datasets are:
  • XD9U.DE - Xtrackers MSCI USA (XD9U.DE), up to May 2014
  • CEBW.DE - iShares US Aggregate Bond EUR Hedged (CEBW.DE), up to February 2024
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