Stocks/Bonds 40/60 To EUR Hedged Portfolio: ETF allocation and returns

Data Source: from January 1950 to April 2024 (~74 years)
Consolidated Returns as of 30 April 2024
Currency: EUR

The Stocks/Bonds 40/60 To EUR Hedged Portfolio is a Medium Risk portfolio and can be implemented with 2 ETFs.

It's exposed for 40% on the Stock Market.

In the last 30 Years, the Stocks/Bonds 40/60 To EUR Hedged Portfolio obtained a 6.37% compound annual return, with a 6.84% standard deviation.

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Asset Allocation and ETFs

The Stocks/Bonds 40/60 To EUR Hedged Portfolio has the following asset allocation:

40% Stocks
60% Fixed Income
0% Commodities

The Stocks/Bonds 40/60 To EUR Hedged Portfolio can be implemented with the following ETFs:

Weight
(%)
Investment Themes (Orig.Currency) ETF
Ticker
ETF
Currency
ETF Name
40.00 Equity, U.S., Large Cap (USD)
XD9E.DE
EUR
Hedged
Xtrackers MSCI USA EUR Hedged
60.00 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 40/60 To EUR 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 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 40/60 TO EUR 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
(~74Y)
Stocks/Bonds 40/60 To EUR Hedged Portfolio n.a. n.a. -3.16 11.13 6.68 3.51 4.11 6.37 7.65
Euro Inflation Adjusted return -3.72 9.80 4.20 -0.19 1.76 4.21 4.87
Components
XD9E.DE
EUR
Hedged
Xtrackers MSCI USA EUR Hedged n.a. - n.a. -3.27 22.22 22.02 10.58 10.13 9.54 10.91
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 4.87
Returns over 1 year are annualized | Available data source: since Jan 1950
(*) 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 6.37€, with a total return of 537.42% (6.37% annualized).

The Inflation Adjusted Capital now would be 3.45€, with a net total return of 244.90% (4.21% annualized).
An investment of 1€, since January 1950, now would be worth 240.49€, with a total return of 23949.04% (7.65% annualized).

The Inflation Adjusted Capital now would be 34.24€, with a net total return of 3323.58% (4.87% annualized).

Portfolio Metrics as of Apr 30, 2024

Metrics of Stocks/Bonds 40/60 To EUR 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 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 40/60 TO EUR HEDGED PORTFOLIO
Advanced Metrics
Data Source: 1 January 1950 - 30 April 2024 (~74 years)
Swipe left to see all data
Metrics as of Apr 30, 2024
1M 3M 6M 1Y 3Y 5Y 10Y 20Y 30Y MAX
(~74Y)
Investment Return (%) -3.16 -0.66 11.13 6.68 -0.79 3.51 4.11 5.30 6.37 7.65
Infl. Adjusted Return (%) details -3.72 -2.59 9.80 4.20 -6.02 -0.19 1.76 3.13 4.21 4.87
Euro Inflation (%) 0.58 1.98 1.21 2.38 5.57 3.70 2.30 2.11 2.07 2.66
Returns / Inflation rates over 1 year are annualized.
DRAWDOWN
Inflation Adjusted:
Inflation Adjusted:
1Y 3Y 5Y 10Y 20Y 30Y MAX
Deepest Drawdown Depth (%) -7.02 -19.38 -19.38 -19.38 -19.38 -19.38 -19.38
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 9 9 9 9 9 9
Bottom (yyyy mm) 2023 10 2022 09 2022 09 2022 09 2022 09 2022 09 2022 09
Bottom to End (# months) 2 19 19 19 19 19 19
End (yyyy mm) 2023 12 - - - - - -
Longest Drawdown Depth (%)
same as
deepest

same as
deepest

same as
deepest

same as
deepest

same as
deepest
-8.15 -8.15
Start to Recovery (# months) details 33 33
Start (yyyy mm) 2023 08 2022 01 2022 01 2022 01 2022 01 2000 09 2000 09
Start to Bottom (# months) 3 9 9 9 9 25 25
Bottom (yyyy mm) 2023 10 2022 09 2022 09 2022 09 2022 09 2002 09 2002 09
Bottom to End (# months) 2 19 19 19 19 8 8
End (yyyy mm) 2023 12 - - - - 2003 05 2003 05
Longest negative period (# months) details 6 36* 45 45 53 60 60
Period Start (yyyy mm) 2023 05 2021 05 2020 02 2020 02 2004 10 2004 03 2004 03
Period End (yyyy mm) 2023 10 2024 04 2023 10 2023 10 2009 02 2009 02 2009 02
Annualized Return (%) -7.86 -0.79 -0.17 -0.17 -0.17 -0.07 -0.07
Drawdowns / Negative periods marked with * are in progress
Deepest Drawdown Depth (%) -7.90 -27.29 -27.29 -27.29 -27.29 -27.29 -27.75
Start to Recovery (# months) details 5 32* 32* 32* 32* 32* 121
Start (yyyy mm) 2023 08 2021 09 2021 09 2021 09 2021 09 2021 09 1973 01
Start to Bottom (# months) 3 26 26 26 26 26 21
Bottom (yyyy mm) 2023 10 2023 10 2023 10 2023 10 2023 10 2023 10 1974 09
Bottom to End (# months) 2 6 6 6 6 6 100
End (yyyy mm) 2023 12 - - - - - 1983 01
Longest Drawdown Depth (%)
same as
deepest

same as
deepest

same as
deepest

same as
deepest

same as
deepest
-12.34
same as
deepest
Start to Recovery (# months) details 39
Start (yyyy mm) 2023 08 2021 09 2021 09 2021 09 2021 09 2000 09 1973 01
Start to Bottom (# months) 3 26 26 26 26 25 21
Bottom (yyyy mm) 2023 10 2023 10 2023 10 2023 10 2023 10 2002 09 1974 09
Bottom to End (# months) 2 6 6 6 6 14 100
End (yyyy mm) 2023 12 - - - - 2003 11 1983 01
Longest negative period (# months) details 6 36* 60* 104 104 121 216
Period Start (yyyy mm) 2023 05 2021 05 2019 05 2015 03 2015 03 1999 02 1964 07
Period End (yyyy mm) 2023 10 2024 04 2024 04 2023 10 2023 10 2009 02 1982 06
Annualized Return (%) -9.95 -6.02 -0.19 -0.04 -0.04 -0.05 -0.06
Drawdowns / Negative periods marked with * are in progress
RISK INDICATORS
1Y 3Y 5Y 10Y 20Y 30Y MAX
Standard Deviation (%) 10.03 10.08 9.37 7.48 6.92 6.84 7.26
Sharpe Ratio 0.14 -0.34 0.17 0.38 0.57 0.60 0.50
Sortino Ratio 0.21 -0.47 0.23 0.51 0.75 0.79 0.69
Ulcer Index 2.51 11.19 8.80 6.35 5.23 4.52 4.03
Ratio: Return / Standard Deviation 0.67 -0.08 0.37 0.55 0.77 0.93 1.05
Ratio: Return / Deepest Drawdown 0.95 -0.04 0.18 0.21 0.27 0.33 0.39
% Positive Months details 58% 55% 63% 65% 67% 67% 65%
Positive Months 7 20 38 79 163 243 582
Negative Months 5 16 22 41 77 117 310
LONG TERM RETURNS
Inflation Adjusted:
Inflation Adjusted:
1Y 3Y 5Y 10Y 20Y 30Y MAX
Best 10 Years Return (%) - Annualized 4.11 8.48 9.07 13.55
Worst 10 Years Return (%) - Annualized 3.46 2.36 2.36
Best 10 Years Return (%) - Annualized 1.76 7.14 7.14 10.57
Worst 10 Years Return (%) - Annualized 1.20 0.25 -2.07
ROLLING PERIODS
Inflation Adjusted:
Inflation Adjusted:
1Y 3Y 5Y 10Y 20Y 30Y MAX
Over the latest 30Y
Best Rolling Return (%) - Annualized 26.33 16.88 13.98 9.07 7.75 6.37
Worst Rolling Return (%) - Annualized -17.65 -2.88 -0.07 2.36 4.95
% Positive Periods 85% 95% 99% 100% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 83.76 28.86 19.44 10.34 6.27 6.99
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - 0.27 2.99 4.96
WR calculated based on initial capital | Monthly withdrawals adjusted for inflation | Credits: BestRetirementPortfolio.com
Best Rolling Return (%) - Annualized 25.26 14.70 12.08 7.14 5.76 4.21
Worst Rolling Return (%) - Annualized -25.27 -6.63 -2.16 0.25 2.76
% Positive Periods 78% 84% 93% 100% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 83.76 28.86 19.44 10.34 6.27 6.99
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - 0.27 2.99 4.96
WR calculated based on initial capital | Monthly withdrawals adjusted for inflation | Credits: BestRetirementPortfolio.com
Over all the available data source (Jan 1950 - Apr 2024)
Best Rolling Return (%) - Annualized 38.78 20.28 16.78 13.55 11.89 9.63
Worst Rolling Return (%) - Annualized -17.65 -3.07 -0.07 2.36 4.60 5.92
% Positive Periods 84% 96% 99% 100% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 83.76 28.30 17.46 8.79 5.06 4.19
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - - 0.59 2.74
WR calculated based on initial capital | Monthly withdrawals adjusted for inflation | Credits: BestRetirementPortfolio.com
Best Rolling Return (%) - Annualized 35.23 18.35 15.04 10.57 9.04 7.10
Worst Rolling Return (%) - Annualized -25.27 -8.97 -3.24 -2.07 0.52 2.99
% Positive Periods 75% 85% 87% 92% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 83.76 28.30 17.46 8.79 5.06 4.19
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - - 0.59 2.74
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 40/60 TO EUR HEDGED PORTFOLIO
Drawdown periods
Drawdown periods - Inflation Adjusted
Data Source: 1 May 1994 - 30 April 2024 (30 Years)
Data Source: 1 January 1950 - 30 April 2024 (~74 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 40/60 TO EUR HEDGED PORTFOLIO
Annualized Rolling Returns
Annualized Rolling Returns - Inflation Adjusted
Data Source: 1 May 1994 - 30 April 2024 (30 Years)
Data Source: 1 January 1950 - 30 April 2024 (~74 years)
Inflation Adjusted:

If you need a deeper detail about rolling returns, please refer to the Stocks/Bonds 40/60 To EUR Hedged Portfolio: Rolling Returns page.

Seasonality

In which months is it better to invest in Stocks/Bonds 40/60 To EUR 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 40/60 To EUR Hedged Portfolio over time. It illustrates the distribution of monthly returns, showcasing the range and frequency of positive and negative returns.

STOCKS/BONDS 40/60 TO EUR HEDGED PORTFOLIO
Monthly Returns Distribution
Data Source: 1 May 1994 - 30 April 2024 (30 Years)
Data Source: 1 January 1950 - 30 April 2024 (~74 years)
243 Positive Months (68%) - 117 Negative Months (33%)
582 Positive Months (65%) - 310 Negative Months (35%)
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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.

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:
  • XD9E.DE - Xtrackers MSCI USA EUR Hedged (XD9E.DE), up to April 2018
  • CEBW.DE - iShares US Aggregate Bond EUR Hedged (CEBW.DE), up to February 2024
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