Stocks/Bonds 60/40 ESG Portfolio: ETF allocation and returns

Data Source: from September 2005 to May 2023 (~18 years)
Consolidated Returns as of 31 May 2023
Live Update: Jun 02 2023
PORTFOLIO • LIVE PERFORMANCE (USD currency)
0.71%
1 Day
Jun 02 2023
1.44%
Current Month
June 2023

The Stocks/Bonds 60/40 ESG Portfolio is a High Risk portfolio and can be implemented with 2 ETFs.

It's exposed for 60% on the Stock Market.

In the last 15 Years, the Stocks/Bonds 60/40 ESG Portfolio obtained a 6.69% compound annual return, with a 11.55% standard deviation.

Asset Allocation and ETFs

The Stocks/Bonds 60/40 ESG Portfolio has the following asset allocation:

60% Stocks
40% Fixed Income
0% Commodities

The Stocks/Bonds 60/40 ESG Portfolio can be implemented with the following ETFs:

Weight (%) Ticker ETF Name Investment Themes
60.00
ESGV
Vanguard ESG U.S. Stock ETF Equity, U.S., Large Cap, Growth
40.00
NUBD
Nuveen ESG U.S. Aggregate Bond ETF Bond, U.S., All-Term

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 May 31, 2023

The Stocks/Bonds 60/40 ESG Portfolio guaranteed the following returns.

Portfolio returns are calculated in USD, assuming: June 2023 return is calculated on the hypothesis of a newly built portfolio, with the starting asset allocation.
STOCKS/BONDS 60/40 ESG PORTFOLIO
Consolidated returns as of 31 May 2023
Live Update: Jun 02 2023
Swipe left to see all data
    Chg (%) Return (%) Return (%) as of May 31, 2023
    1 Day Time ET(*) Jun 2023 1M 6M 1Y 5Y 10Y MAX
(~18Y)
Stocks/Bonds 60/40 ESG Portfolio 0.71 1.44 0.62 3.95 1.34 6.25 6.52 6.88
US Inflation Adjusted return 0.62 2.02 -2.36 2.35 3.74 4.29
Components
ESGV
Vanguard ESG U.S. Stock ETF 1.50 Jun 02 2023 2.51 1.75 5.02 3.48 9.37 9.62 8.50
NUBD
Nuveen ESG U.S. Aggregate Bond ETF -0.48 Jun 02 2023 -0.16 -1.18 1.72 -2.28 0.59 1.14 4.92
Returns over 1 year are annualized | Available data source: since Sep 2005
(*) Eastern Time (ET - America/New York)
US Inflation is updated to Apr 2023. Waiting for updates, inflation of May 2023 is set to 0%. Current inflation (annualized) is 1Y: 3.79% , 5Y: 3.81% , 10Y: 2.68%
Live update: World Markets and Indexes

In 2022, the Stocks/Bonds 60/40 ESG Portfolio granted a 1.62% dividend yield. If you are interested in getting periodic income, please refer to the Stocks/Bonds 60/40 ESG Portfolio: Dividend Yield page.

Portfolio Metrics as of May 31, 2023

Metrics of Stocks/Bonds 60/40 ESG Portfolio, updated as of 31 May 2023.

Portfolio metrics are calculated based on monthly returns, assuming:
STOCKS/BONDS 60/40 ESG PORTFOLIO
Portfolio Metrics
Data Source: 1 September 2005 - 31 May 2023 (~18 years)
Swipe left to see all data
Metrics as of May 31, 2023
1M 3M 6M 1Y 3Y 5Y 10Y MAX
(~18Y)
Portfolio Return (%) 0.62 4.64 3.95 1.34 5.47 6.25 6.52 6.88
US Inflation (%) 0.00 0.84 1.90 3.79 5.77 3.81 2.68 2.48
Infl. Adjusted Return (%) 0.62 3.77 2.02 -2.36 -0.28 2.35 3.74 4.29
Waiting for updates, inflation of May 2023 is temporarily set to 0%. Returns / Inflation rates over 1 year are annualized.
RISK INDICATORS
Standard Deviation (%) 15.28 12.77 12.33 10.02 10.79
Sharpe Ratio -0.12 0.35 0.40 0.57 0.27
Sortino Ratio -0.16 0.46 0.53 0.77 0.35
MAXIMUM DRAWDOWN
Drawdown Depth (%) -10.64 -22.44 -22.44 -22.44 -32.78
Start (yyyy mm) 2022 08 2022 01 2022 01 2022 01 2007 11
Bottom (yyyy mm) 2022 09 2022 09 2022 09 2022 09 2009 02
Start to Bottom (# months) 2 9 9 9 16
Start to Recovery (# months) in progress
10
> 17
> 17
> 17
29
ROLLING PERIOD RETURNS - Annualized
Best Return (%) 46.47 21.14 18.46 11.13
Worst Return (%) -30.16 -6.98 2.82 6.39
% Positive Periods 79% 94% 100% 100%
MONTHS
Positive 1 3 4 7 22 38 77 134
Negative 0 0 2 5 14 22 43 79
% Positive 100% 100% 67% 58% 61% 63% 64% 63%
WITHDRAWAL RATES (WR)
Safe WR (%) 37.05 22.75 13.25 8.09
Perpetual WR (%) 0.00 2.30 3.61 4.11
Terms and Definitions
  • Annualized Portfolio Return: it's the annualized geometric mean return of the portfolio
  • 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).
  • Maximum Drawdown: 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.
  • Rolling Returns: returns over a time frame (best, worst, % of positive returns).
  • Pos./Neg. Months: number of months with positive/negative return.
  • Safe Withdrawal Rate (SWR): it's the percentage of the original portfolio balance that can be withdrawn at the end of each year with inflation adjustment, without the portfolio running out of money (dollar amount withdrawal).
  • Perpetual Withdrawal Rate (PWR): it's the percentage of portfolio balance that can be withdrawn at the end of each year, while retaining the inflation adjusted portfolio balance (percentage withdrawal).

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 31 May 2023
Swipe left to see all data
Asset
ESGV
NUBD
ESGV
-
0.77
NUBD
0.77
-
Asset
ESGV
NUBD
ESGV
-
0.38
NUBD
0.38
-
Asset
ESGV
NUBD
ESGV
-
0.29
NUBD
0.29
-
Asset
ESGV
NUBD
ESGV
-
0.31
NUBD
0.31
-

If you want to learn more about historical correlations, you can find out here how the main asset class are correlated to each other.

Readings that may interest you

Capital Growth as of May 31, 2023

An investment of 1000$, since June 2008, now would be worth 2641.44$, with a total return of 164.14% (6.69% annualized).

The Inflation Adjusted Capital now would be 1886.26$, with a net total return of 88.63% (4.32% annualized).
An investment of 1000$, since September 2005, now would be worth 3255.21$, with a total return of 225.52% (6.88% annualized).

The Inflation Adjusted Capital now would be 2107.45$, with a net total return of 110.75% (4.29% annualized).

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 60/40 ESG PORTFOLIO
Drawdown periods
Updated to May 2023
Swipe left to see all data
Drawdown period
Recovery period
Total
Drawdown Start Bottom #Months End #Months #Months
-32.05% Jun 2008 Feb 2009 9 Mar 2010 13 22
-22.44% Jan 2022 Sep 2022 9 in progress 8 17
-14.77% May 2011 Sep 2011 5 Sep 2012 12 17
-10.57% Feb 2020 Mar 2020 2 Jun 2020 3 5
-10.20% Feb 2018 Dec 2018 11 Apr 2019 4 15
-8.11% Jun 2015 Jan 2016 8 Jul 2016 6 14
-7.23% May 2010 Jun 2010 2 Sep 2010 3 5
-3.85% Sep 2020 Oct 2020 2 Nov 2020 1 3
-3.74% Sep 2021 Sep 2021 1 Oct 2021 1 2
-3.32% May 2019 May 2019 1 Jun 2019 1 2
-3.12% Sep 2014 Sep 2014 1 Nov 2014 2 3
-2.38% Jul 2014 Jul 2014 1 Aug 2014 1 2
-2.36% Aug 2013 Aug 2013 1 Sep 2013 1 2
-1.69% Jun 2013 Jun 2013 1 Jul 2013 1 2
-1.48% Sep 2016 Oct 2016 2 Nov 2016 1 3
-1.33% Jan 2014 Jan 2014 1 Feb 2014 1 2
-0.58% Nov 2021 Nov 2021 1 Dec 2021 1 2
-0.50% Jan 2021 Jan 2021 1 Feb 2021 1 2
-0.42% Mar 2017 Mar 2017 1 Jun 2017 3 4
-0.40% Aug 2017 Aug 2017 1 Sep 2017 1 2
Swipe left to see all data
Drawdown period
Recovery period
Total
Drawdown Start Bottom #Months End #Months #Months
-32.78% Nov 2007 Feb 2009 16 Mar 2010 13 29
-22.44% Jan 2022 Sep 2022 9 in progress 8 17
-14.77% May 2011 Sep 2011 5 Sep 2012 12 17
-10.57% Feb 2020 Mar 2020 2 Jun 2020 3 5
-10.20% Feb 2018 Dec 2018 11 Apr 2019 4 15
-8.11% Jun 2015 Jan 2016 8 Jul 2016 6 14
-7.23% May 2010 Jun 2010 2 Sep 2010 3 5
-3.85% Sep 2020 Oct 2020 2 Nov 2020 1 3
-3.74% Sep 2021 Sep 2021 1 Oct 2021 1 2
-3.32% May 2019 May 2019 1 Jun 2019 1 2
-3.12% Sep 2014 Sep 2014 1 Nov 2014 2 3
-2.44% Oct 2005 Oct 2005 1 Dec 2005 2 3
-2.38% Jul 2014 Jul 2014 1 Aug 2014 1 2
-2.36% Aug 2013 Aug 2013 1 Sep 2013 1 2
-2.09% Jun 2007 Aug 2007 3 Oct 2007 2 5
-1.73% May 2006 May 2006 1 Jul 2006 2 3
-1.69% Jun 2013 Jun 2013 1 Jul 2013 1 2
-1.48% Sep 2016 Oct 2016 2 Nov 2016 1 3
-1.33% Jan 2014 Jan 2014 1 Feb 2014 1 2
-0.58% Nov 2021 Nov 2021 1 Dec 2021 1 2

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 60/40 ESG PORTFOLIO
Annualized Rolling Returns
Data Source: from September 2005 to May 2023
Swipe left to see all data
Rolling
Period		 Annualized Return (%) Negative
Periods
Average Latest Best Worst
1 Year
 7.53 1.34 46.47
Mar 2009 - Feb 2010 		-30.16
Mar 2008 - Feb 2009 		20.79%
2 Years
 7.51 -2.66 31.85
Mar 2009 - Feb 2011 		-15.77
Mar 2007 - Feb 2009 		13.68%
3 Years
 7.50 5.47 21.14
Mar 2009 - Feb 2012 		-6.98
Mar 2006 - Feb 2009 		6.18%
5 Years
 7.92 6.25 18.46
Mar 2009 - Feb 2014 		2.82
Jun 2007 - May 2012 		0.00%
7 Years
 8.04 5.90 13.49
Mar 2009 - Feb 2016 		4.92
Jul 2015 - Jun 2022 		0.00%
10 Years
 8.07 6.52 11.13
Mar 2009 - Feb 2019 		6.39
Jun 2007 - May 2017 		0.00%
15 Years
 7.36 6.69 8.37
Sep 2006 - Aug 2021 		5.87
Oct 2007 - Sep 2022 		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 Stocks/Bonds 60/40 ESG Portfolio: Rolling Returns page.

Seasonality

In which months is it better to invest in Stocks/Bonds 60/40 ESG 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.
Swipe left to see all data
Monthly Average Return (%) and Gain Frequency
Return (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average
Gain Frequency
1.40
60%
-1.18
40%
0.07
80%
1.50
80%
0.10
60%
0.64
60%
3.06
100%
0.60
60%
-2.70
20%
0.62
60%
3.02
80%
-0.30
60%
 Capital Growth on monthly avg returns
100
101.40
100.20
100.28
101.78
101.89
102.54
105.67
106.31
103.44
104.08
107.23
106.91
Best 6.0
2023 		2.1
2019 		3.1
2023 		7.9
2020 		3.5
2020 		4.7
2019 		6.5
2022 		4.1
2020 		0.7
2019 		4.5
2021 		7.2
2020 		2.8
2020
Worst -5.1
2022 		-3.9
2020 		-7.0
2020 		-7.5
2022 		-3.3
2019 		-5.2
2022 		1.3
2019 		-3.8
2022 		-7.1
2022 		-4.8
2018 		-0.6
2021 		-4.4
2018
Monthly Seasonality over the period Jun 2018 - May 2023
Swipe left to see all data
Monthly Average Return (%) and Gain Frequency
Return (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average
Gain Frequency
0.44
50%
-0.07
60%
0.51
60%
1.08
90%
0.49
80%
0.25
50%
1.99
80%
0.09
50%
-1.39
30%
1.17
70%
2.30
90%
-0.02
60%
 Capital Growth on monthly avg returns
100
100.44
100.37
100.88
101.97
102.47
102.72
104.76
104.86
103.40
104.61
107.02
107.00
Best 6.0
2023 		3.7
2015 		5.3
2016 		7.9
2020 		3.5
2020 		4.7
2019 		6.5
2022 		4.1
2020 		3.2
2013 		4.5
2021 		7.2
2020 		3.0
2013
Worst -5.1
2022 		-4.0
2018 		-7.0
2020 		-7.5
2022 		-3.3
2019 		-5.2
2022 		-2.4
2014 		-3.8
2022 		-7.1
2022 		-4.8
2018 		-0.6
2021 		-4.4
2018
Monthly Seasonality over the period Jun 2013 - May 2023
Swipe left to see all data
Monthly Average Return (%) and Gain Frequency
Return (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average
Gain Frequency
0.83
56%
0.16
61%
1.00
67%
1.74
89%
0.22
67%
-0.37
41%
1.68
71%
0.14
53%
-0.66
50%
0.41
67%
1.38
72%
0.70
61%
 Capital Growth on monthly avg returns
100
100.83
101.00
102.00
103.78
104.00
103.62
105.36
105.51
104.81
105.24
106.69
107.44
Best 6.0
2023 		3.7
2015 		5.7
2009 		9.8
2009 		5.1
2009 		4.7
2019 		7.2
2009 		4.1
2020 		6.5
2010 		7.8
2011 		7.2
2020 		4.8
2008
Worst -5.1
2022 		-6.6
2009 		-7.0
2020 		-7.5
2022 		-4.9
2010 		-5.9
2008 		-2.4
2014 		-4.7
2011 		-7.8
2008 		-12.7
2008 		-3.9
2008 		-4.4
2018
Monthly Seasonality over the period Sep 2005 - May 2023

Monthly/Yearly Returns

Stocks/Bonds 60/40 ESG Portfolio data source starts from September 2005: let's focus on monthly and yearly returns.

We are providing two different views:
  • Histogram: it shows the distribution of the returns recorded so far
  • Plain Table: it shows the detailed monthly and yearly returns
MONTHLY RETURNS HISTOGRAM
Sep 2005 - May 2023
134 Positive Months (63%) - 79 Negative Months (37%)
MONTHLY RETURNS TABLE
Sep 2005 - May 2023
(Scroll down to see all data)
Swipe left to see all data
Yearly Return(%)
Monthly Return(%)
Year Total Infl.Adj Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2023
 +8.32 +5.97 6.0 -2.3 3.1 0.8 0.6
2022
 -19.58 -24.46 -5.1 -2.4 0.6 -7.5 -0.3 -5.2 6.5 -3.8 -7.1 3.3 4.6 -4.0
2021
 +14.84 +7.29 -0.5 0.7 1.7 3.7 0.0 2.2 1.8 2.0 -3.7 4.5 -0.6 2.5
2020
 +18.27 +16.68 1.0 -3.9 -7.0 7.9 3.5 2.1 4.2 4.1 -2.4 -1.5 7.2 2.8
2019
 +23.31 +20.55 5.6 2.1 1.9 2.7 -3.3 4.7 1.3 -0.2 0.7 1.6 2.5 1.7
2018
 -9.29 -10.99 1.0 -4.0 0.0 0.6 0.2 -0.7 1.4 0.9 -0.9 -4.8 1.4 -4.4
2017
 +9.32 +7.06 1.4 1.0 -0.4 0.0 0.1 0.9 1.2 -0.4 2.0 0.7 2.0 0.5
2016
 +8.09 +5.90 -3.5 1.1 5.3 1.3 0.5 -1.5 2.7 1.0 -0.3 -1.2 1.6 1.0
2015
 +1.04 +0.31 -0.2 3.7 -0.1 1.1 1.4 -0.4 -1.0 -3.5 -2.1 4.1 1.3 -3.0
2014
 +7.55 +6.74 -1.3 3.4 -0.1 0.2 2.2 2.0 -2.4 3.2 -3.1 1.8 2.0 -0.2
2013
 +22.59 +20.78 4.9 1.3 2.6 0.3 1.3 -1.7 4.1 -2.4 3.2 3.1 1.1 3.0
2012
 +13.87 +11.93 4.8 3.5 0.5 -0.8 -4.3 2.6 0.9 2.4 1.7 0.2 0.7 1.2
2011
 -1.55 -4.38 1.6 2.8 0.4 3.3 -1.1 -1.9 -1.2 -4.7 -6.7 7.8 -0.9 -0.2
2010
 +15.13 +13.43 -1.3 2.7 3.6 2.1 -4.9 -2.5 4.0 -1.6 6.5 2.1 -0.1 4.1
2009
 +30.34 +26.88 -3.5 -6.6 5.7 9.8 5.1 -1.3 7.2 3.0 4.9 -2.0 3.5 2.3
2008
 -23.95 -24.02 -0.7 -1.1 -1.4 1.8 2.4 -5.9 -2.2 1.1 -7.8 -12.7 -3.9 4.8
2007
 +7.02 +2.83 1.7 1.7 0.0 2.5 2.2 -0.6 -1.3 -0.2 1.9 1.0 -1.3 -0.7
2006
 +12.43 +9.65 3.0 -0.5 1.6 1.5 -1.7 0.7 1.3 1.6 0.5 1.7 2.3 -0.1
2005
 - - 1.0 -2.4 1.5 1.5

Portofolio Returns, up to September 2018, 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:

  • ESGV - Vanguard ESG U.S. Stock ETF: simulated historical serie, up to September 2018
  • NUBD - Nuveen ESG U.S. Aggregate Bond ETF: simulated historical serie, up to October 2017

Portfolio efficiency

Compared to the Stocks/Bonds 60/40 ESG Portfolio, the following portfolios granted a higher return over 15 Years and a less severe drawdown at the same time.

Swipe left to see all data
15 Years Stats (%)
% Allocation
Portfolio Author Return▾ Dev.Std Drawdown Stocks Bonds Comm
Stocks/Bonds 60/40 +7.25 10.40 -27.68 60 40 0
Stocks/Bonds 60/40 Momentum +6.92 10.41 -29.72 60 40 0
Stocks/Bonds 60/40 ESG +6.69 11.55 -32.05 60 40 0

The following portfolios share asset allocation strategy and/or similar asset weights.

Swipe left to see all data
5 Years Stats (%)
% Allocation
Portfolio Author Return▾ Dev.Std Drawdown Stocks Bonds Comm
Stocks/Bonds 60/40 2x Leveraged +8.76 22.95 -39.53 60 40 0
Stocks/Bonds 60/40 with Bitcoin +7.87 13.12 -21.45 59 39 2
Stocks/Bonds 60/40 +6.52 12.42 -20.69 60 40 0
Stocks/Bonds 60/40 ESG +6.25 12.33 -22.44 60 40 0
Stocks/Bonds 60/40 Momentum +3.87 12.38 -24.21 60 40 0

Here's a list containing the Best Classic Portfolios, with the highest returns over 15 Years and High Risk categorization.

Swipe left to see all data
15 Years Stats (%)
% Allocation
Portfolio Author Return▾ Dev.Std Drawdown Stocks Bonds Comm
Simple Path to Wealth JL Collins +8.20 12.68 -34.95 75 25 0
Stocks/Bonds 60/40 +7.25 10.40 -27.68 60 40 0
Stocks/Bonds 60/40 Momentum +6.92 10.41 -29.72 60 40 0
Talmud Portfolio Roger Gibson +6.46 12.86 -37.81 66.7 33.3 0
Edge Select Moderately Aggressive Merrill Lynch +6.43 12.28 -35.12 69 31 0