Developed World ex-US 40/60 Portfolio: ETF allocation and returns

Data Source: from January 1985 to March 2024 (~39 years)
Consolidated Returns as of 31 March 2024
Live Update: Apr 17 2024
PORTFOLIO • LIVE PERFORMANCE (USD currency)
0.10%
1 Day
Apr 17 2024
2.42%
Current Month
April 2024

The Developed World ex-US 40/60 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 Developed World ex-US 40/60 Portfolio obtained a 5.41% compound annual return, with a 7.39% standard deviation.

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Asset Allocation and ETFs

The Developed World ex-US 40/60 Portfolio has the following asset allocation:

40% Stocks
60% Fixed Income
0% Commodities

The Developed World ex-US 40/60 Portfolio can be implemented with the following ETFs:

Weight
(%)
Investment Themes (Orig.Currency) ETF
Ticker
ETF
Currency
ETF Name
40.00 Equity, EAFE, Large Cap (USD)
VEA
USD Vanguard FTSE Developed Markets
60.00 Bond, Developed Markets, All-Term (USD)
BNDX
USD Vanguard Total International Bond

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 Mar 31, 2024

The Developed World ex-US 40/60 Portfolio guaranteed the following returns.

Returns are calculated in USD, assuming: April 2024 return is calculated on the hypothesis of a newly built portfolio, with the starting asset allocation.
DEVELOPED WORLD EX-US 40/60 PORTFOLIO
Consolidated returns as of 31 March 2024
Live Update: Apr 17 2024
Swipe left to see all data
  Chg (%) Return (%) Return (%) as of Mar 31, 2024
  1 Day Time ET(*) Apr 2024 1M 6M 1Y 5Y 10Y 30Y MAX
(~39Y)
Developed World ex-US 40/60 Portfolio 0.10 -2.42 2.15 10.71 9.11 3.20 3.50 5.41 7.66
US Inflation Adjusted return 1.77 8.96 5.45 -0.95 0.65 2.80 4.73
Components
VEA
USD Vanguard FTSE Developed Markets 0.06 Apr 17 2024 -4.56 3.66 16.93 15.02 7.39 5.05 5.15 8.04
BNDX
USD Vanguard Total International Bond 0.12 Apr 17 2024 -1.00 1.12 6.59 5.19 0.33 2.18 4.86 6.60
Returns over 1 year are annualized | Available data source: since Jan 1985
(*) Eastern Time (ET - America/New York)
US Inflation is updated to Mar 2024. Current inflation (annualized) is 1Y: 3.48% , 5Y: 4.19% , 10Y: 2.84% , 30Y: 2.54%

In 2023, the Developed World ex-US 40/60 Portfolio granted a 4.26% dividend yield. If you are interested in getting periodic income, please refer to the Developed World ex-US 40/60 Portfolio: Dividend Yield page.

Capital Growth as of Mar 31, 2024

An investment of 1$, since April 1994, now would be worth 4.86$, with a total return of 385.97% (5.41% annualized).

The Inflation Adjusted Capital now would be 2.29$, with a net total return of 128.95% (2.80% annualized).
An investment of 1$, since January 1985, now would be worth 18.14$, with a total return of 1714.08% (7.66% annualized).

The Inflation Adjusted Capital now would be 6.13$, with a net total return of 512.96% (4.73% annualized).

Portfolio Metrics as of Mar 31, 2024

Metrics of Developed World ex-US 40/60 Portfolio, updated as of 31 March 2024.

Metrics are calculated based on monthly returns, assuming:
DEVELOPED WORLD EX-US 40/60 PORTFOLIO
Advanced Metrics
Data Source: 1 January 1985 - 31 March 2024 (~39 years)
Swipe left to see all data
Metrics as of Mar 31, 2024
1M 3M 6M 1Y 3Y 5Y 10Y 20Y 30Y MAX
(~39Y)
Investment Return (%) 2.15 2.13 10.71 9.11 0.60 3.20 3.50 5.04 5.41 7.66
Infl. Adjusted Return (%) details 1.77 0.99 8.96 5.45 -4.76 -0.95 0.65 2.38 2.80 4.73
US Inflation (%) 0.38 1.13 1.61 3.48 5.63 4.19 2.84 2.59 2.54 2.80
Returns / Inflation rates over 1 year are annualized.
DRAWDOWN
Inflation Adjusted:
Inflation Adjusted:
1Y 3Y 5Y 10Y 20Y 30Y MAX
Deepest Drawdown Depth (%) -5.52 -19.57 -19.57 -19.57 -26.17 -26.17 -26.17
Start to Recovery (# months) details 5 31* 31* 31* 34 34 34
Start (yyyy mm) 2023 08 2021 09 2021 09 2021 09 2007 11 2007 11 2007 11
Start to Bottom (# months) 3 13 13 13 16 16 16
Bottom (yyyy mm) 2023 10 2022 09 2022 09 2022 09 2009 02 2009 02 2009 02
Bottom to End (# months) 2 18 18 18 18 18 18
End (yyyy mm) 2023 12 - - - 2010 08 2010 08 2010 08
Longest Drawdown Depth (%)
same as
deepest

same as
deepest

same as
deepest

same as
deepest

same as
deepest
-8.00 -8.00
Start to Recovery (# months) details 38 38
Start (yyyy mm) 2023 08 2021 09 2021 09 2021 09 2007 11 2000 04 2000 04
Start to Bottom (# months) 3 13 13 13 16 30 30
Bottom (yyyy mm) 2023 10 2022 09 2022 09 2022 09 2009 02 2002 09 2002 09
Bottom to End (# months) 2 18 18 18 18 8 8
End (yyyy mm) 2023 12 - - - 2010 08 2003 05 2003 05
Longest negative period (# months) details 7 35 49 59 59 59 59
Period Start (yyyy mm) 2023 04 2021 04 2019 10 2017 11 2017 11 2017 11 2017 11
Period End (yyyy mm) 2023 10 2024 02 2023 10 2022 09 2022 09 2022 09 2022 09
Annualized Return (%) -4.92 -0.11 -0.08 -0.21 -0.21 -0.21 -0.21
Drawdowns / Negative periods marked with * are in progress
Deepest Drawdown Depth (%) -6.41 -26.28 -26.28 -26.28 -27.39 -27.39 -27.39
Start to Recovery (# months) details 5 34* 34* 34* 36 36 36
Start (yyyy mm) 2023 08 2021 06 2021 06 2021 06 2007 11 2007 11 2007 11
Start to Bottom (# months) 3 16 16 16 16 16 16
Bottom (yyyy mm) 2023 10 2022 09 2022 09 2022 09 2009 02 2009 02 2009 02
Bottom to End (# months) 2 18 18 18 20 20 20
End (yyyy mm) 2023 12 - - - 2010 10 2010 10 2010 10
Longest Drawdown Depth (%)
same as
deepest

same as
deepest

same as
deepest

same as
deepest

same as
deepest
-13.03 -13.03
Start to Recovery (# months) details 47 47
Start (yyyy mm) 2023 08 2021 06 2021 06 2021 06 2007 11 2000 01 2000 01
Start to Bottom (# months) 3 16 16 16 16 33 33
Bottom (yyyy mm) 2023 10 2022 09 2022 09 2022 09 2009 02 2002 09 2002 09
Bottom to End (# months) 2 18 18 18 20 14 14
End (yyyy mm) 2023 12 - - - 2010 10 2003 11 2003 11
Longest negative period (# months) details 7 36* 60* 115 126 126 126
Period Start (yyyy mm) 2023 04 2021 04 2019 04 2014 04 2013 05 2013 05 2013 05
Period End (yyyy mm) 2023 10 2024 03 2024 03 2023 10 2023 10 2023 10 2023 10
Annualized Return (%) -7.96 -4.76 -0.95 -0.39 -0.11 -0.11 -0.11
Drawdowns / Negative periods marked with * are in progress
RISK INDICATORS
1Y 3Y 5Y 10Y 20Y 30Y MAX
Standard Deviation (%) 8.22 9.91 9.33 7.41 7.76 7.39 8.10
Sharpe Ratio 0.47 -0.19 0.14 0.31 0.47 0.43 0.45
Sortino Ratio 0.73 -0.28 0.19 0.42 0.63 0.57 0.63
Ulcer Index 2.01 9.16 7.34 5.43 5.91 5.08 4.71
Ratio: Return / Standard Deviation 1.11 0.06 0.34 0.47 0.65 0.73 0.95
Ratio: Return / Deepest Drawdown 1.65 0.03 0.16 0.18 0.19 0.21 0.29
% Positive Months details 58% 52% 56% 60% 62% 63% 63%
Positive Months 7 19 34 73 151 227 299
Negative Months 5 17 26 47 89 133 172
LONG TERM RETURNS
Inflation Adjusted:
Inflation Adjusted:
1Y 3Y 5Y 10Y 20Y 30Y MAX
Best 10 Years Return (%) - Annualized 3.50 7.79 8.45 13.99
Worst 10 Years Return (%) - Annualized 2.56 2.56 2.56
Best 10 Years Return (%) - Annualized 0.65 5.92 5.92 10.04
Worst 10 Years Return (%) - Annualized -0.22 -0.22 -0.22
ROLLING PERIODS
Inflation Adjusted:
Inflation Adjusted:
1Y 3Y 5Y 10Y 20Y 30Y MAX
Over the latest 30Y
Best Rolling Return (%) - Annualized 31.23 14.64 12.34 8.45 6.84 5.41
Worst Rolling Return (%) - Annualized -24.26 -3.96 0.02 2.56 4.82
% Positive Periods 79% 93% 100% 100% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 85.91 28.92 18.75 10.47 6.34 5.29
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - - 2.52 2.98
WR calculated based on initial capital | Monthly withdrawals adjusted for inflation | Credits: BestRetirementPortfolio.com
Best Rolling Return (%) - Annualized 28.46 11.96 9.93 5.92 4.49 2.80
Worst Rolling Return (%) - Annualized -24.44 -7.35 -3.61 -0.22 2.22
% Positive Periods 70% 81% 91% 99% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 85.91 28.92 18.75 10.47 6.34 5.29
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - - 2.52 2.98
WR calculated based on initial capital | Monthly withdrawals adjusted for inflation | Credits: BestRetirementPortfolio.com
Over all the available data source (Jan 1985 - Mar 2024)
Best Rolling Return (%) - Annualized 51.17 29.38 22.35 13.99 10.50 8.94
Worst Rolling Return (%) - Annualized -24.26 -3.96 0.02 2.56 4.82 5.01
% Positive Periods 81% 94% 100% 100% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 85.91 28.92 18.75 10.47 6.34 5.06
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - - 2.52 2.66
WR calculated based on initial capital | Monthly withdrawals adjusted for inflation | Credits: BestRetirementPortfolio.com
Best Rolling Return (%) - Annualized 48.81 25.60 18.02 10.04 7.25 6.05
Worst Rolling Return (%) - Annualized -24.44 -7.35 -3.61 -0.22 2.22 2.42
% Positive Periods 72% 84% 93% 99% 100% 100%
SWR - Safe Withdrawal Rate (%) - 100% Success - Annualized 85.91 28.92 18.75 10.47 6.34 5.06
PWR - Perpetual Withdrawal Rate (%) - 100% Success - Annualized - - - - 2.52 2.66
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 31 March 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.

DEVELOPED WORLD EX-US 40/60 PORTFOLIO
Drawdown periods
Drawdown periods - Inflation Adjusted
Data Source: 1 April 1994 - 31 March 2024 (30 Years)
Data Source: 1 January 1985 - 31 March 2024 (~39 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.

DEVELOPED WORLD EX-US 40/60 PORTFOLIO
Annualized Rolling Returns
Annualized Rolling Returns - Inflation Adjusted
Data Source: 1 April 1994 - 31 March 2024 (30 Years)
Data Source: 1 January 1985 - 31 March 2024 (~39 years)
Inflation Adjusted:

If you need a deeper detail about rolling returns, please refer to the Developed World ex-US 40/60 Portfolio: Rolling Returns page.

Seasonality

In which months is it better to invest in Developed World ex-US 40/60 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 Developed World ex-US 40/60 Portfolio over time. It illustrates the distribution of monthly returns, showcasing the range and frequency of positive and negative returns.

DEVELOPED WORLD EX-US 40/60 PORTFOLIO
Monthly Returns Distribution
Data Source: 1 April 1994 - 31 March 2024 (30 Years)
Data Source: 1 January 1985 - 31 March 2024 (~39 years)
227 Positive Months (63%) - 133 Negative Months (37%)
299 Positive Months (63%) - 172 Negative Months (37%)
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(Scroll down to see all data)
Investment Returns, up to December 2013, 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.

In particular, the series derived from equivalent datasets are:
  • VEA - Vanguard FTSE Developed Markets (VEA), up to December 2007
  • BNDX - Vanguard Total International Bond (BNDX), up to December 2013

Portfolio efficiency

The following portfolios granted a higher return over 30 Years and a less severe drawdown at the same time.

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In the following table, you can compare the current portfolio with a list of famous portfolios. Metrics are calculated over the last 30 Years.

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

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