40/40/20 Portfolio

The chart shows the growth of an initial investment of $10,000 in 40/40/20 Portfolio, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends. The portfolio is rebalanced when any position deviates by more than 20.0% from its target allocation.

Based on dividend-adjusted daily data since Jun 11, 2020, 40/40/20 Portfolio's average daily return is +0.03%, while the average monthly return is +0.70%. At this rate, an investment would double in approximately 8.3 years.

Historically, 67% of months were positive and 33% were negative. The best month was Nov 2020 with a return of +5.7%, while the worst month was Sep 2022 at -5.8%. The longest winning streak lasted 11 consecutive months, and the longest losing streak was 3 months.

On a daily basis, 40/40/20 Portfolio closed higher 55% of trading days. The best single day was Apr 9, 2025 with a return of +4.1%, while the worst single day was Apr 4, 2025 at -2.9%.

40/40/20 Portfolio has an annualized alpha of 1.83%, beta of 0.43, and R2 of 0.81 versus S&P 500 Index. Calculated based on daily prices since June 11, 2020.

• This portfolio participated in 53.52% of S&P 500 Index downside but only 46.80% of its upside - more exposed to losses than it benefited from rallies.
• Beta of 0.43 indicates this portfolio moves significantly less than S&P 500 Index - a genuinely defensive profile with reduced participation in both market rallies and downturns.

40/40/20 Portfolio has an expense ratio of 0.27%, which is considered low. Below, you can find the expense ratios of the portfolio's funds side by side and easily compare their relative costs.

40/40/20 Portfolio ranks 48 for risk / return — on par with similar Portfolios. You're getting a typical balance of risk and reward. Not a standout, but not a red flag either — a reasonable choice if other factors align with your goals.

The table below presents risk-adjusted performance metrics for 40/40/20 Portfolio and compares them with S&P 500 Index.

The Sharpe ratio helps investors understand how much return they're getting for the level of risk taken. A higher Sharpe ratio indicates better risk-adjusted performance, meaning more reward for each unit of risk.

40/40/20 Portfolio Sharpe ratios as of Jun 6, 2026 (values are recalculated daily):

• 1-Year: 2.33
• 5-Year: 0.83
• All Time: 1.05

These values reflect how efficiently the investment has delivered returns relative to its volatility over different time periods. All figures are annualized and based on daily total returns (including price changes and dividends).

Compared to the broad market, where average Sharpe ratios range from 1.64 to 2.53, this portfolio's current Sharpe ratio falls between the 25th and 75th percentiles. This indicates that its risk-adjusted performance is in line with the majority of portfolios, suggesting a balanced approach to risk and return—likely suitable for a wide range of investors.

The chart below shows the rolling Sharpe ratio of 40/40/20 Portfolio compared to the selected benchmark. This view highlights how the investment's risk-adjusted performance has changed over time.

40/40/20 Portfolio provided a 2.75% dividend yield over the last twelve months.

The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.

The table below displays the maximum drawdowns of the 40/40/20 Portfolio. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.

The maximum drawdown for the 40/40/20 Portfolio was 15.77%, occurring on Oct 14, 2022. Recovery took 301 trading sessions.

The current 40/40/20 Portfolio drawdown is 2.57%.

The chart below shows the rolling one-month volatility.