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40/60

Last updated Sep 21, 2023

Asset Allocation


ANGL 20%SPSB 20%RSP 20%SCHD 20%VTV 20%BondBondEquityEquity
PositionCategory/SectorWeight
ANGL
VanEck Vectors Fallen Angel High Yield Bond ETF
High Yield Bonds20%
SPSB
SPDR Portfolio Short Term Corporate Bond ETF
Corporate Bonds20%
RSP
Invesco S&P 500® Equal Weight ETF
Large Cap Blend Equities20%
SCHD
Schwab US Dividend Equity ETF
Large Cap Growth Equities, Dividend20%
VTV
Vanguard Value ETF
Large Cap Value Equities20%

Performance

The chart shows the growth of an initial investment of $10,000 in 40/60, 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 Quarterly


0.00%5.00%10.00%15.00%AprilMayJuneJulyAugustSeptember
4.41%
10.86%
40/60
Benchmark (^GSPC)
Portfolio components

Returns

As of Sep 21, 2023, the 40/60 returned 2.74% Year-To-Date and 7.90% of annualized return in the last 10 years.


1 month6 monthsYear-To-Date1 year5 years (annualized)10 years (annualized)
Benchmark0.33%11.48%14.66%16.16%8.51%9.99%
40/600.47%4.92%2.74%8.30%6.54%7.93%
ANGL
VanEck Vectors Fallen Angel High Yield Bond ETF
0.95%3.19%5.15%7.01%3.86%5.82%
RSP
Invesco S&P 500® Equal Weight ETF
-0.24%6.99%4.56%10.15%8.14%10.14%
SPSB
SPDR Portfolio Short Term Corporate Bond ETF
0.30%0.79%2.26%3.02%1.68%1.49%
SCHD
Schwab US Dividend Equity ETF
0.24%5.02%-1.48%8.21%9.83%11.23%
VTV
Vanguard Value ETF
1.08%8.83%3.07%12.39%7.59%10.02%

Asset Correlations Table

The table below shows the correlation coefficients between the assets in the portfolio.

SPSBANGLSCHDVTVRSP
SPSB1.000.230.060.040.08
ANGL0.231.000.450.460.49
SCHD0.060.451.000.950.92
VTV0.040.460.951.000.95
RSP0.080.490.920.951.00

Sharpe Ratio

The current 40/60 Sharpe ratio is 0.65. A Sharpe ratio between 0 and 1.0 is considered sub-optimal.

-1.000.001.002.003.004.000.65

The Sharpe ratio of 40/60 lies between the 25th and 75th percentiles. It indicates that the portfolio's risk-adjusted performance is in line with the majority of portfolios. This suggests a balanced approach to risk and return, which might be suitable for a broad range of investors.


Rolling 12-month Sharpe Ratio-0.500.000.501.00AprilMayJuneJulyAugustSeptember
0.65
0.82
40/60
Benchmark (^GSPC)
Portfolio components

Dividend yield

40/60 granted a 3.44% dividend yield in the last twelve months.


TTM20222021202020192018201720162015201420132012
40/603.44%2.95%2.40%3.04%3.42%3.80%3.34%3.56%3.85%4.01%3.91%3.97%
ANGL
VanEck Vectors Fallen Angel High Yield Bond ETF
5.19%4.89%4.22%5.26%6.16%7.50%6.95%8.04%8.62%10.64%10.19%8.42%
RSP
Invesco S&P 500® Equal Weight ETF
1.75%1.84%1.32%1.72%1.81%2.20%1.69%1.35%1.94%1.69%1.50%1.96%
SPSB
SPDR Portfolio Short Term Corporate Bond ETF
3.47%1.97%1.25%2.06%2.99%2.62%2.21%1.91%1.69%1.48%1.70%1.90%
SCHD
Schwab US Dividend Equity ETF
3.61%3.48%2.96%3.46%3.39%3.60%3.18%3.59%3.81%3.47%3.34%3.98%
VTV
Vanguard Value ETF
3.18%2.55%2.23%2.72%2.74%3.07%2.65%2.89%3.16%2.76%2.82%3.57%

Expense Ratio

The 40/60 features an expense ratio of 0.14%, falling within the medium range. Below you can find the expense ratios of portfolio funds side-by-side and effortlessly compare their relative costs.


0.35%
0.00%2.15%
0.20%
0.00%2.15%
0.07%
0.00%2.15%
0.06%
0.00%2.15%
0.04%
0.00%2.15%

Risk-Adjusted Performance

This table presents a comparison of risk-adjusted performance metrics for positions. Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.


Sharpe ratioSortino ratioOmega ratioCalmar ratioUlcer Index
ANGL
VanEck Vectors Fallen Angel High Yield Bond ETF
0.58
RSP
Invesco S&P 500® Equal Weight ETF
0.37
SPSB
SPDR Portfolio Short Term Corporate Bond ETF
1.14
SCHD
Schwab US Dividend Equity ETF
0.36
VTV
Vanguard Value ETF
0.73

Drawdowns Chart

The Drawdowns chart displays portfolio losses from any high point along the way.


-15.00%-10.00%-5.00%AprilMayJuneJulyAugustSeptember
-4.78%
-8.22%
40/60
Benchmark (^GSPC)
Portfolio components

Worst Drawdowns

The table below shows the maximum drawdowns of the 40/60. A maximum drawdown is an indicator of risk. It shows a reduction in portfolio value from its maximum due to a series of losing trades.

The maximum drawdown since January 2010 for the 40/60 is 28.34%, recorded on Mar 23, 2020. It took 141 trading sessions for the portfolio to recover.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-28.34%Feb 13, 202027Mar 23, 2020141Oct 12, 2020168
-15.26%Jan 5, 2022186Sep 30, 2022
-12.43%Sep 24, 201864Dec 24, 201866Apr 1, 2019130
-12.06%Aug 5, 201317Aug 27, 2013189May 29, 2014206
-10.08%May 22, 2015167Jan 20, 201658Apr 13, 2016225

Volatility Chart

The current 40/60 volatility is 1.80%, representing the average percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.


2.00%3.00%4.00%5.00%AprilMayJuneJulyAugustSeptember
1.80%
3.27%
40/60
Benchmark (^GSPC)
Portfolio components