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Stocks/Bonds 40/60 Leveraged Portfolio
Performance
Return for Risk
Dividends
Drawdowns
Volatility
Diversification

Stocks/Bonds 40/60 Leveraged Portfolio

Currency in USD · Last updated Jun 10, 2026

This is a leveraged alternative to the classical 40/60 Portfolio. It is implemented without borrowing money at the portfolio level but using leveraged ETFs. Note that leveraged ETFs may involve a substantial risk of loss and are not suitable for all investors.

Asset Allocation

TLT 30.00%TMF 15.00%UPRO 55.00%BondBondEquityEquity
PositionCategory/SectorTarget Weight
UPRO
ProShares UltraPro S&P 500		Leveraged Equities, S&P 500
55%
TLT
iShares 20+ Year Treasury Bond ETF		Government Bonds, Long-Term Bond
30%
TMF
Direxion Daily 20+ Year Treasury Bull 3X ETF		Leveraged Bonds
15%

S&P 500 Index

Portfolio Optimizer

Find the right asset allocation for Stocks/Bonds 40/60 Leveraged Portfolio

Add portfolio to the optimizer to find optimal allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

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Performance

Performance Chart

The chart shows the growth of an initial investment of $10,000 in Stocks/Bonds 40/60 Leveraged 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 Every 3 months.

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Returns By Period

As of Jun 10, 2026, the Stocks/Bonds 40/60 Leveraged Portfolio returned 8.55% Year-To-Date and 16.64% of annualized return in the last 10 years.

Position1D1MYTD6M1Y3Y*5Y*10Y*
Benchmark
S&P 500 Index
-1.62%-1.97%6.16%5.52%20.34%19.12%11.34%13.24%
Portfolio
Stocks/Bonds 40/60 Leveraged Portfolio
-3.31%-4.77%8.55%6.36%32.32%21.70%5.03%16.64%
Portfolio components:
TLT
iShares 20+ Year Treasury Bond ETF		-0.28%-0.40%-0.77%-1.68%3.34%-1.95%-6.73%-1.82%
TMF
Direxion Daily 20+ Year Treasury Bull 3X ETF		-1.04%-2.20%-7.82%-10.72%-3.38%-21.12%-31.49%-16.99%
UPRO
ProShares UltraPro S&P 500		-4.77%-6.71%13.15%10.52%54.92%45.95%19.84%28.57%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Monthly Returns

Based on dividend-adjusted daily data since Jun 25, 2009, Stocks/Bonds 40/60 Leveraged Portfolio's average daily return is +0.10%, while the average monthly return is +2.00%. At this rate, an investment would double in approximately 2.9 years.

Historically, 66% of months were positive and 34% were negative. The best month was Nov 2023 with a return of +22.6%, while the worst month was Sep 2022 at -21.3%. The longest winning streak lasted 10 consecutive months, and the longest losing streak was 3 months.

On a daily basis, Stocks/Bonds 40/60 Leveraged Portfolio closed higher 55% of trading days. The best single day was Apr 9, 2025 with a return of +13.6%, while the worst single day was Mar 18, 2020 at -11.8%.

JanFebMarAprMayJunJulAugSepOctNovDecTotal
20261.65%1.28%-11.28%18.22%10.12%-8.73%8.55%
20253.80%1.24%-10.48%-6.02%7.04%10.51%2.20%2.63%8.08%4.07%-0.35%-2.51%19.87%
20240.01%6.57%5.74%-11.97%9.68%6.54%3.46%4.13%4.14%-6.38%10.98%-9.12%22.80%
202315.59%-8.66%8.54%2.05%-2.51%10.85%2.90%-6.08%-13.83%-8.60%22.62%13.69%34.12%
2022-11.66%-6.50%0.75%-20.68%-3.01%-14.15%17.20%-11.16%-21.28%7.90%13.24%-12.95%-52.08%
2021-4.75%0.26%4.53%10.65%0.75%6.96%6.57%4.63%-10.15%13.68%0.26%5.85%43.86%

Benchmark Metrics

Stocks/Bonds 40/60 Leveraged Portfolio has an annualized alpha of 6.56%, beta of 1.28, and R2 of 0.74 versus S&P 500 Index. Calculated based on daily prices since June 25, 2009.

  • This portfolio captured 190.26% of S&P 500 Index gains and 144.04% of its losses - amplifying both gains and losses, but participating more in upside than downside.
  • This portfolio generated an annualized alpha of 6.56% versus S&P 500 Index - delivering returns beyond what market exposure alone would predict.
Alpha
6.56%
Beta
1.28
R²
0.74
Upside Capture
190.26%
Downside Capture
144.04%
See how alpha, beta & R² have trended over time →

Expense Ratio

Stocks/Bonds 40/60 Leveraged Portfolio has an expense ratio of 0.69%, placing it in the medium range. Below, you can find the expense ratios of the portfolio's funds side by side and easily compare their relative costs.

TMF
Direxion Daily 20+ Year Treasury Bull 3X ETF
UPRO
ProShares UltraPro S&P 500
TLT
iShares 20+ Year Treasury Bond ETF

Return for Risk

Risk / Return Rank

Stocks/Bonds 40/60 Leveraged Portfolio ranks 28 for risk / return — below 28% of Portfolios on our site. The returns aren't fully compensating for the risk involved. This isn't necessarily a dealbreaker, but factor it into your decision — especially if you're risk-averse.

Stocks/Bonds 40/60 Leveraged Portfolio Risk / Return Rank: 2828
Overall Rank
Stocks/Bonds 40/60 Leveraged Portfolio Sharpe Ratio Rank: 3030
Sharpe Ratio Rank
Stocks/Bonds 40/60 Leveraged Portfolio Sortino Ratio Rank: 2727
Sortino Ratio Rank
Stocks/Bonds 40/60 Leveraged Portfolio Omega Ratio Rank: 2727
Omega Ratio Rank
Stocks/Bonds 40/60 Leveraged Portfolio Calmar Ratio Rank: 2828
Calmar Ratio Rank
Stocks/Bonds 40/60 Leveraged Portfolio Martin Ratio Rank: 3030
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

Return / Risk — by metrics

The table below presents risk-adjusted performance metrics for Stocks/Bonds 40/60 Leveraged Portfolio and compares them with S&P 500 Index.

PortfolioBenchmarkDifference
Sharpe ratioReturn per unit of total volatility

1.41

1.67

-0.25

Sortino ratioReturn per unit of downside risk

1.92

2.28

-0.36

Omega ratioGain probability vs. loss probability

1.25

1.30

-0.05

Calmar ratioReturn relative to maximum drawdown

1.81

2.25

-0.44

Martin ratioReturn relative to average drawdown

6.79

10.14

-3.35

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

How much return does each position deliver for the risk it carries? Higher values mean better reward for the risk taken.

PositionRisk / Return RankSharpe ratioSortino ratioOmega ratioCalmar ratioMartin ratio
TLT
iShares 20+ Year Treasury Bond ETF		150.350.571.060.441.08
TMF
Direxion Daily 20+ Year Treasury Bull 3X ETF		8-0.120.031.00-0.13-0.29
UPRO
ProShares UltraPro S&P 500		491.511.981.262.068.53

Sharpe Ratio

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.

Stocks/Bonds 40/60 Leveraged Portfolio Sharpe ratios as of Jun 10, 2026 (values are recalculated daily):

  • 1-Year: 1.41
  • 5-Year: 0.17
  • 10-Year: 0.59
  • All Time: 0.89

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 1.54 to 2.39, this portfolio's current Sharpe ratio places it in the bottom 25%. This suggests weaker risk-adjusted returns than most portfolios, possibly due to lower returns, higher volatility, or both. It may be worth reviewing the allocation. You can use the Portfolio Optimization tool to explore options for improving the Sharpe ratio.

The chart below shows the rolling Sharpe ratio of Stocks/Bonds 40/60 Leveraged Portfolio compared to the selected benchmark. This view highlights how the investment's risk-adjusted performance has changed over time.

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Dividends

Dividend yield

Stocks/Bonds 40/60 Leveraged Portfolio provided a 2.44% dividend yield over the last twelve months.

PositionTTM20252024202320222021202020192018201720162015
Portfolio2.44%2.40%2.44%1.84%1.33%0.50%0.84%1.05%1.36%0.79%0.85%0.97%
Portfolio components:
TLT
iShares 20+ Year Treasury Bond ETF		4.61%4.43%4.30%3.38%2.67%1.50%1.50%2.27%2.63%2.43%2.60%2.61%
TMF
Direxion Daily 20+ Year Treasury Bull 3X ETF		4.23%4.06%4.29%2.82%1.62%0.13%2.23%0.94%1.49%0.41%0.00%0.00%
UPRO
ProShares UltraPro S&P 500		0.77%0.84%0.93%0.74%0.52%0.06%0.11%0.41%0.63%0.00%0.12%0.34%

Drawdowns

Drawdowns Chart

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.

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Worst Drawdowns

The table below displays the maximum drawdowns of the Stocks/Bonds 40/60 Leveraged 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 Stocks/Bonds 40/60 Leveraged Portfolio was 56.95%, occurring on Oct 14, 2022. Recovery took 878 trading sessions.

The current Stocks/Bonds 40/60 Leveraged Portfolio drawdown is 6.45%.

Related event

Drawdown

Fall

Recovery

Underwater

Bear market2022
-56.95%Oct 2022
9mo 20d3y 6mo
4y 3moDec 2021 - Apr 2026
COVID crash2020
-41.15%Mar 2020
27d2mo 22d
3mo 19dFeb 2020 - Jun 2020
Rate-hike selloffLate 2018
-26.35%Dec 2018
10mo 29d2mo 27d
1y 1moJan 2018 - Mar 2019
2015 correction2015
-19.84%Sep 2015
6mo 9d6mo 18d
1y 22dMar 2015 - Apr 2016
2020 correction2020
-19.30%Oct 2020
1mo 27d1mo 9d
3mo 6dSep 2020 - Dec 2020

Volatility

Volatility Chart

The chart below shows the rolling one-month volatility.

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Diversification

Diversification Metrics

Number of Effective Assets

The portfolio contains 3 assets, with an effective number of assets of 2.41, reflecting the diversification based on asset allocation. Your capital is well-distributed across most of your holdings, with only mild concentration in a few names. True diversification also depends on the correlations between assets — check the diversification ratio below.

Diversification Ratio
1Y
3Y
5Y
10Y
All Time
Diversification Ratio

1.21

1.25

1.28

1.35

1.45

The portfolio has a diversification ratio of 1.45, in line with the typical range across portfolios. There's room to improve by adding less correlated assets.

Stocks/Bonds 40/60 Leveraged Portfolio correlation to the S&P 500 Index

Stocks/Bonds 40/60 Leveraged Portfolio has a 0.94 correlation to S&P 500 Index over the trailing 12 months. This section compares each holding's correlation to the benchmark and to the portfolio.
Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.94

Correlation (3Y)
Calculated over the trailing 3-year period

0.91

Correlation (5Y)
Calculated over the trailing 5-year period

0.91

Correlation (10Y)
Calculated over the trailing 10-year period

0.89

Correlation (All Time)
Calculated using the full available price history since Jun 25, 2009

0.87

Benchmark Correlations

Correlation vs. S&P 500 Index. UPRO has the highest benchmark correlation at 1.00, while TMF has the lowest at -0.25.

TMF
-0.25
TLT
-0.24
UPRO
1.00

Portfolio Correlations

Correlation vs. Stocks/Bonds 40/60 Leveraged Portfolio. UPRO has the highest portfolio correlation at 0.88, while TMF has the lowest at 0.16.

TMF
0.16
TLT
0.16
UPRO
0.88

Asset Correlations Table

The table below displays the correlation coefficients between the individual components of the portfolio, the entire portfolio, and the chosen benchmark.
TLTTMFUPRO
TLT1.001.00-0.24
TMF1.001.00-0.24
UPRO-0.24-0.241.00
The correlation results are calculated based on daily price changes starting from Jun 25, 2009
Diversification Analysis

Find what Stocks/Bonds 40/60 Leveraged Portfolio is missing

See which holdings overlap, where Stocks/Bonds 40/60 Leveraged Portfolio is concentrated, and which low-correlation assets could fill the gaps.

Analyze Diversification