Asset Allocation
| Position | Category/Sector | Target Weight |
|---|---|---|
BND Vanguard Total Bond Market ETF | Total Bond Market | 80% |
VTI Vanguard Total Stock Market ETF | Large Cap Blend Equities | 20% |
Find the right asset allocation for Stocks/Bonds 20/80 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 Chart
The chart shows the growth of an initial investment of $10,000 in Stocks/Bonds 20/80 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 10.0% from its target allocation.
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Returns By Period
As of Jul 14, 2026, the Stocks/Bonds 20/80 Portfolio returned 2.03% Year-To-Date and 4.22% of annualized return in the last 10 years.
| Position | 1D | 1M | 6M | YTD | 1Y | 3Y* | 5Y* | 10Y* |
|---|---|---|---|---|---|---|---|---|
Benchmark S&P 500 Index | -0.79% | 1.13% | 7.71% | 9.79% | 20.06% | 18.60% | 11.43% | 13.27% |
Portfolio Stocks/Bonds 20/80 Portfolio | -0.45% | -0.29% | 1.40% | 2.03% | 7.12% | 6.97% | 2.35% | 4.22% |
| Portfolio components: | ||||||||
BND Vanguard Total Bond Market ETF | -0.37% | -0.68% | -0.37% | -0.17% | 3.58% | 3.76% | -0.22% | 1.43% |
VTI Vanguard Total Stock Market ETF | -0.78% | 1.22% | 8.45% | 10.96% | 21.85% | 19.76% | 12.01% | 14.67% |
Monthly Returns
Based on dividend-adjusted daily data since Apr 10, 2007, Stocks/Bonds 20/80 Portfolio's average daily return is +0.02%, while the average monthly return is +0.41%. At this rate, an investment would double in approximately 14.1 years.
Historically, 69% of months were positive and 31% were negative. The best month was Nov 2023 with a return of +5.5%, while the worst month was Oct 2008 at -5.7%. The longest winning streak lasted 10 consecutive months, and the longest losing streak was 4 months.
On a daily basis, Stocks/Bonds 20/80 Portfolio closed higher 56% of trading days. The best single day was Oct 13, 2008 with a return of +5.9%, while the worst single day was Mar 12, 2020 at -6.3%.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 0.49% | 1.19% | -2.39% | 2.13% | 1.24% | 0.16% | -0.74% | 2.03% | |||||
| 2025 | 1.09% | 1.35% | -1.16% | 0.33% | 0.70% | 2.24% | 0.24% | 1.40% | 1.57% | 0.94% | 0.54% | -0.24% | 9.33% |
| 2024 | 0.10% | -0.06% | 1.33% | -2.79% | 2.29% | 1.32% | 2.27% | 1.62% | 1.47% | -2.11% | 2.19% | -1.94% | 5.66% |
| 2023 | 4.04% | -2.60% | 2.73% | 0.70% | -0.83% | 1.14% | 0.63% | -0.91% | -2.94% | -1.73% | 5.51% | 3.91% | 9.61% |
| 2022 | -2.85% | -1.38% | -1.53% | -4.99% | 0.69% | -2.96% | 3.76% | -2.96% | -5.19% | 0.67% | 4.00% | -1.82% | -14.06% |
| 2021 | -0.74% | -0.61% | -0.29% | 1.70% | 0.23% | 1.22% | 1.29% | 0.42% | -1.70% | 1.37% | -0.12% | 0.52% | 3.29% |
Benchmark Metrics
Stocks/Bonds 20/80 Portfolio has an annualized alpha of 2.93%, beta of 0.20, and R2 of 0.45 versus S&P 500 Index. Calculated based on daily prices since April 10, 2007.
- This portfolio participates in less of S&P 500 Index's moves in both directions, but captures a larger share of gains (28.12%) than losses (24.62%) - typical of diversified or defensive assets.
- Beta of 0.20 may look defensive, but with R2 of 0.45 this portfolio is largely uncorrelated with S&P 500 Index - low beta reflects independence, not downside protection. See the Volatility section for a true picture of this portfolio's risk.
- R2 of 0.45 means the benchmark explains less than half of this portfolio's behavior - treat beta with caution or consider switching to a more representative benchmark.
- Alpha
- 2.93%
- Beta
- 0.20
- R²
- 0.45
- Upside Capture
- 28.12%
- Downside Capture
- 24.62%
Expense Ratio
Stocks/Bonds 20/80 Portfolio has an expense ratio of 0.03%, 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.
Return for Risk
Risk / Return Rank
Stocks/Bonds 20/80 Portfolio ranks 39 for risk / return — below 39% 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.
Return / Risk — by metrics
The table below presents risk-adjusted performance metrics for Stocks/Bonds 20/80 Portfolio and compares them with S&P 500 Index.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| Portfolio | Benchmark | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | 1.59 | 1.61 | -0.02 |
| Sortino ratioReturn per unit of downside risk | 2.29 | 2.22 | +0.07 |
| Omega ratioGain probability vs. loss probability | 1.29 | 1.29 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 2.09 | 2.21 | -0.13 |
| Martin ratioReturn relative to average drawdown | 8.92 | 9.61 | -0.69 |
How much return does each position deliver for the risk it carries? Higher values mean better reward for the risk taken.
| Position | Risk / Return Rank | Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio |
|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 32 | 0.97 | 1.44 | 1.17 | 1.34 | 3.72 |
VTI Vanguard Total Stock Market ETF | 66 | 1.71 | 2.36 | 1.31 | 2.46 | 10.78 |
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Dividends
Dividend yield
Stocks/Bonds 20/80 Portfolio provided a 3.42% dividend yield over the last twelve months.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 3.42% | 3.31% | 3.19% | 2.76% | 2.41% | 1.94% | 2.19% | 2.53% | 2.66% | 2.38% | 2.39% | 2.46% |
| Portfolio components: | ||||||||||||
BND Vanguard Total Bond Market ETF | 4.01% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
VTI Vanguard Total Stock Market ETF | 1.05% | 1.12% | 1.27% | 1.44% | 1.66% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% |
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 20/80 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 20/80 Portfolio was 18.23%, occurring on Oct 20, 2022. Recovery took 473 trading sessions.
The current Stocks/Bonds 20/80 Portfolio drawdown is 0.90%.
Related event | Drawdown | Fall | Recovery | Underwater |
|---|---|---|---|---|
Bear market2022 | -18.23%Oct 2022 | 11mo 14d | 1y 10mo | 2y 10moNov 2021 - Sep 2024 |
Financial crisis2007–2009 | -14.37%Oct 2008 | 4mo 23d | 9mo 24d | 1y 2moMay 2008 - Jul 2009 |
COVID crash2020 | -10.68%Mar 2020 | 13d | 2mo 3d | 2mo 16dMar 2020 - May 2020 |
2025 selloff2025 | -4.26%Apr 2025 | 4mo | 1mo 27d | 5mo 27dDec 2024 - Jun 2025 |
2013 pullback2013 | -4.08%Jun 2013 | 1mo 3d | 3mo 26d | 4mo 29dMay 2013 - Oct 2013 |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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Diversification
AI Analysis
The gist
The portfolio is a two-sleeve bet on U.S. financial ballast: mostly BND (Total Bond Market) with a smaller VTI (Large Cap Blend Equities) slice, which is basically the classic “equities plus not-equities” construction that finance keeps rediscovering.
The numbers
- 2 assets, with an effective count of 1.47; that is not broad diversification, but it is enough for the bond sleeve to do real work.
- Diversification ratio sits at 1.23 in 1Y and 1.42 incept, from the 38th to 70th percentile on the platform; the structure is decent, and the longer history looks better than the recent one.
- The pair correlation is -0.13, which is modestly helpful, though the math says the portfolio is still mostly one large fixed-income position with an equity rider.
The good
- BND and VTI sit in separate clusters, so the portfolio does not depend on a single economic driver.
- The negative correlation gives the bond sleeve a genuine portfolio function, not just decorative yield.
The bad
- The effective asset count of 1.47 says the portfolio is concentrated in practice, despite having two tickers.
- The 1Y diversification ratio being below the longer windows suggests the recent environment has made the two sleeves behave a bit more alike, which is how the market quietly makes “balanced” portfolios feel less balanced.
The ugly
- In inflation shocks or rate-surge regimes, bonds and equities can lose their usual relationship at the same time; the correlation structure is elegant right up until it isn’t.
Next steps
- Portfolios with this correlation profile are often paired with exposures whose return drivers sit outside duration and broad equity beta.
- The current structure already gets some cross-asset diversification; the main question is less about more tickers and more about whether the portfolio wants a different source of ballast.
Diversification Metrics
Number of Effective Assets
The portfolio contains 2 assets, with an effective number of assets of 1.47, 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 | 1.23 | 1.27 | 1.28 | 1.31 | 1.42 |
The portfolio has a diversification ratio of 1.42, in line with the typical range across portfolios. There's room to improve by adding less correlated assets.
Stocks/Bonds 20/80 Portfolio correlation to the S&P 500 Index
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.74 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.65 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.64 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.63 |
Correlation (All Time) Calculated using the full available price history since Apr 10, 2007 | 0.61 |
Benchmark Correlations
Correlation vs. S&P 500 Index. VTI has the highest benchmark correlation at 0.99, while BND has the lowest at -0.13.
Asset Correlations Table
Find what Stocks/Bonds 20/80 Portfolio is missing
See which holdings overlap, where Stocks/Bonds 20/80 Portfolio is concentrated, and which low-correlation assets could fill the gaps.
Analyze Diversification