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% |
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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 Jun 24, 2026, the Stocks/Bonds 20/80 Portfolio returned 2.17% Year-To-Date and 4.42% of annualized return in the last 10 years.
| Position | 1D | 1M | YTD | 6M | 1Y | 3Y* | 5Y* | 10Y* |
|---|---|---|---|---|---|---|---|---|
Benchmark S&P 500 Index | -1.44% | -1.45% | 7.60% | 6.59% | 22.24% | 19.20% | 11.54% | 13.71% |
Portfolio Stocks/Bonds 20/80 Portfolio | -0.19% | 0.36% | 2.17% | 2.02% | 8.07% | 7.29% | 2.56% | 4.42% |
| Portfolio components: | ||||||||
BND Vanguard Total Bond Market ETF | 0.11% | 0.64% | 0.49% | 0.57% | 4.23% | 3.96% | 0.05% | 1.56% |
VTI Vanguard Total Stock Market ETF | -1.39% | -0.84% | 8.82% | 7.71% | 24.22% | 20.62% | 11.90% | 15.14% |
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, 68% of months were positive and 32% 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% | -0.46% | 2.17% | ||||||
| 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 2.97%, beta of 0.20, and R2 of 0.46 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 (28.25%) than losses (24.73%) - typical of diversified or defensive assets.
- Beta of 0.20 may look defensive, but with R2 of 0.46 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 0.46 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
- 2.97%
- Beta
- 0.20
- R²
- 0.46
- Upside Capture
- 28.25%
- Downside Capture
- 24.73%
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 36 for risk / return — below 36% 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 | 1.79 | 1.78 | +0.01 |
| Sortino ratioReturn per unit of downside risk | 2.59 | 2.44 | +0.16 |
| Omega ratioGain probability vs. loss probability | 1.33 | 1.32 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.37 | 2.46 | -0.09 |
| Martin ratioReturn relative to average drawdown | 10.12 | 10.92 | -0.80 |
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 | 1.14 | 1.70 | 1.20 | 1.59 | 4.52 |
VTI Vanguard Total Stock Market ETF | 59 | 1.90 | 2.59 | 1.34 | 2.73 | 12.14 |
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Dividends
Dividend yield
Stocks/Bonds 20/80 Portfolio provided a 3.37% dividend yield over the last twelve months.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 3.37% | 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 | 3.96% | 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 | 1.04% | 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 0.58%.
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 plain two-asset bet on U.S. bonds and U.S. stocks, with most of the diversification coming from the fact that the assets are not the same thing. The bond sleeve still dominates the risk picture, so the portfolio behaves more like a bond-heavy balance sheet with an equity sidecar than like a balanced multi-asset construction.
The numbers
- The diversification ratio is 1.22 at 1Y, 1.27 at 3Y, 1.28 at 5Y, 1.31 at 10Y, and 1.42 since inception; that is modest diversification, improving over longer windows.
- The 1.47 effective asset count out of 2 says the portfolio is split, but not especially independently split, which is what two correlated sleeves tend to do.
- The -0.13 correlation between BND (Total Bond Market) and VTI (Large Cap Blend Equities) is mildly helpful, though not enough to produce dramatic portfolio-level separation.
The good
- The two positions sit in different economic engines: duration and credit conditions in BND, earnings and discount-rate sensitivity in VTI.
- The portfolio’s diversification profile is clean, if simple; the assets cluster separately rather than collapsing into one risk factor.
- The long-run DR percentile, 69.1th, suggests the structure has been reasonably effective relative to the platform.
The bad
- BND (Total Bond Market) at 80% makes the portfolio’s volatility and drawdown profile bond-led, with equities acting as a secondary source of risk.
- The DR around 1.2-1.3 is only modest, so the portfolio does not get much diversification credit beyond the obvious stock/bond split.
- In some sense, the portfolio is concentrated in the most familiar correlation trade in markets: growth worries help bonds, growth optimism helps stocks, and both can disappoint together.
The ugly
- If inflation is persistent and rate cuts do not arrive cleanly, BND and VTI can both come under pressure at once, and the small negative correlation offers less shelter than it looks like on paper.
- A rates shock that lifts yields while also tightening financial conditions would stress the portfolio in both sleeves, just through different channels.
Next steps
- Portfolios with this structure are often paired with exposures whose return drivers are less tied to the U.S. rate cycle.
- The modest DR suggests that most of the benefit is already coming from the basic bond/equity split, not from finer construction details.
- The correlation data fits a portfolio designed for stability first, with growth participation as a minority feature.
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 | 1.22 | 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 | 0.75 |
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