Stocks/Bonds 40/60 Portfolio
The 40/60 Portfolio is a simple, balanced portfolio with a 40% equity and 60% fixed income allocation.
Asset Allocation
| Position | Category/Sector | Target Weight |
|---|---|---|
BND Vanguard Total Bond Market ETF | Total Bond Market | 60% |
VTI Vanguard Total Stock Market ETF | Large Cap Growth Equities | 40% |
Performance
Performance Chart
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The earliest data available for this chart is Apr 10, 2007, corresponding to the inception date of BND
Returns By Period
As of May 16, 2025, the Stocks/Bonds 40/60 Portfolio returned 1.44% Year-To-Date and 6.16% of annualized return in the last 10 years.
| YTD | 1M | 6M | 1Y | 5Y* | 10Y* | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | 0.60% | 9.64% | -0.54% | 11.47% | 15.67% | 10.79% |
| Stocks/Bonds 40/60 Portfolio | 1.44% | 3.96% | 0.89% | 7.81% | 6.69% | 6.16% |
| Portfolio components: | ||||||
BND Vanguard Total Bond Market ETF | 2.01% | 0.07% | 1.88% | 4.26% | -0.97% | 1.47% |
VTI Vanguard Total Stock Market ETF | 0.62% | 10.20% | -0.51% | 12.13% | 16.89% | 12.10% |
Monthly Returns
The table below presents the monthly returns of Stocks/Bonds 40/60 Portfolio, with color gradation from worst to best to easily spot seasonal factors. Returns are adjusted for dividends.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 1.60% | 0.47% | -2.37% | -0.05% | 1.84% | 1.44% | |||||||
| 2024 | 0.43% | 1.73% | 2.01% | -3.35% | 3.16% | 1.95% | 2.44% | 1.72% | 1.60% | -1.78% | 3.32% | -2.24% | 11.25% |
| 2023 | 4.82% | -2.55% | 2.69% | 0.80% | -0.48% | 2.78% | 1.58% | -1.24% | -3.53% | -2.02% | 6.71% | 4.35% | 14.16% |
| 2022 | -3.81% | -1.71% | -0.21% | -6.23% | 0.37% | -4.43% | 5.20% | -3.19% | -6.29% | 2.59% | 4.31% | -2.98% | -15.91% |
| 2021 | -0.61% | 0.69% | 1.14% | 2.53% | 0.28% | 1.55% | 1.40% | 1.08% | -2.47% | 2.81% | -0.51% | 1.35% | 9.51% |
| 2020 | 1.07% | -2.60% | -6.62% | 6.75% | 2.59% | 1.35% | 3.27% | 2.54% | -1.65% | -1.17% | 5.87% | 2.16% | 13.58% |
| 2019 | 4.09% | 1.44% | 1.72% | 1.66% | -1.78% | 3.67% | 0.69% | 0.68% | 0.42% | 1.07% | 1.60% | 1.19% | 17.60% |
| 2018 | 1.44% | -2.21% | -0.43% | -0.31% | 1.54% | 0.27% | 1.39% | 1.87% | -0.22% | -3.76% | 1.22% | -2.87% | -2.23% |
| 2017 | 0.98% | 2.09% | 0.01% | 0.93% | 0.86% | 0.49% | 1.13% | 0.51% | 0.97% | 0.85% | 1.16% | 0.80% | 11.30% |
| 2016 | -1.93% | 0.48% | 3.57% | 0.52% | 0.77% | 1.23% | 2.11% | -0.08% | 0.15% | -1.51% | 0.64% | 1.11% | 7.18% |
| 2015 | 0.08% | 1.79% | -0.24% | 0.10% | 0.32% | -1.37% | 1.26% | -2.94% | -0.85% | 3.46% | 0.06% | -1.07% | 0.47% |
| 2014 | -0.51% | 2.34% | 0.13% | 0.48% | 1.51% | 1.20% | -1.04% | 2.47% | -1.25% | 1.62% | 1.57% | 0.01% | 8.76% |
Expense Ratio
Stocks/Bonds 40/60 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.
Risk-Adjusted Performance
Risk-Adjusted Performance Rank
The current rank of Stocks/Bonds 40/60 Portfolio is 73, indicating average performance compared to other portfolios on our website. Here’s a breakdown of how it compares using common performance measures.
Risk-Adjusted Performance Indicators
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 ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio | |
|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 0.81 | 1.43 | 1.17 | 0.42 | 2.51 |
VTI Vanguard Total Stock Market ETF | 0.60 | 1.11 | 1.16 | 0.73 | 2.76 |
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Dividends
Dividend yield
Stocks/Bonds 40/60 Portfolio provided a 2.77% dividend yield over the last twelve months.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2.77% | 2.71% | 2.43% | 2.23% | 1.67% | 1.90% | 2.34% | 2.50% | 2.21% | 2.28% | 2.34% | 2.38% |
| Portfolio components: | ||||||||||||
BND Vanguard Total Bond Market ETF | 3.76% | 3.67% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% |
VTI Vanguard Total Stock Market ETF | 1.29% | 1.27% | 1.44% | 1.67% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% | 1.76% |
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 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 Portfolio was 21.57%, occurring on Mar 9, 2009. Recovery took 183 trading sessions.
The current Stocks/Bonds 40/60 Portfolio drawdown is 1.45%.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -21.57% | Nov 1, 2007 | 339 | Mar 9, 2009 | 183 | Nov 25, 2009 | 522 |
| -20.17% | Nov 8, 2021 | 236 | Oct 14, 2022 | 411 | Jun 5, 2024 | 647 |
| -16.96% | Feb 20, 2020 | 22 | Mar 20, 2020 | 77 | Jul 10, 2020 | 99 |
| -8.32% | Aug 30, 2018 | 80 | Dec 24, 2018 | 53 | Mar 13, 2019 | 133 |
| -8.03% | Dec 9, 2024 | 82 | Apr 8, 2025 | — | — | — |
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 2 assets, with an effective number of assets of 1.92, reflecting the diversification based on asset allocation. This number of effective assets suggests a highly concentrated portfolio, where a few assets dominate the allocation, potentially increasing the portfolio's risk due to lack of diversification.
Asset Correlations Table
| ^GSPC | BND | VTI | Portfolio | |
|---|---|---|---|---|
| ^GSPC | 1.00 | -0.16 | 0.99 | 0.91 |
| BND | -0.16 | 1.00 | -0.16 | 0.17 |
| VTI | 0.99 | -0.16 | 1.00 | 0.92 |
| Portfolio | 0.91 | 0.17 | 0.92 | 1.00 |
AI Insight on Diversification
The portfolio is moderately diversified, combining bonds (BND) and stocks (VTI) with a 40/60 allocation. The correlation matrix reveals that bonds and stocks have a slightly negative correlation (-0.16), which is beneficial for diversification as it reduces overall portfolio volatility. This low correlation between BND and VTI helps smooth returns by offsetting movements in one asset class with the other.
The portfolio’s correlation with VTI is quite high (0.92), indicating that the stock portion heavily influences the portfolio’s performance. In contrast, the correlation with BND is much lower (0.16), reflecting the stabilizing role bonds play. This suggests that while the portfolio benefits from diversification between asset classes, the stock allocation dominates the portfolio’s risk and return profile.
There are no heavily correlated positions within the portfolio that would hurt diversification; the negative correlation between bonds and stocks is a positive feature. However, the dominance of VTI in driving portfolio returns implies that the portfolio is somewhat concentrated in equities, despite the 40% bond allocation. Overall, the portfolio strikes a balance between diversification and equity exposure but leans toward being equity-driven rather than fully balanced.