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 Blend Equities | 40% |
Benchmark: S&P 500 Index · Rebalance: On 10% deviation
Find the right asset allocation for Stocks/Bonds 40/60 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 40/60 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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Compare your portfolio against anything
Returns By Period
As of Jul 31, 2026, the Stocks/Bonds 40/60 Portfolio returned 3.79% Year-To-Date and 6.86% of annualized return in the last 10 years.
| Position | 1D | 1M | 6M | YTD | 1Y | 3Y* | 5Y* | 10Y* | ALL TIME* |
|---|---|---|---|---|---|---|---|---|---|
Benchmark S&P 500 Index | 1.66% | -0.82% | 6.72% | 8.65% | 16.89% | 17.46% | 11.09% | 13.10% | 8.07% |
Portfolio Stocks/Bonds 40/60 Portfolio | 0.68% | -1.01% | 2.76% | 3.79% | 9.15% | 9.79% | 4.63% | 6.86% | 6.58% |
| Portfolio components: | |||||||||
BND Vanguard Total Bond Market ETF | 0.06% | -1.02% | -0.53% | -0.28% | 2.92% | 3.79% | -0.37% | 1.38% | 3.00% |
VTI Vanguard Total Stock Market ETF | 1.62% | -1.02% | 7.65% | 9.90% | 18.67% | 18.61% | 11.63% | 14.49% | 9.56% |
Monthly Returns
Based on dividend-adjusted daily data since Apr 10, 2007, Stocks/Bonds 40/60 Portfolio's average daily return is +0.03%, while the average monthly return is +0.56%. At this rate, an investment would double in approximately 10.3 years.
Historically, 69% of months were positive and 31% were negative. The best month was Apr 2020 with a return of +7.0%, while the worst month was Oct 2008 at -8.5%. The longest winning streak lasted 15 consecutive months, and the longest losing streak was 4 months.
On a daily basis, Stocks/Bonds 40/60 Portfolio closed higher 56% of trading days. The best single day was Oct 13, 2008 with a return of +7.6%, while the worst single day was Mar 12, 2020 at -7.2%.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 0.77% | 0.76% | -3.03% | 4.15% | 2.22% | 0.03% | -1.01% | 3.79% | |||||
| 2025 | 1.58% | 0.54% | -2.32% | 0.18% | 2.07% | 2.97% | 0.76% | 1.65% | 2.03% | 1.27% | 0.48% | -0.18% | 11.48% |
| 2024 | 0.36% | 1.26% | 1.82% | -3.17% | 2.91% | 1.76% | 2.19% | 1.77% | 1.62% | -1.76% | 3.31% | -2.21% | 10.05% |
| 2023 | 4.77% | -2.55% | 2.76% | 0.81% | -0.50% | 2.52% | 1.38% | -1.16% | -3.40% | -1.95% | 6.48% | 4.26% | 13.66% |
| 2022 | -3.65% | -1.63% | -0.32% | -6.02% | 0.51% | -4.27% | 5.15% | -3.14% | -6.19% | 2.51% | 4.31% | -2.83% | -15.18% |
| 2021 | -0.63% | 0.32% | 0.70% | 2.53% | 0.29% | 1.54% | 1.42% | 1.03% | -2.39% | 2.69% | -0.44% | 1.35% | 8.60% |
Benchmark Metrics
Stocks/Bonds 40/60 Portfolio has an annualized alpha of 2.64%, beta of 0.40, and R2 of 0.85 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 (46.36%) than losses (45.18%) - typical of diversified or defensive assets.
- This portfolio generated an annualized alpha of 2.64% versus S&P 500 Index - delivering returns beyond what market exposure alone would predict.
- Beta of 0.40 indicates this portfolio moves significantly less than S&P 500 Index - a genuinely defensive profile with reduced participation in both market rallies and downturns.
- Alpha
- 2.64%
- Beta
- 0.40
- R²
- 0.85
- Upside Capture
- 46.36%
- Downside Capture
- 45.18%
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.
Return for Risk
Risk / Return Rank
Stocks/Bonds 40/60 Portfolio ranks 53 for risk / return — above 53% of Portfolios peers on PortfoliosLab. Its historical combined result is near the middle of the peer group.
Risk / Return Metrics
The table below presents risk-adjusted performance metrics for Stocks/Bonds 40/60 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 | 1.45 | 1.32 | +0.13 |
| Sortino ratioReturn per unit of downside risk | 2.10 | 1.86 | +0.24 |
| Omega ratioGain probability vs. loss probability | 1.26 | 1.24 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 2.02 | 1.86 | +0.16 |
| Martin ratioReturn relative to average drawdown | 8.71 | 7.90 | +0.81 |
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 | 0.79 | 1.17 | 1.14 | 1.10 | 2.77 |
VTI Vanguard Total Stock Market ETF | 66 | 1.43 | 2.01 | 1.26 | 2.10 | 9.06 |
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Dividends
Dividend yield
Stocks/Bonds 40/60 Portfolio provided a 2.83% dividend yield over the last twelve months.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2.83% | 2.76% | 2.71% | 2.43% | 2.23% | 1.76% | 2.00% | 2.34% | 2.50% | 2.21% | 2.28% | 2.34% |
| 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 | 1.06% | 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 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 22.91%, occurring on Mar 9, 2009. Recovery took 176 trading sessions.
The current Stocks/Bonds 40/60 Portfolio drawdown is 1.26%.
Drawdown | Fall | Recovery | Underwater | Related event |
|---|---|---|---|---|
-22.91%Mar 2009 | 9mo 23d | 8mo 12d | 1y 6moMay 2008 - Nov 2009 | Financial crisis2007–2009 |
-19.43%Oct 2022 | 11mo 10d | 1y 7mo | 2y 7moNov 2021 - Jun 2024 | Bear market2022 |
-16.17%Mar 2020 | 28d | 2mo 17d | 3mo 15dFeb 2020 - Jun 2020 | COVID crash2020 |
-8.05%Apr 2025 | 4mo | 2mo 3d | 6mo 3dDec 2024 - Jun 2025 | 2025 selloff2025 |
-7.87%Dec 2018 | 3mo 26d | 1mo 27d | 5mo 23dAug 2018 - Feb 2019 | Rate-hike selloffLate 2018 |
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 60/40 stock-bond mix, which is a coherent bet on the equity market being the growth engine and bonds being the ballast. The math says the two sleeves are not very entangled, so most of the diversification benefit comes from the basic equity-vs-duration split.
The numbers
- 2 assets, with an effective count of 1.92; that is essentially full use of both sleeves, not a disguised concentration.
- Diversification ratio is 1.18 at 1Y and 1.30 incept, putting the portfolio around the 29.5th to 54.4th percentile on the platform; that is modest, which is exactly what a two-asset portfolio usually can manage.
- BND (Total Bond Market) and VTI (Large Cap Blend Equities) have correlation of -0.13; the relationship is mildly helpful, but not dramatic.
The good
- The two clusters are cleanly separated. Bonds and equities are behaving like different risk drivers, which is the whole trick.
- VTI (VTI) carries most of the portfolio correlation at 0.92 with the portfolio, while BND (BND) sits at 0.19; that is what a ballast sleeve is supposed to look like.
The bad
- The 1Y DR of 1.18 is weaker than the longer windows. In some sense, the portfolio’s diversification has been a little less useful recently.
- The portfolio is still mostly one macro bet plus one hedge against that bet. There is no third source of return behavior here.
The ugly
- If stocks and bonds sell off together, the portfolio loses the one thing that makes 60/40 look respectable on paper: negative or low correlation. That is the familiar inflation-shock or rate-shock problem, and it does not ask permission.
Next steps
- Portfolios with this structure are often paired with sleeves whose return drivers are less tied to either growth or duration.
- The correlation profile suggests a simple two-factor story rather than broad diversification across multiple economic regimes.
- The recent dip in diversification ratio is worth watching, because it usually means the market has started to treat both sleeves as macro assets first and asset classes second.
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. Your capital is spread almost evenly across your holdings, indicating a well-balanced allocation. Note that true diversification also depends on the correlations between assets — check the diversification ratio below.
Diversification Ratio
1Y | 3Y | 5Y | 10Y | All Time | |
|---|---|---|---|---|---|
Diversification Ratio | 1.18 | 1.24 | 1.24 | 1.25 | 1.30 |
The portfolio has a diversification ratio of 1.30, in line with the typical range across portfolios.
Stocks/Bonds 40/60 Portfolio correlation to the S&P 500 Index
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.93 |
Correlation (3Y) Balances recent behavior with more history. | 0.88 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.88 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.89 |
Correlation (All Time) Calculated using the full available price history since Apr 10, 2007 | 0.90 |
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 40/60 Portfolio is missing
See which holdings overlap, where Stocks/Bonds 40/60 Portfolio is concentrated, and which low-correlation assets could fill the gaps.
Analyze Diversification