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Stocks/Bonds 40/60 Portfolio

Last updated Apr 1, 2023

The 40/60 Portfolio is a simple, balanced portfolio with a 40% equity and 60% fixed income allocation.

Expense Ratio

Rank 13 of 55

0.03%
0.00%0.94%
Dividend Yield

Rank 18 of 55

2.57%
0.00%4.33%
10Y Annualized Return

Rank 41 of 55

5.68%
2.63%52.97%
Sharpe Ratio

Rank 41 of 55

-0.55
-0.930.49
Maximum Drawdown

Rank 10 of 55

-23.14%
-82.98%-16.15%

Asset Allocation


BND 60%VTI 40%BondBondEquityEquity

Performance

The chart shows the growth of $10,000 invested in Stocks/Bonds 40/60 Portfolio in Oct 2022 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $24,178 for a total return of roughly 141.78%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly


120.00%130.00%140.00%150.00%160.00%170.00%180.00%190.00%NovemberDecember2023FebruaryMarch
141.78%
183.72%
Stocks/Bonds 40/60 Portfolio
Benchmark (^GSPC)
Portfolio components

Returns

As of Apr 1, 2023, the Stocks/Bonds 40/60 Portfolio returned 4.83% Year-To-Date and 5.68% of annualized return in the last 10 years.


1 monthYear-To-Date6 months1 year5 years (annualized)10 years (annualized)
Benchmark3.51%7.03%12.88%-10.71%9.25%10.16%
Stocks/Bonds 40/60 Portfolio2.69%4.83%8.05%-6.66%5.08%5.68%
BND
Vanguard Total Bond Market ETF
2.68%3.25%4.69%-4.65%0.87%1.29%
VTI
Vanguard Total Stock Market ETF
2.71%7.18%13.17%-10.19%10.36%11.75%

Sharpe Ratio Chart

The Sharpe ratio shows whether the portfolio's excess returns are due to smart investment decisions or a result of taking a higher risk. The higher a portfolio's Sharpe ratio, the better its risk-adjusted performance.

The current Stocks/Bonds 40/60 Portfolio Sharpe ratio is -0.55. A negative Sharpe ratio means that the risk-free rate is higher than the portfolio's return. This value does not convey any meaningful information.

The chart below displays rolling 12-month Sharpe Ratio.


-1.50-1.00-0.50NovemberDecember2023FebruaryMarch
-0.55
-0.46
Stocks/Bonds 40/60 Portfolio
Benchmark (^GSPC)
Portfolio components

Dividends

Stocks/Bonds 40/60 Portfolio granted a 2.57% dividend yield in the last twelve months.


PeriodTTM20222021202020192018201720162015201420132012

Dividend yield

2.57%2.24%1.71%1.98%2.50%2.74%2.48%2.61%2.74%2.86%2.93%3.54%

Drawdowns Chart

The Drawdowns chart displays portfolio losses from any high point along the way.


-25.00%-20.00%-15.00%-10.00%NovemberDecember2023FebruaryMarch
-11.94%
-14.33%
Stocks/Bonds 40/60 Portfolio
Benchmark (^GSPC)
Portfolio components

Worst Drawdowns

The table below shows the maximum drawdowns of the Stocks/Bonds 40/60 Portfolio. A maximum drawdown is an indicator of risk. It shows a reduction in portfolio value from its maximum due to a series of losing trades.

The maximum drawdown since January 2010 for the Stocks/Bonds 40/60 Portfolio is 23.14%, recorded on Mar 9, 2009. It took 209 trading sessions for the portfolio to recover.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-23.14%May 20, 2008202Mar 9, 2009209Jan 5, 2010411
-19.79%Nov 8, 2021236Oct 14, 2022
-15.64%Feb 21, 202021Mar 20, 202053Jun 5, 202074
-7.45%Aug 30, 201880Dec 24, 201836Feb 15, 2019116
-6.12%Jul 25, 201111Aug 8, 201165Nov 8, 201176
-5.27%Apr 27, 201585Aug 25, 2015149Mar 30, 2016234
-5.2%Nov 1, 200788Mar 10, 200847May 15, 2008135
-4.83%Apr 26, 201049Jul 2, 201050Sep 14, 201099
-4.72%Jan 29, 20189Feb 8, 2018124Aug 7, 2018133
-4.52%May 22, 201323Jun 24, 201360Sep 18, 201383

Volatility Chart

Current Stocks/Bonds 40/60 Portfolio volatility is 8.57%. The chart below shows the rolling 10-day volatility. Volatility is a statistical measure showing how big price swings are in either direction. The higher asset volatility, the riskier it is, because the price movements are less predictable.


0.00%10.00%20.00%30.00%40.00%NovemberDecember2023FebruaryMarch
7.02%
15.42%
Stocks/Bonds 40/60 Portfolio
Benchmark (^GSPC)
Portfolio components