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Stocks/Bonds 40/60 Portfolio

Last updated Dec 2, 2023

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

Asset Allocation


BND 60%VTI 40%BondBondEquityEquity
PositionCategory/SectorWeight
BND
Vanguard Total Bond Market ETF
Total Bond Market60%
VTI
Vanguard Total Stock Market ETF
Large Cap Growth Equities40%

Performance

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 Quarterly


140.00%160.00%180.00%200.00%220.00%JulyAugustSeptemberOctoberNovemberDecember
153.23%
217.22%
Stocks/Bonds 40/60 Portfolio
Benchmark (^GSPC)
Portfolio components

The earliest data available for this chart is Apr 10, 2007, corresponding to the inception date of BND

Returns

As of Dec 2, 2023, the Stocks/Bonds 40/60 Portfolio returned 9.79% Year-To-Date and 5.61% of annualized return in the last 10 years.


Year-To-Date1 month6 months1 year5 years (annualized)10 years (annualized)
^GSPC
N/AN/AN/AN/AN/AN/A
Stocks/Bonds 40/60 Portfolio9.79%5.11%3.53%5.82%5.56%5.63%
BND
Vanguard Total Bond Market ETF
2.86%4.38%0.50%1.19%0.87%1.43%
VTI
Vanguard Total Stock Market ETF
20.72%9.25%8.07%13.58%11.92%11.34%

Monthly Returns Heatmap


JanFebMarAprMayJunJulAugSepOctNovDec
2023-0.52%2.59%1.40%-1.18%-3.43%-1.97%6.47%

Sharpe Ratio

The current Stocks/Bonds 40/60 Portfolio Sharpe ratio is 0.84. A Sharpe ratio between 0 and 1.0 is considered sub-optimal.

-1.000.001.002.003.000.84

The Sharpe ratio of Stocks/Bonds 40/60 Portfolio lies between the 25th and 75th percentiles. It indicates that the portfolio's risk-adjusted performance is in line with the majority of portfolios. This suggests a balanced approach to risk and return, which might be suitable for a broad range of investors.


Rolling 12-month Sharpe Ratio0.000.501.00JulyAugustSeptemberOctoberNovemberDecember
0.84
0.91
Stocks/Bonds 40/60 Portfolio
Benchmark (^GSPC)
Portfolio components

Dividend yield

Stocks/Bonds 40/60 Portfolio granted a 2.45% dividend yield in the last twelve months.


TTM20222021202020192018201720162015201420132012
Stocks/Bonds 40/60 Portfolio2.45%2.23%1.67%1.90%2.34%2.50%2.21%2.28%2.34%2.38%2.37%2.80%
BND
Vanguard Total Bond Market ETF
3.11%2.60%1.97%2.22%2.72%2.81%2.54%2.51%2.57%2.79%2.78%3.24%
VTI
Vanguard Total Stock Market ETF
1.46%1.66%1.21%1.42%1.78%2.04%1.71%1.92%1.98%1.76%1.74%2.13%

Expense Ratio

The Stocks/Bonds 40/60 Portfolio has an expense ratio of 0.03% which is considered to be low. Below you can find the expense ratios of portfolio funds side-by-side and effortlessly compare their relative costs.


0.03%
0.00%2.15%

Risk-Adjusted Performance

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 ratioSortino ratioOmega ratioCalmar ratioUlcer Index
BND
Vanguard Total Bond Market ETF
0.27
VTI
Vanguard Total Stock Market ETF
0.96

Asset Correlations Table

The table below displays the correlation coefficients between the individual components of the portfolio, the entire portfolio, and the chosen benchmark.

BNDVTI
BND1.00-0.19
VTI-0.191.00

Drawdowns Chart

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


-14.00%-12.00%-10.00%-8.00%-6.00%-4.00%JulyAugustSeptemberOctoberNovemberDecember
-7.77%
-4.21%
Stocks/Bonds 40/60 Portfolio
Benchmark (^GSPC)
Portfolio components

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 23.14%, occurring on Mar 9, 2009. Recovery took 209 trading sessions.


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

Volatility Chart

The current Stocks/Bonds 40/60 Portfolio volatility is 2.30%, representing the average percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.


1.50%2.00%2.50%3.00%3.50%4.00%4.50%5.00%JulyAugustSeptemberOctoberNovemberDecember
2.30%
2.79%
Stocks/Bonds 40/60 Portfolio
Benchmark (^GSPC)
Portfolio components
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