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Stocks/Bonds 40/60 Leveraged Portfolio

Last updated Aug 13, 2022

This is a leveraged alternative to the classical 40/60 Portfolio. It is implemented without borrowing money at the portfolio level but using leveraged ETFs. Note that leveraged ETFs may involve a substantial risk of loss and are not suitable for all investors.

Expense Ratio

Rank 53 of 54

0.65%
0.00%0.94%
Dividend Yield

Rank 47 of 54

0.93%
0.00%4.34%
10Y Annualized Return

Rank 8 of 54

19.23%
4.13%64.70%
Sharpe Ratio

Rank 34 of 54

-0.43
-0.980.14
Maximum Drawdown

Rank 52 of 54

-58.05%
-91.88%-17.74%

Stocks/Bonds 40/60 Leveraged PortfolioAsset Allocation


Stocks/Bonds 40/60 Leveraged PortfolioPerformance

The chart shows the growth of $10,000 invested in Stocks/Bonds 40/60 Leveraged Portfolio in Jan 2010 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $101,180 for a total return of roughly 911.80%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly


-30.00%-20.00%-10.00%0.00%10.00%MarchAprilMayJuneJulyAugust
-18.96%
-2.76%
Stocks/Bonds 40/60 Leveraged Portfolio
Benchmark (^GSPC)
Portfolio components

Stocks/Bonds 40/60 Leveraged PortfolioReturns

As of Aug 13, 2022, the Stocks/Bonds 40/60 Leveraged Portfolio returned -35.16% Year-To-Date and 19.23% of annualized return in the last 10 years.


1M6MYTD1Y5Y10Y
Benchmark12.08%-4.97%-10.20%-3.65%11.89%11.81%
Stocks/Bonds 40/60 Leveraged Portfolio15.27%-20.94%-32.25%-25.53%14.58%16.60%
TMF
Direxion Daily 20-Year Treasury Bull 3X
0.00%-42.09%-55.16%-54.32%-9.00%-3.67%
TLT
iShares 20+ Year Treasury Bond ETF
0.56%-14.32%-21.12%-19.71%0.24%1.55%
UPRO
ProShares UltraPro S&P 500
38.71%-21.97%-34.90%-20.84%23.28%30.79%

Stocks/Bonds 40/60 Leveraged PortfolioSharpe 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 Leveraged Portfolio Sharpe ratio is -0.43. 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.


-1.00-0.500.000.501.00MarchAprilMayJuneJulyAugust
-0.92
-0.20
Stocks/Bonds 40/60 Leveraged Portfolio
Benchmark (^GSPC)
Portfolio components

Stocks/Bonds 40/60 Leveraged PortfolioDividends

Stocks/Bonds 40/60 Leveraged Portfolio granted a 0.93% dividend yield in the last twelve months.


PeriodTTM202120202019201820172016201520142013201220112010

Dividend yield

0.93%0.65%1.50%1.31%1.69%1.15%1.22%1.34%1.35%1.74%1.40%1.87%3.42%

Stocks/Bonds 40/60 Leveraged PortfolioDrawdowns Chart

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


-50.00%-40.00%-30.00%-20.00%-10.00%0.00%SeptemberOctoberNovemberDecember2022FebruaryMarchAprilMayJuneJulyAugust
-33.00%
-10.77%
Stocks/Bonds 40/60 Leveraged Portfolio
Benchmark (^GSPC)
Portfolio components

Stocks/Bonds 40/60 Leveraged PortfolioWorst Drawdowns

The table below shows the maximum drawdowns of the Stocks/Bonds 40/60 Leveraged 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 Leveraged Portfolio is 46.01%, recorded on Jun 14, 2022. The portfolio has not recovered from it yet.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-46.01%Dec 28, 2021117Jun 14, 2022
-32.28%Mar 9, 20208Mar 18, 202050May 29, 202058
-19.01%Jan 29, 2018229Dec 24, 201856Mar 18, 2019285
-16.83%Feb 3, 2015165Sep 28, 2015128Apr 1, 2016293
-16.78%Sep 3, 202041Oct 30, 202042Dec 31, 202083
-14.13%May 22, 201364Aug 21, 201385Dec 20, 2013149
-13.41%Aug 24, 201658Nov 14, 2016105Apr 18, 2017163
-11.65%Jan 26, 202127Mar 4, 202127Apr 13, 202154
-10.08%Sep 3, 202126Oct 11, 202114Oct 29, 202140
-9.36%Feb 21, 20205Feb 27, 20206Mar 6, 202011

Stocks/Bonds 40/60 Leveraged PortfolioVolatility Chart

Current Stocks/Bonds 40/60 Leveraged Portfolio volatility is 38.03%. 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.


10.00%20.00%30.00%40.00%50.00%60.00%MarchAprilMayJuneJulyAugust
38.03%
16.68%
Stocks/Bonds 40/60 Leveraged Portfolio
Benchmark (^GSPC)
Portfolio components

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