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Stocks/Bonds 40/60 Leveraged Portfolio

Last updated Nov 30, 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

1.24%
0.00%4.60%
10Y Annualized Return

Rank 10 of 54

15.71%
3.45%54.48%
Sharpe Ratio

Rank 36 of 54

-0.77
-1.210.45
Maximum Drawdown

Rank 52 of 54

-62.45%
-91.88%-19.55%

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 $79,234 for a total return of roughly 692.34%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly


-30.00%-20.00%-10.00%0.00%JulyAugustSeptemberOctoberNovember
-19.21%
-5.25%
Stocks/Bonds 40/60 Leveraged Portfolio
Benchmark (^GSPC)
Portfolio components

Stocks/Bonds 40/60 Leveraged PortfolioReturns

As of Nov 30, 2022, the Stocks/Bonds 40/60 Leveraged Portfolio returned -51.71% Year-To-Date and 15.71% of annualized return in the last 10 years.


1M6MYTD1Y5Y10Y
Benchmark1.45%-4.82%-16.96%-13.86%8.56%10.84%
Stocks/Bonds 40/60 Leveraged Portfolio6.34%-20.64%-46.95%-45.29%7.23%13.61%
TMF
Direxion Daily 20-Year Treasury Bull 3X
15.62%-40.86%-70.34%-71.62%-15.96%-7.42%
TLT
iShares 20+ Year Treasury Bond ETF
5.61%-13.28%-29.90%-30.83%-2.08%0.34%
UPRO
ProShares UltraPro S&P 500
2.44%-22.63%-52.02%-46.96%11.02%26.51%

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 -0.77. 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.


-1.50-1.00-0.500.00JulyAugustSeptemberOctoberNovember
-1.32
-0.63
Stocks/Bonds 40/60 Leveraged Portfolio
Benchmark (^GSPC)
Portfolio components

Stocks/Bonds 40/60 Leveraged PortfolioDividends

Stocks/Bonds 40/60 Leveraged Portfolio granted a 1.24% dividend yield in the last twelve months.


PeriodTTM202120202019201820172016201520142013201220112010

Dividend yield

1.24%0.66%1.51%1.31%1.70%1.16%1.23%1.35%1.36%1.75%1.41%1.88%3.44%

Stocks/Bonds 40/60 Leveraged PortfolioDrawdowns Chart

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


-60.00%-50.00%-40.00%-30.00%-20.00%-10.00%0.00%2022FebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovember
-47.53%
-17.49%
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 55.26%, recorded on Oct 20, 2022. The portfolio has not recovered from it yet.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-55.26%Dec 28, 2021206Oct 20, 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 27.01%. 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%JulyAugustSeptemberOctoberNovember
27.01%
13.39%
Stocks/Bonds 40/60 Leveraged Portfolio
Benchmark (^GSPC)
Portfolio components