Stocks/Bonds 40/60 Leveraged Portfolio
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.
Stocks/Bonds 40/60 Leveraged PortfolioAsset Allocation
| Position | Category/Sector | Weight |
|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | Government Bonds | 40% |
TMF Direxion Daily 20-Year Treasury Bull 3X | Leveraged Bonds, Leveraged | 20% |
UPRO ProShares UltraPro S&P 500 | Leveraged Equities, Leveraged | 40% |
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
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.
| 1M | 6M | YTD | 1Y | 5Y | 10Y | |
|---|---|---|---|---|---|---|
| Benchmark | 1.45% | -4.82% | -16.96% | -13.86% | 8.56% | 10.84% |
| Stocks/Bonds 40/60 Leveraged Portfolio | 6.34% | -20.64% | -46.95% | -45.29% | 7.23% | 13.61% |
| Portfolio components: | ||||||
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% |
| Returns over 1 year are annualized | ||||||
Stocks/Bonds 40/60 Leveraged PortfolioDividends
Stocks/Bonds 40/60 Leveraged Portfolio granted a 1.24% dividend yield in the last twelve months.
| Period | TTM | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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.
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, 2021 | 206 | Oct 20, 2022 | — | — | — |
| -32.28% | Mar 9, 2020 | 8 | Mar 18, 2020 | 50 | May 29, 2020 | 58 |
| -19.01% | Jan 29, 2018 | 229 | Dec 24, 2018 | 56 | Mar 18, 2019 | 285 |
| -16.83% | Feb 3, 2015 | 165 | Sep 28, 2015 | 128 | Apr 1, 2016 | 293 |
| -16.78% | Sep 3, 2020 | 41 | Oct 30, 2020 | 42 | Dec 31, 2020 | 83 |
| -14.13% | May 22, 2013 | 64 | Aug 21, 2013 | 85 | Dec 20, 2013 | 149 |
| -13.41% | Aug 24, 2016 | 58 | Nov 14, 2016 | 105 | Apr 18, 2017 | 163 |
| -11.65% | Jan 26, 2021 | 27 | Mar 4, 2021 | 27 | Apr 13, 2021 | 54 |
| -10.08% | Sep 3, 2021 | 26 | Oct 11, 2021 | 14 | Oct 29, 2021 | 40 |
| -9.36% | Feb 21, 2020 | 5 | Feb 27, 2020 | 6 | Mar 6, 2020 | 11 |
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.