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 | 20% |
TQQQ ProShares UltraPro QQQ | Leveraged Equities | 40% |
Stocks/Bonds 40/60 Leveraged PortfolioPerformance
The chart shows the growth of $10,000 invested in Stocks/Bonds 40/60 Leveraged Portfolio on Feb 12, 2010 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $298,103 for a total return of roughly 2,881.03%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly
Stocks/Bonds 40/60 Leveraged PortfolioReturns
As of Sep 18, 2021, the Stocks/Bonds 40/60 Leveraged Portfolio returned 15.61% Year-To-Date and 31.78% of annualized return in the last 10 years.
| 1M | 6M | YTD | 1Y | 5Y | 10Y | |
|---|---|---|---|---|---|---|
| Stocks/Bonds 40/60 Leveraged Portfolio | 2.89% | 38.05% | 15.61% | 31.90% | 35.40% | 31.78% |
| Portfolio components: | ||||||
TQQQ ProShares UltraPro QQQ | 6.33% | 66.58% | 56.48% | 123.98% | 68.98% | 57.20% |
TMF Direxion Daily 20-Year Treasury Bull 3X | 0.48% | 37.04% | -16.97% | -24.65% | 3.77% | 7.49% |
TLT iShares 20+ Year Treasury Bond ETF | 0.34% | 12.29% | -4.44% | -7.47% | 4.30% | 5.23% |
| Returns over 1 year are annualized | ||||||
Stocks/Bonds 40/60 Leveraged PortfolioDividends
Stocks/Bonds 40/60 Leveraged Portfolio granted a 1.54% dividend yield in the last twelve months, as of Sep 18, 2021.
| Period | TTM | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dividend yield | 1.54% | 1.44% | 1.12% | 1.39% | 1.06% | 1.04% | 1.05% | 1.08% | 1.42% | 1.02% | 1.46% | 2.69% |
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 32.14%, recorded on Mar 18, 2020. It took 29 trading sessions for the portfolio to recover.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -32.14% | Feb 20, 2020 | 20 | Mar 18, 2020 | 29 | Apr 29, 2020 | 49 |
| -21.67% | Aug 30, 2018 | 80 | Dec 24, 2018 | 58 | Mar 20, 2019 | 138 |
| -21.54% | Sep 3, 2020 | 41 | Oct 30, 2020 | 165 | Jun 29, 2021 | 206 |
| -16.69% | Jan 29, 2018 | 9 | Feb 8, 2018 | 87 | Jun 14, 2018 | 96 |
| -16.51% | Sep 29, 2016 | 45 | Dec 1, 2016 | 57 | Feb 24, 2017 | 102 |
| -15.56% | Apr 27, 2015 | 85 | Aug 25, 2015 | 43 | Oct 26, 2015 | 128 |
| -14.43% | May 22, 2013 | 23 | Jun 24, 2013 | 80 | Oct 16, 2013 | 103 |
| -11.56% | Dec 2, 2015 | 32 | Jan 19, 2016 | 51 | Apr 1, 2016 | 83 |
| -10.14% | Sep 7, 2012 | 48 | Nov 15, 2012 | 100 | Apr 12, 2013 | 148 |
| -9.27% | Nov 9, 2011 | 12 | Nov 25, 2011 | 31 | Jan 11, 2012 | 43 |
Stocks/Bonds 40/60 Leveraged PortfolioVolatility Chart
Current Stocks/Bonds 40/60 Leveraged Portfolio volatility is 26.19%. 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.