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.
Asset 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% |
Performance
The chart shows the growth of $10,000 invested in Stocks/Bonds 40/60 Leveraged Portfolio in Oct 2022 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $99,823 for a total return of roughly 898.23%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly
Returns
As of Mar 18, 2023, the Stocks/Bonds 40/60 Leveraged Portfolio returned 8.46% Year-To-Date and 12.87% of annualized return in the last 10 years.
| 1 month | Year-To-Date | 6 months | 1 year | 5 years (annualized) | 10 years (annualized) | |
|---|---|---|---|---|---|---|
| Benchmark | -5.31% | 2.01% | 0.39% | -10.12% | 7.32% | 9.71% |
| Stocks/Bonds 40/60 Leveraged Portfolio | -4.35% | 8.46% | -4.55% | -33.29% | 7.14% | 12.87% |
| Portfolio components: | ||||||
TMF Direxion Daily 20-Year Treasury Bull 3X | 6.67% | 19.55% | -10.08% | -54.00% | -11.88% | -4.66% |
TLT iShares 20+ Year Treasury Bond ETF | 2.97% | 7.86% | 0.43% | -17.47% | -0.20% | 1.51% |
UPRO ProShares UltraPro S&P 500 | -16.12% | 2.87% | -8.40% | -40.36% | 6.73% | 22.03% |
| Returns over 1 year are annualized | ||||||
Dividends
Stocks/Bonds 40/60 Leveraged Portfolio granted a 1.67% dividend yield in the last twelve months.
| Period | TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dividend yield | 1.67% | 1.61% | 0.66% | 1.12% | 1.32% | 1.72% | 1.17% | 1.24% | 1.36% | 1.37% | 1.76% | 1.42% |
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way.
Worst 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 |
Volatility Chart
Current Stocks/Bonds 40/60 Leveraged Portfolio volatility is 19.48%. 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.