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 on Jan 5, 2010 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $93,813 for a total return of roughly 838.13%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly
Stocks/Bonds 40/60 Leveraged PortfolioReturns
As of May 17, 2022, the Stocks/Bonds 40/60 Leveraged Portfolio returned -37.19% Year-To-Date and 16.93% of annualized return in the last 10 years.
| 1M | YTD | 6M | 1Y | 5Y | 10Y | |
|---|---|---|---|---|---|---|
| Benchmark | -8.76% | -15.91% | -14.41% | -3.97% | 10.80% | 11.90% |
| Stocks/Bonds 40/60 Leveraged Portfolio | -14.18% | -37.19% | -35.57% | -20.24% | 14.32% | 16.93% |
| Portfolio components: | ||||||
TMF Direxion Daily 20-Year Treasury Bull 3X | -12.30% | -53.59% | -53.19% | -42.53% | -6.08% | -3.01% |
TLT iShares 20+ Year Treasury Bond ETF | -3.89% | -21.35% | -20.71% | -14.11% | 1.11% | 1.69% |
UPRO ProShares UltraPro S&P 500 | -25.81% | -43.82% | -41.22% | -17.50% | 20.93% | 31.68% |
| Returns over 1 year are annualized | ||||||
Stocks/Bonds 40/60 Leveraged PortfolioDividends
Stocks/Bonds 40/60 Leveraged Portfolio granted a 0.89% dividend yield in the last twelve months, as of May 17, 2022.
| Period | TTM | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dividend yield | 0.89% | 0.65% | 1.50% | 1.30% | 1.69% | 1.15% | 1.21% | 1.33% | 1.34% | 1.73% | 1.39% | 1.86% | 3.41% |
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 38.69%, recorded on May 9, 2022. The portfolio has not recovered from it yet.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -38.69% | Dec 28, 2021 | 92 | May 9, 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 47.81%. 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.