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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.

Expense Ratio

Rank 52 of 53

0.65%
0.00%0.94%
Dividend Yield

Rank 28 of 53

1.55%
0.00%2.83%
10Y Annualized Return

Rank 7 of 53

24.43%
4.75%39.53%
Sharpe Ratio

Rank 30 of 53

1.61
0.432.39
Maximum Drawdown

Rank 48 of 53

-32.28%
-38.24%-10.21%

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 on Jan 5, 2010 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $145,403 for a total return of roughly 1,354.03%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly


Stocks/Bonds 40/60 Leveraged Portfolio
Benchmark (S&P 500)
Portfolio components

Stocks/Bonds 40/60 Leveraged PortfolioReturns

As of Nov 27, 2021, the Stocks/Bonds 40/60 Leveraged Portfolio returned 24.72% Year-To-Date and 24.43% of annualized return in the last 10 years.


1M6MYTD1Y5Y10Y
Benchmark0.43%9.37%22.33%26.59%15.74%14.46%
Stocks/Bonds 40/60 Leveraged Portfolio4.65%21.46%24.72%30.73%27.93%24.43%
TMF
Direxion Daily 20-Year Treasury Bull 3X
10.19%24.97%-16.19%-15.78%11.14%6.14%
TLT
iShares 20+ Year Treasury Bond ETF
3.87%9.41%-3.32%-3.70%6.77%4.73%
UPRO
ProShares UltraPro S&P 500
1.70%30.55%79.70%98.66%39.90%41.79%

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 1.61. A Sharpe ratio greater than 1.0 is considered acceptable.

The chart below displays rolling 12-month Sharpe Ratio.


Stocks/Bonds 40/60 Leveraged Portfolio
Benchmark (S&P 500)
Portfolio components

Stocks/Bonds 40/60 Leveraged PortfolioDividends

Stocks/Bonds 40/60 Leveraged Portfolio granted a 1.55% dividend yield in the last twelve months, as of Nov 27, 2021.


PeriodTTM20202019201820172016201520142013201220112010

Dividend yield

1.55%1.48%1.26%1.60%1.06%1.09%1.18%1.15%1.45%1.04%1.48%2.76%

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 Portfolio
Benchmark (S&P 500)
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 32.28%, recorded on Mar 18, 2020. It took 50 trading sessions for the portfolio to recover.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-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
-8.71%Jan 20, 201016Feb 10, 201023Mar 16, 201039

Stocks/Bonds 40/60 Leveraged PortfolioVolatility Chart

Current Stocks/Bonds 40/60 Leveraged Portfolio volatility is 63.36%. 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.


Stocks/Bonds 40/60 Leveraged Portfolio
Benchmark (S&P 500)
Portfolio components

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