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Stocks/Bonds 40/60 Leveraged Portfolio

Last updated Mar 18, 2023

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 54 of 55

0.65%
0.00%0.94%
Dividend Yield

Rank 43 of 55

1.67%
0.00%4.23%
10Y Annualized Return

Rank 11 of 55

12.87%
2.54%52.85%
Sharpe Ratio

Rank 55 of 55

-0.92
-0.920.64
Maximum Drawdown

Rank 51 of 55

-55.26%
-82.98%-16.15%

Asset Allocation


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


-10.00%-5.00%0.00%5.00%10.00%15.00%20.00%NovemberDecember2023FebruaryMarch
6.99%
6.47%
Stocks/Bonds 40/60 Leveraged Portfolio
Benchmark (^GSPC)
Portfolio components

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 monthYear-To-Date6 months1 year5 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%
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%

Sharpe 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 -0.92. A negative Sharpe ratio means that the risk-free rate is higher than the portfolio's return. This value does not convey any meaningful information.

The chart below displays rolling 12-month Sharpe Ratio.


-1.50-1.00-0.50NovemberDecember2023FebruaryMarch
-0.92
-0.43
Stocks/Bonds 40/60 Leveraged Portfolio
Benchmark (^GSPC)
Portfolio components

Dividends

Stocks/Bonds 40/60 Leveraged Portfolio granted a 1.67% dividend yield in the last twelve months.


PeriodTTM20222021202020192018201720162015201420132012

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.


-60.00%-50.00%-40.00%-30.00%-20.00%-10.00%NovemberDecember2023FebruaryMarch
-47.22%
-18.34%
Stocks/Bonds 40/60 Leveraged Portfolio
Benchmark (^GSPC)
Portfolio components

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, 2021206Oct 20, 2022
-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

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.


10.00%20.00%30.00%40.00%50.00%60.00%70.00%NovemberDecember2023FebruaryMarch
19.48%
21.17%
Stocks/Bonds 40/60 Leveraged Portfolio
Benchmark (^GSPC)
Portfolio components