Asset Allocation
| Position | Category/Sector | Target Weight |
|---|---|---|
VTI Vanguard Total Stock Market ETF | Large Cap Blend Equities | 60% |
BND Vanguard Total Bond Market ETF | Total Bond Market | 40% |
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Performance Chart
The chart shows the growth of an initial investment of $10,000 in Stocks/Bonds 60/40 Portfolio, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends. The portfolio is rebalanced when any position deviates by more than 10.0% from its target allocation.
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Returns By Period
As of Jul 24, 2026, the Stocks/Bonds 60/40 Portfolio returned 5.44% Year-To-Date and 9.47% of annualized return in the last 10 years.
| Position | 1D | 1M | 6M | YTD | 1Y | 3Y* | 5Y* | 10Y* | ALL TIME* |
|---|---|---|---|---|---|---|---|---|---|
Benchmark S&P 500 Index | -1.21% | 0.58% | 7.16% | 8.22% | 16.50% | 17.60% | 10.92% | 13.07% | 8.07% |
Portfolio Stocks/Bonds 60/40 Portfolio | -0.76% | -0.06% | 4.34% | 5.44% | 11.97% | 12.81% | 6.94% | 9.47% | 8.13% |
| Portfolio components: | |||||||||
BND Vanguard Total Bond Market ETF | -0.21% | -1.00% | -0.65% | -0.51% | 2.90% | 3.67% | -0.37% | 1.38% | 2.99% |
VTI Vanguard Total Stock Market ETF | -1.13% | 0.56% | 7.63% | 9.43% | 18.10% | 18.79% | 11.45% | 14.46% | 9.55% |
Monthly Returns
Based on dividend-adjusted daily data since Apr 10, 2007, Stocks/Bonds 60/40 Portfolio's average daily return is +0.03%, while the average monthly return is +0.69%. At this rate, an investment would double in approximately 8.4 years.
Historically, 67% of months were positive and 33% were negative. The best month was Apr 2020 with a return of +9.1%, while the worst month was Oct 2008 at -11.4%. The longest winning streak lasted 15 consecutive months, and the longest losing streak was 5 months.
On a daily basis, Stocks/Bonds 60/40 Portfolio closed higher 56% of trading days. The best single day was Oct 13, 2008 with a return of +9.4%, while the worst single day was Mar 12, 2020 at -8.0%.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 1.04% | 0.34% | -3.69% | 6.20% | 3.20% | -0.10% | -1.36% | 5.44% | |||||
| 2025 | 2.07% | -0.27% | -3.50% | -0.05% | 3.46% | 3.70% | 1.27% | 1.89% | 2.49% | 1.59% | 0.42% | -0.13% | 13.49% |
| 2024 | 0.62% | 2.60% | 2.30% | -3.56% | 3.52% | 2.20% | 2.09% | 1.91% | 1.77% | -1.42% | 4.44% | -2.48% | 14.54% |
| 2023 | 5.49% | -2.49% | 2.76% | 0.90% | -0.18% | 3.91% | 2.14% | -1.41% | -3.87% | -2.18% | 7.45% | 4.61% | 17.74% |
| 2022 | -4.44% | -1.90% | 0.89% | -7.05% | 0.29% | -5.58% | 6.54% | -3.33% | -7.20% | 4.37% | 4.62% | -3.84% | -16.47% |
| 2021 | -0.52% | 1.26% | 1.68% | 3.36% | 0.35% | 1.85% | 1.53% | 1.64% | -3.08% | 4.01% | -0.78% | 2.17% | 14.11% |
Benchmark Metrics
Stocks/Bonds 60/40 Portfolio has an annualized alpha of 2.35%, beta of 0.60, and R2 of 0.95 versus S&P 500 Index. Calculated based on daily prices since April 10, 2007.
- This portfolio participates in less of S&P 500 Index's moves in both directions, but captures a larger share of gains (65.58%) than losses (64.38%) - typical of diversified or defensive assets.
- This portfolio generated an annualized alpha of 2.35% versus S&P 500 Index - delivering returns beyond what market exposure alone would predict.
- Beta of 0.60 indicates this portfolio moves significantly less than S&P 500 Index - a genuinely defensive profile with reduced participation in both market rallies and downturns.
- Alpha
- 2.35%
- Beta
- 0.60
- R²
- 0.95
- Upside Capture
- 65.58%
- Downside Capture
- 64.38%
Expense Ratio
Stocks/Bonds 60/40 Portfolio has an expense ratio of 0.03%, which is considered low. Below, you can find the expense ratios of the portfolio's funds side by side and easily compare their relative costs.
Return for Risk
Risk / Return Rank
Stocks/Bonds 60/40 Portfolio ranks 36 for risk / return — below 36% of Portfolios on our site. The returns aren't fully compensating for the risk involved. This isn't necessarily a dealbreaker, but factor it into your decision — especially if you're risk-averse.
Return / Risk — by metrics
The table below presents risk-adjusted performance metrics for Stocks/Bonds 60/40 Portfolio and compares them with S&P 500 Index.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| Portfolio | Benchmark | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | 1.44 | 1.31 | +0.13 |
| Sortino ratioReturn per unit of downside risk | 2.07 | 1.84 | +0.23 |
| Omega ratioGain probability vs. loss probability | 1.26 | 1.24 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 2.07 | 1.82 | +0.25 |
| Martin ratioReturn relative to average drawdown | 9.04 | 7.83 | +1.21 |
How much return does each position deliver for the risk it carries? Higher values mean better reward for the risk taken.
| Position | Risk / Return Rank | Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio |
|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 29 | 0.78 | 1.17 | 1.14 | 1.09 | 2.86 |
VTI Vanguard Total Stock Market ETF | 56 | 1.41 | 1.98 | 1.25 | 2.04 | 8.86 |
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Dividends
Dividend yield
Stocks/Bonds 60/40 Portfolio provided a 2.25% dividend yield over the last twelve months.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2.25% | 2.22% | 2.23% | 2.10% | 2.04% | 1.58% | 1.81% | 2.15% | 2.35% | 2.04% | 2.16% | 2.22% |
| Portfolio components: | ||||||||||||
BND Vanguard Total Bond Market ETF | 4.02% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
VTI Vanguard Total Stock Market ETF | 1.07% | 1.12% | 1.27% | 1.44% | 1.66% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% |
Drawdowns
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.
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Worst Drawdowns
The table below displays the maximum drawdowns of the Stocks/Bonds 60/40 Portfolio. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.
The maximum drawdown for the Stocks/Bonds 60/40 Portfolio was 34.99%, occurring on Mar 9, 2009. Recovery took 401 trading sessions.
The current Stocks/Bonds 60/40 Portfolio drawdown is 1.79%.
Drawdown | Fall | Recovery | Underwater | Related event |
|---|---|---|---|---|
-34.99%Mar 2009 | 1y 5mo | 1y 7mo | 2y 12moOct 2007 - Oct 2010 | Financial crisis2007–2009 |
-22.70%Mar 2020 | 1mo 2d | 3mo 24d | 4mo 26dFeb 2020 - Jul 2020 | COVID crash2020 |
-21.24%Oct 2022 | 9mo 20d | 1y 3mo | 2y 1moDec 2021 - Feb 2024 | Bear market2022 |
-11.96%Dec 2018 | 3mo 4d | 2mo 27d | 6mo 1dSep 2018 - Mar 2019 | Rate-hike selloffLate 2018 |
-11.75%Apr 2025 | 4mo | 2mo 5d | 6mo 5dDec 2024 - Jun 2025 | 2025 selloff2025 |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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Diversification
AI Analysis
The gist
The portfolio is a plain 60/40 split between U.S. equities and core bonds, which is a serious bet that the market can be divided into “growth engine” and “shock absorber” and that this division will keep working. The math is polite about it: some diversification benefit exists, but not much.
The numbers
- Diversification ratio: 1.10 to 1.16, which is low by platform standards; the 16.6th to 36.9th percentiles say the portfolio is only modestly diversified.
- Effective asset count: 1.92 of 2, so the weights are balanced, but the correlation structure still behaves almost like two separate sleeves rather than a genuinely blended risk engine.
- BND and VTI correlation: -0.13; that is helpful, but only enough to make the portfolio less bad in stress, not magically independent.
The good
- The two positions sit in different economic lanes: Vanguard Total Bond Market ETF (BND) is mostly duration and credit, while Vanguard Total Stock Market ETF (VTI) is mostly equity beta.
- The low cross-correlation means the bond sleeve does real work when equity volatility shows up.
- The portfolio is simple enough that its risk budget is easy to read without needing a spreadsheet and a cup of patience.
The bad
- The portfolio still lives or dies on VTI’s 60% weight; its position-to-portfolio correlation of 0.98 says the equity sleeve is the portfolio.
- The diversification ratio is only slightly above the “not much happening here” zone, so the bond sleeve softens moves more than it changes the risk character.
- In some sense, the portfolio is two broad market bets wearing different hats.
The ugly
- A regime with rising rates and falling stocks is awkward here: BND can lose its defensive properties just as VTI is under pressure, and the negative correlation can turn into a much less comforting number.
- If inflation is the stress, the bond sleeve and the equity sleeve can become disappointingly similar in the worst possible way: both trying to reprice at once.
Next steps
- Portfolios with this correlation profile are often paired with exposures whose return drivers sit outside nominal rates and broad equity beta.
- The low DR suggests that most of the diversification work is coming from the asset-class split itself, not from anything more granular.
- Portfolios like this tend to look best when the bond sleeve is actually allowed to behave like a bond sleeve, which markets occasionally remember to prevent.
Diversification Metrics
Number of Effective Assets
The portfolio contains 2 assets, with an effective number of assets of 1.92, reflecting the diversification based on asset allocation. Your capital is spread almost evenly across your holdings, indicating a well-balanced allocation. Note that true diversification also depends on the correlations between assets — check the diversification ratio below.
Diversification Ratio
1Y | 3Y | 5Y | 10Y | All Time | |
|---|---|---|---|---|---|
Diversification Ratio | 1.10 | 1.14 | 1.15 | 1.14 | 1.16 |
The portfolio has a diversification ratio of 1.16, placing it in the bottom quartile across portfolios — positions are highly correlated. Consider adding assets from different classes or sectors to reduce risk.
Stocks/Bonds 60/40 Portfolio correlation to the S&P 500 Index
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.97 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.96 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.96 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.97 |
Correlation (All Time) Calculated using the full available price history since Apr 10, 2007 | 0.97 |
Benchmark Correlations
Correlation vs. S&P 500 Index. VTI has the highest benchmark correlation at 0.99, while BND has the lowest at -0.13.
Asset Correlations Table
Find what Stocks/Bonds 60/40 Portfolio is missing
See which holdings overlap, where Stocks/Bonds 60/40 Portfolio is concentrated, and which low-correlation assets could fill the gaps.
Analyze Diversification