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% |
Find the right asset allocation for Stocks/Bonds 60/40 Portfolio
Add portfolio to the optimizer to find optimal allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
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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 Jun 13, 2026, the Stocks/Bonds 60/40 Portfolio returned 5.97% Year-To-Date and 9.89% of annualized return in the last 10 years.
| Position | 1D | 1M | YTD | 6M | 1Y | 3Y* | 5Y* | 10Y* |
|---|---|---|---|---|---|---|---|---|
Benchmark S&P 500 Index | 0.50% | -0.93% | 8.56% | 8.85% | 24.33% | 19.37% | 11.84% | 13.61% |
Portfolio Stocks/Bonds 60/40 Portfolio | 0.29% | 0.02% | 5.97% | 6.18% | 17.39% | 14.05% | 7.55% | 9.89% |
| Portfolio components: | ||||||||
BND Vanguard Total Bond Market ETF | -0.12% | 0.45% | 0.52% | 0.91% | 4.77% | 4.17% | 0.03% | 1.58% |
VTI Vanguard Total Stock Market ETF | 0.57% | -0.28% | 9.62% | 9.69% | 26.27% | 20.60% | 12.20% | 15.02% |
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 +0.70%. At this rate, an investment would double in approximately 8.3 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% | -0.97% | 5.97% | ||||||
| 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 2.39%, 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 (64.35%) - typical of diversified or defensive assets.
- This portfolio generated an annualized alpha of 2.39% 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
- 2.39%
- Beta
- 0.60
- R²
- 0.95
- Upside Capture
- 65.58%
- Downside Capture
- 64.35%
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 55 for risk / return — on par with similar Portfolios. You're getting a typical balance of risk and reward. Not a standout, but not a red flag either — a reasonable choice if other factors align with your goals.
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 | 2.01 | 1.86 | +0.15 |
| Sortino ratioReturn per unit of downside risk | 2.84 | 2.53 | +0.31 |
| Omega ratioGain probability vs. loss probability | 1.37 | 1.34 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 2.83 | 2.53 | +0.30 |
| Martin ratioReturn relative to average drawdown | 12.71 | 11.37 | +1.34 |
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 | 36 | 1.18 | 1.77 | 1.21 | 1.65 | 4.81 |
VTI Vanguard Total Stock Market ETF | 67 | 1.97 | 2.67 | 1.35 | 2.79 | 12.52 |
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Dividends
Dividend yield
Stocks/Bonds 60/40 Portfolio provided a 2.20% dividend yield over the last twelve months.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2.20% | 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 | 3.96% | 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 | 1.03% | 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 1.29%.
Related event | Drawdown | Fall | Recovery | Underwater |
|---|---|---|---|---|
Financial crisis2007–2009 | -34.99%Mar 2009 | 1y 5mo | 1y 7mo | 2y 12moOct 2007 - Oct 2010 |
COVID crash2020 | -22.70%Mar 2020 | 1mo 2d | 3mo 24d | 4mo 26dFeb 2020 - Jul 2020 |
Bear market2022 | -21.24%Oct 2022 | 9mo 20d | 1y 3mo | 2y 1moDec 2021 - Feb 2024 |
Rate-hike selloffLate 2018 | -11.96%Dec 2018 | 3mo 4d | 2mo 27d | 6mo 1dSep 2018 - Mar 2019 |
2025 selloff2025 | -11.75%Apr 2025 | 4mo | 2mo 5d | 6mo 5dDec 2024 - Jun 2025 |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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Diversification
AI Analysis
Thesis
The portfolio is making the familiar two-asset bet that U.S. equities and core bonds are different engines of return, and that their modest negative correlation is enough to make the whole arrangement feel less theatrical than 100% stocks.
The numbers
- The diversification ratio is 1.12 at 1Y and 1.16 since inception, which is only modest diversification benefit, and it sits around the 18th-37th percentiles on the platform.
- Effective asset count is 1.92 out of 2, so the weights are not mechanically concentrated; the issue is not one position dominating, it is that the pair is only mildly different in portfolio terms.
- BND (Total Bond Market) has portfolio correlation of 0.02 while VTI (Large Cap Blend Equities) is 0.98, which is the math saying one sleeve does the work and the other mainly stands there and decorates the covariance matrix.
What works
- The BND/VTI pair has a real hedge property: the pairwise correlation is -0.13, so equity drawdowns are not the only moving part.
- The two sleeves sit in different macro regimes, which matters when equity volatility is coming from growth shocks rather than purely market-wide repricing.
What does not
- The diversification benefit is modest, not dramatic; portfolios with this profile are usually described as balanced, which is finance’s polite way of saying “two large, correlated risk engines with a small brake attached.”
- The 1Y diversification ratio at 1.12 is a little weaker than the longer-window figures, suggesting the bond/equity hedge has not been especially strong recently.
Stress Scenario
- If inflation or rate shocks hit both discount rates and bond prices at the same time, the usual stock-bond offset can weaken, and the portfolio starts behaving more like a single broad macro bet than two independent sleeves.
Worth knowing
- Portfolios with just two major sleeves often look cleaner in correlation tables than they do in lived volatility.
- The low effective count is not the problem here; the problem is that the two assets are so broad that they only partly diversify one another.
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 | 1.11 | 1.15 | 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 -0.14.
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