Stocks/Bonds 60/40 Portfolio
The 60/40 Portfolio is a simple, balanced portfolio with a 60% equity and 40% fixed income allocation.
Asset Allocation
| Position | Category/Sector | Target Weight |
|---|---|---|
BND Vanguard Total Bond Market ETF | Total Bond Market | 40% |
VTI Vanguard Total Stock Market ETF | Large Cap Growth Equities | 60% |
Performance
Performance Chart
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The earliest data available for this chart is Apr 10, 2007, corresponding to the inception date of BND
Returns By Period
As of May 27, 2025, the Stocks/Bonds 60/40 Portfolio returned -0.32% Year-To-Date and 8.17% of annualized return in the last 10 years.
| YTD | 1M | 6M | 1Y | 5Y* | 10Y* | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | -1.34% | 5.02% | -3.08% | 9.39% | 14.45% | 10.68% |
| Stocks/Bonds 60/40 Portfolio | -0.32% | 3.09% | -2.34% | 8.30% | 9.24% | 8.17% |
| Portfolio components: | ||||||
BND Vanguard Total Bond Market ETF | 1.68% | -1.03% | 0.43% | 4.55% | -1.10% | 1.40% |
VTI Vanguard Total Stock Market ETF | -1.30% | 5.32% | -3.69% | 10.31% | 15.52% | 11.97% |
Monthly Returns
The table below presents the monthly returns of Stocks/Bonds 60/40 Portfolio, with color gradation from worst to best to easily spot seasonal factors. Returns are adjusted for dividends.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2.23% | -0.58% | -3.90% | -0.34% | 2.40% | -0.32% | |||||||
| 2024 | 0.64% | 2.82% | 2.40% | -3.66% | 3.66% | 2.31% | 2.05% | 1.90% | 1.78% | -1.34% | 4.79% | -2.60% | 15.39% |
| 2023 | 5.42% | -2.51% | 2.69% | 0.88% | -0.22% | 3.92% | 2.20% | -1.45% | -3.92% | -2.21% | 7.51% | 4.63% | 17.53% |
| 2022 | -4.47% | -1.94% | 0.78% | -7.08% | 0.19% | -5.51% | 6.35% | -3.34% | -7.13% | 4.12% | 4.56% | -3.81% | -16.97% |
| 2021 | -0.52% | 1.49% | 1.97% | 3.66% | 0.36% | 1.97% | 1.56% | 1.89% | -3.39% | 4.58% | -0.58% | 2.05% | 15.84% |
| 2020 | 0.72% | -4.27% | -8.78% | 8.54% | 3.41% | 1.63% | 4.01% | 3.93% | -2.24% | -1.41% | 7.70% | 2.97% | 15.92% |
| 2019 | 5.38% | 2.07% | 1.63% | 2.34% | -3.21% | 4.68% | 0.91% | -0.17% | 0.83% | 1.39% | 2.27% | 1.69% | 21.39% |
| 2018 | 3.10% | -2.68% | -0.89% | -0.08% | 1.89% | 0.40% | 1.98% | 2.35% | -0.09% | -4.89% | 1.46% | -4.79% | -2.62% |
| 2017 | 1.28% | 2.64% | 0.02% | 0.97% | 0.91% | 0.65% | 1.39% | 0.38% | 1.48% | 1.46% | 2.03% | 0.97% | 15.13% |
| 2016 | -3.18% | 0.32% | 4.71% | 0.57% | 1.09% | 0.91% | 2.72% | 0.02% | 0.17% | -1.74% | 1.91% | 1.41% | 9.04% |
| 2015 | -0.85% | 3.07% | -0.54% | 0.27% | 0.64% | -1.47% | 1.40% | -3.99% | -1.53% | 4.90% | 0.24% | -1.42% | 0.43% |
| 2014 | -1.37% | 3.14% | 0.25% | 0.34% | 1.70% | 1.66% | -1.35% | 3.01% | -1.53% | 1.99% | 1.87% | 0.00% | 9.99% |
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.
Risk-Adjusted Performance
Risk-Adjusted Performance Rank
The current rank of Stocks/Bonds 60/40 Portfolio is 45, indicating average performance compared to other portfolios on our website. Here’s a breakdown of how it compares using common performance measures.
Risk-Adjusted Performance Indicators
This table presents a comparison of risk-adjusted performance metrics for positions. Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio | |
|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 0.88 | 1.16 | 1.14 | 0.34 | 2.01 |
VTI Vanguard Total Stock Market ETF | 0.55 | 0.82 | 1.12 | 0.51 | 1.90 |
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Dividends
Dividend yield
Stocks/Bonds 60/40 Portfolio provided a 2.30% dividend yield over the last twelve months.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2.30% | 2.23% | 2.10% | 2.04% | 1.52% | 1.74% | 2.15% | 2.35% | 2.04% | 2.16% | 2.22% | 2.17% |
| Portfolio components: | ||||||||||||
BND Vanguard Total Bond Market ETF | 3.77% | 3.67% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% |
VTI Vanguard Total Stock Market ETF | 1.32% | 1.27% | 1.44% | 1.67% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% | 1.76% |
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 34.00%, occurring on Mar 9, 2009. Recovery took 418 trading sessions.
The current Stocks/Bonds 60/40 Portfolio drawdown is 3.61%.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -34% | Oct 10, 2007 | 355 | Mar 9, 2009 | 418 | Nov 2, 2010 | 773 |
| -22.45% | Feb 20, 2020 | 23 | Mar 23, 2020 | 84 | Jul 22, 2020 | 107 |
| -21.57% | Dec 28, 2021 | 202 | Oct 14, 2022 | 339 | Feb 22, 2024 | 541 |
| -12.84% | Dec 9, 2024 | 82 | Apr 8, 2025 | — | — | — |
| -11.87% | Sep 21, 2018 | 65 | Dec 24, 2018 | 59 | Mar 21, 2019 | 124 |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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Diversification
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. This number of effective assets suggests a highly concentrated portfolio, where a few assets dominate the allocation, potentially increasing the portfolio's risk due to lack of diversification.
Asset Correlations Table
| ^GSPC | BND | VTI | Portfolio | |
|---|---|---|---|---|
| ^GSPC | 1.00 | -0.16 | 0.99 | 0.97 |
| BND | -0.16 | 1.00 | -0.15 | -0.00 |
| VTI | 0.99 | -0.15 | 1.00 | 0.98 |
| Portfolio | 0.97 | -0.00 | 0.98 | 1.00 |
AI Insight on Diversification
The portfolio is moderately diversified, with a clear distinction between its bond and stock components. The correlation matrix shows that the bond position (BND) has a slight negative correlation with the stock position (VTI) at -0.15, which supports diversification by reducing overall portfolio volatility. The portfolio itself is highly correlated with VTI at 0.98, indicating that the stock portion dominates the portfolio's behavior and returns. Conversely, the correlation between the portfolio and BND is effectively zero, reflecting the balancing effect bonds have within the portfolio.
The low correlation between BND and VTI is beneficial for diversification, as bonds tend to provide stability when stocks are volatile. However, the near-perfect correlation between the portfolio and VTI suggests that the portfolio's performance is heavily influenced by the stock component, potentially limiting the risk-reduction benefits of the bond allocation. This dominance implies that the portfolio leans more toward equity risk and return characteristics despite the nominal 60/40 split.
Overall, while the portfolio includes both stocks and bonds, the strong influence of the stock position and the minimal correlation between the portfolio and bonds indicate that diversification benefits exist but are somewhat constrained by the equity dominance. This makes the portfolio moderately diversified but with a concentration toward equity risk exposure.