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
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.
The earliest data available for this chart is Apr 10, 2007, corresponding to the inception date of BND
Returns By Period
As of May 6, 2025, the Stocks/Bonds 60/40 Portfolio returned -1.94% Year-To-Date and 7.99% of annualized return in the last 10 years.
| YTD | 1M | 6M | 1Y | 5Y* | 10Y* | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | -3.93% | 11.36% | -1.09% | 10.19% | 14.74% | 10.35% |
| Stocks/Bonds 60/40 Portfolio | -1.94% | 6.77% | -0.08% | 8.97% | 9.55% | 7.99% |
| Portfolio components: | ||||||
BND Vanguard Total Bond Market ETF | 2.25% | -1.34% | 1.60% | 5.62% | -0.83% | 1.45% |
VTI Vanguard Total Stock Market ETF | -4.01% | 11.57% | -0.93% | 10.81% | 15.96% | 11.67% |
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% | 0.73% | -1.94% | |||||||
| 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 54, 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 | 1.24 | 1.80 | 1.22 | 0.52 | 3.19 |
VTI Vanguard Total Stock Market ETF | 0.66 | 1.06 | 1.16 | 0.69 | 2.68 |
Dividends
Dividend yield
Stocks/Bonds 60/40 Portfolio provided a 2.31% dividend yield over the last twelve months.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2.31% | 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 | 3.75% | 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 | 1.35% | 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.
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 5.18%.
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 current Stocks/Bonds 60/40 Portfolio volatility is 9.08%, representing the average percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.
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 classic 60/40 stock-to-bond allocation, as reflected in the correlation matrix. The correlation between the bond position (BND) and the stock position (VTI) is slightly negative at -0.15, which is beneficial for diversification because it indicates that bonds and stocks tend to move somewhat independently or in opposite directions, reducing overall portfolio volatility.
The portfolio's correlation with VTI is very high at 0.98, suggesting that the portfolio's returns are heavily influenced by the stock component. Conversely, the correlation with BND is effectively zero (-0.0), indicating that bonds contribute to diversification by not moving in tandem with the overall portfolio returns. This implies that the stock portion dominates the portfolio's behavior, which is expected given the 60% allocation to stocks.
There are no heavily correlated positions within the portfolio that would hurt diversification since the two main asset classes show low to negative correlation. The low correlation between bonds and stocks helps reduce risk and smooth returns over time. However, the near-perfect correlation between the portfolio and the stock position indicates concentration risk on the equity side, meaning that the portfolio's performance will largely mirror stock market movements.
Overall, the portfolio achieves a reasonable balance between risk and diversification through its mix of stocks and bonds, but it remains somewhat concentrated in equities, which dominate the portfolio's return profile.