Stocks/Bonds 80/20 Portfolio
The 80/20 Portfolio is a simple, balanced portfolio with an 80% equity and 20% fixed income allocation.
Asset Allocation
| Position | Category/Sector | Target Weight |
|---|---|---|
BND Vanguard Total Bond Market ETF | Total Bond Market | 20% |
VTI Vanguard Total Stock Market ETF | Large Cap Growth Equities | 80% |
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 31, 2025, the Stocks/Bonds 80/20 Portfolio returned 0.75% Year-To-Date and 10.48% of annualized return in the last 10 years.
| YTD | 1M | 6M | 1Y | 5Y* | 10Y* | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | 0.51% | 6.15% | -2.00% | 12.92% | 14.19% | 10.85% |
| Stocks/Bonds 80/20 Portfolio | 0.75% | 4.94% | -2.07% | 12.17% | 12.77% | 10.48% |
| Portfolio components: | ||||||
VTI Vanguard Total Stock Market ETF | 0.38% | 6.25% | -2.68% | 13.67% | 15.23% | 12.13% |
BND Vanguard Total Bond Market ETF | 2.49% | -0.67% | 0.77% | 5.82% | -1.00% | 1.54% |
Monthly Returns
The table below presents the monthly returns of Stocks/Bonds 80/20 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 | 2.60% | -1.19% | -4.80% | -0.52% | 4.94% | 0.75% | |||||||
| 2024 | 0.98% | 4.32% | 2.79% | -3.97% | 4.16% | 2.66% | 1.98% | 2.00% | 1.90% | -1.07% | 5.67% | -2.80% | 19.75% |
| 2023 | 6.49% | -2.43% | 2.70% | 1.02% | 0.24% | 5.93% | 3.25% | -1.80% | -4.55% | -2.52% | 8.88% | 5.11% | 23.57% |
| 2022 | -5.61% | -2.33% | 2.54% | -8.55% | -0.12% | -7.44% | 8.46% | -3.62% | -8.62% | 6.93% | 4.99% | -5.27% | -18.80% |
| 2021 | -0.41% | 2.48% | 2.98% | 4.50% | 0.42% | 2.28% | 1.67% | 2.49% | -4.05% | 5.87% | -1.27% | 3.29% | 21.77% |
| 2020 | 0.26% | -6.46% | -11.74% | 11.13% | 4.55% | 2.02% | 5.02% | 5.79% | -3.01% | -1.73% | 10.11% | 3.99% | 18.96% |
| 2019 | 7.19% | 2.93% | 1.50% | 3.26% | -5.11% | 6.07% | 1.20% | -1.29% | 1.38% | 1.81% | 3.16% | 2.34% | 26.70% |
| 2018 | 4.11% | -3.31% | -1.52% | 0.22% | 2.37% | 0.58% | 2.76% | 2.98% | 0.08% | -6.38% | 1.78% | -7.35% | -4.34% |
| 2017 | 1.53% | 3.09% | 0.04% | 1.01% | 0.95% | 0.78% | 1.60% | 0.28% | 1.90% | 1.77% | 2.47% | 1.05% | 17.72% |
| 2016 | -4.98% | 0.09% | 6.39% | 0.63% | 1.54% | 0.46% | 3.61% | 0.15% | 0.19% | -2.06% | 3.77% | 1.65% | 11.56% |
| 2015 | -2.18% | 4.95% | -0.98% | 0.51% | 1.11% | -1.62% | 1.61% | -5.48% | -2.51% | 7.01% | 0.49% | -1.92% | 0.38% |
| 2014 | -2.63% | 4.35% | 0.43% | 0.15% | 1.98% | 2.33% | -1.81% | 3.81% | -1.93% | 2.52% | 2.30% | -0.03% | 11.79% |
Expense Ratio
Stocks/Bonds 80/20 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 80/20 Portfolio is 41, 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 | |
|---|---|---|---|---|---|
VTI Vanguard Total Stock Market ETF | 0.68 | 0.98 | 1.14 | 0.63 | 2.36 |
BND Vanguard Total Bond Market ETF | 1.10 | 1.60 | 1.19 | 0.47 | 2.79 |
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Dividends
Dividend yield
Stocks/Bonds 80/20 Portfolio provided a 1.78% dividend yield over the last twelve months.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 1.78% | 1.75% | 1.77% | 1.85% | 1.36% | 1.58% | 1.96% | 2.19% | 1.87% | 2.04% | 2.10% | 1.97% |
| Portfolio components: | ||||||||||||
VTI Vanguard Total Stock Market ETF | 1.29% | 1.27% | 1.44% | 1.67% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% | 1.76% |
BND Vanguard Total Bond Market ETF | 3.74% | 3.67% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% |
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 80/20 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 80/20 Portfolio was 45.07%, occurring on Mar 9, 2009. Recovery took 467 trading sessions.
The current Stocks/Bonds 80/20 Portfolio drawdown is 3.08%.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -45.07% | Oct 10, 2007 | 355 | Mar 9, 2009 | 467 | Jan 12, 2011 | 822 |
| -29.89% | Feb 20, 2020 | 23 | Mar 23, 2020 | 94 | Aug 5, 2020 | 117 |
| -24.25% | Dec 28, 2021 | 202 | Oct 14, 2022 | 301 | Dec 27, 2023 | 503 |
| -16.69% | Sep 21, 2018 | 65 | Dec 24, 2018 | 70 | Apr 5, 2019 | 135 |
| -16.56% | May 2, 2011 | 108 | Oct 3, 2011 | 85 | Feb 3, 2012 | 193 |
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 1.47, 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 | 0.99 |
| BND | -0.16 | 1.00 | -0.15 | -0.11 |
| VTI | 0.99 | -0.15 | 1.00 | 1.00 |
| Portfolio | 0.99 | -0.11 | 1.00 | 1.00 |
AI Insight on Diversification
The portfolio is moderately diversified with a clear balance between stocks and bonds, as reflected in the 80/20 allocation. The negative correlations between the bond ETF (BND) and the stock ETF (VTI) at -0.15, as well as between BND and the overall portfolio at -0.11, indicate that bonds provide a diversification benefit by moving somewhat independently of stocks. This low to negative correlation helps reduce overall portfolio volatility.
The perfect correlation of 1.0 between the portfolio and VTI suggests that the portfolio’s returns are heavily driven by the stock component, which is expected given the 80% allocation to stocks. This dominance means the portfolio’s performance will closely track the stock market, with bonds playing a smaller but stabilizing role.
There are no heavily correlated positions that would hurt diversification within the portfolio, as the two main asset classes show low or negative correlations. However, the portfolio is not highly diversified beyond this stocks/bonds split, since the portfolio’s returns are essentially synonymous with the stock position. This indicates a concentrated exposure to equities despite the presence of bonds.
In summary, the portfolio benefits from the diversification effect of including bonds, which have low to negative correlation with stocks, but remains largely equity-driven and concentrated in that asset class. It is a moderately diversified portfolio with a dominant stock position that will largely dictate its risk and return profile.