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
The chart shows the growth of an initial investment of $10,000 in Stocks/Bonds 80/20 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 9, 2025, the Stocks/Bonds 80/20 Portfolio returned -2.62% Year-To-Date and 10.18% of annualized return in the last 10 years.
| YTD | 1M | 6M | 1Y | 5Y* | 10Y* | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | -3.70% | 13.67% | -5.18% | 9.18% | 14.14% | 10.43% |
| Stocks/Bonds 80/20 Portfolio | -2.62% | 11.31% | -4.00% | 9.15% | 12.86% | 10.18% |
| Portfolio components: | ||||||
VTI Vanguard Total Stock Market ETF | -3.64% | 14.17% | -5.14% | 10.03% | 15.30% | 11.75% |
BND Vanguard Total Bond Market ETF | 2.13% | 0.32% | 1.30% | 5.43% | -0.86% | 1.49% |
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% | 1.42% | -2.62% | |||||||
| 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 | 0.51 | 0.84 | 1.12 | 0.52 | 1.99 |
BND Vanguard Total Bond Market ETF | 1.03 | 1.48 | 1.18 | 0.43 | 2.60 |
Dividends
Dividend yield
Stocks/Bonds 80/20 Portfolio provided a 1.83% dividend yield over the last twelve months.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 1.83% | 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 | 1.35% | 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 | 3.76% | 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.
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 6.32%.
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 current Stocks/Bonds 80/20 Portfolio volatility is 9.71%, 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 1.47, 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 | -0.16 | -0.11 |
| VTI | 0.99 | -0.16 | 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 that enhances risk management. The correlation matrix shows that the bond position (BND) has a low to slightly negative correlation with the portfolio (-0.11) and an even more negative correlation with the stock position (VTI) at -0.16. This negative correlation between bonds and stocks is beneficial for diversification, as it helps reduce overall portfolio volatility by offsetting movements in one asset class with the other.
The stock position (VTI) is perfectly correlated with the portfolio (correlation of 1.0), indicating that it dominates the portfolio's behavior and drives most of its returns and risks. This dominance is consistent with the portfolio's 80/20 stock-to-bond allocation, meaning the portfolio's performance closely mirrors that of the stock market represented by VTI.
There are no heavily correlated positions that hurt diversification since the main components—stocks and bonds—have low or negative correlations with each other. This structure supports a classic diversification benefit. However, the portfolio's heavy tilt toward stocks means it is somewhat concentrated in equity risk despite the presence of bonds.
In summary, the portfolio benefits from the diversification provided by the low correlation between bonds and stocks, but the high concentration in stocks means it remains sensitive to equity market fluctuations. This balance is typical for an 80/20 stocks/bonds allocation, offering growth potential with some risk mitigation through bond exposure.