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Stocks/Bonds 60/40 Portfolio

Last updated Dec 7, 2023

The 60/40 Portfolio is a simple, balanced portfolio with a 60% equity and 40% fixed income allocation.

Asset Allocation


BND 40%VTI 60%BondBondEquityEquity
PositionCategory/SectorWeight
BND
Vanguard Total Bond Market ETF
Total Bond Market40%
VTI
Vanguard Total Stock Market ETF
Large Cap Growth Equities60%

Performance

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 Quarterly


-4.00%-2.00%0.00%2.00%4.00%6.00%8.00%JulyAugustSeptemberOctoberNovemberDecember
4.82%
6.60%
Stocks/Bonds 60/40 Portfolio
Benchmark (^GSPC)
Portfolio components

The earliest data available for this chart is Apr 10, 2007, corresponding to the inception date of BND

Returns

As of Dec 7, 2023, the Stocks/Bonds 60/40 Portfolio returned 12.94% Year-To-Date and 7.53% of annualized return in the last 10 years.


Year-To-Date1 month6 months1 year5 years (annualized)10 years (annualized)
^GSPC
N/AN/AN/AN/AN/AN/A
Stocks/Bonds 60/40 Portfolio12.94%4.58%4.82%10.54%8.33%7.53%
BND
Vanguard Total Bond Market ETF
3.40%4.16%1.45%1.78%0.82%1.50%
VTI
Vanguard Total Stock Market ETF
19.55%4.85%7.03%16.59%12.76%11.16%

Monthly Returns Heatmap


JanFebMarAprMayJunJulAugSepOctNovDec
2023-0.20%3.98%2.16%-1.44%-3.89%-2.19%7.44%

Sharpe Ratio

The current Stocks/Bonds 60/40 Portfolio Sharpe ratio is 1.03. A Sharpe ratio greater than 1.0 is considered acceptable.

-1.000.001.002.003.001.03

The Sharpe ratio of Stocks/Bonds 60/40 Portfolio lies between the 25th and 75th percentiles. It indicates that the portfolio's risk-adjusted performance is in line with the majority of portfolios. This suggests a balanced approach to risk and return, which might be suitable for a broad range of investors.


Rolling 12-month Sharpe Ratio0.000.501.00JulyAugustSeptemberOctoberNovemberDecember
1.03
1.00
Stocks/Bonds 60/40 Portfolio
Benchmark (^GSPC)
Portfolio components

Dividend yield

Stocks/Bonds 60/40 Portfolio granted a 2.12% dividend yield in the last twelve months.


TTM20222021202020192018201720162015201420132012
Stocks/Bonds 60/40 Portfolio2.12%2.04%1.52%1.74%2.15%2.35%2.04%2.16%2.22%2.17%2.16%2.58%
BND
Vanguard Total Bond Market ETF
3.09%2.60%1.97%2.22%2.72%2.81%2.54%2.51%2.57%2.79%2.78%3.24%
VTI
Vanguard Total Stock Market ETF
1.48%1.66%1.21%1.42%1.78%2.04%1.71%1.92%1.98%1.76%1.74%2.13%

Expense Ratio

The Stocks/Bonds 60/40 Portfolio has an expense ratio of 0.03% which is considered to be low. Below you can find the expense ratios of portfolio funds side-by-side and effortlessly compare their relative costs.


0.03%
0.00%2.15%

Risk-Adjusted Performance

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 ratioSortino ratioOmega ratioCalmar ratioUlcer Index
BND
Vanguard Total Bond Market ETF
0.29
VTI
Vanguard Total Stock Market ETF
1.05

Asset Correlations Table

The table below displays the correlation coefficients between the individual components of the portfolio, the entire portfolio, and the chosen benchmark.

BNDVTI
BND1.00-0.19
VTI-0.191.00

Drawdowns Chart

The Drawdowns chart displays portfolio losses from any high point along the way.


-14.00%-12.00%-10.00%-8.00%-6.00%-4.00%JulyAugustSeptemberOctoberNovemberDecember
-6.45%
-5.15%
Stocks/Bonds 60/40 Portfolio
Benchmark (^GSPC)
Portfolio components

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 35.22%, occurring on Mar 9, 2009. Recovery took 407 trading sessions.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-35.22%Oct 10, 2007355Mar 9, 2009407Oct 18, 2010762
-21.85%Feb 20, 202023Mar 23, 202079Jul 15, 2020102
-21.5%Dec 28, 2021202Oct 14, 2022
-11.55%Sep 21, 201865Dec 24, 201855Mar 15, 2019120
-10.8%Jul 8, 201161Oct 3, 201173Jan 18, 2012134

Volatility Chart

The current Stocks/Bonds 60/40 Portfolio volatility is 2.46%, 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.


1.50%2.00%2.50%3.00%3.50%4.00%4.50%5.00%JulyAugustSeptemberOctoberNovemberDecember
2.46%
2.92%
Stocks/Bonds 60/40 Portfolio
Benchmark (^GSPC)
Portfolio components
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