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50/50 Portfolio

Apr 10, 2007 – Sep 23, 2026, Rebalanced annually

Backtest it
50/50S&P 500
Final balance$39,174$75,807
CAGR7.27%10.97%
Max drawdown−27.82%−55.19%
Sharpe ratio0.770.63

Allocation

  • VTIUS total stock market50%
  • BNDUS total bond market50%

Loading the growth chart…

Growth of $10,000

  • 50/50
  • S&P 500

Metrics

Return50/50S&P 500
Final balance$39,174$75,807
Total return291.74%658.07%
CAGR7.27%10.97%
Calendar years50/50S&P 500
Best year19.75%32.31%
Worst year−16.32%−36.80%
Positive years15 of 1815 of 18
Risk50/50S&P 500
Max drawdown−27.82%−55.19%
Longest drawdown2.4 years4.9 years
Volatility (annualized)9.80%19.64%
Risk-adjusted50/50S&P 500
Sharpe ratio0.770.63
Sortino ratio1.080.89
Calmar ratio0.260.20

Worst drawdowns

DeclinePeakBottomRecovered
−27.8%Oct 2007Mar 2009Mar 2010
−20.6%Dec 2021Oct 2022Mar 2024
−18.6%Feb 2020Mar 2020Jul 2020
−10.1%Aug 2018Dec 2018Mar 2019
−9.8%Dec 2024Apr 2025Jun 2025

Annual returns

Year50/50S&P 500
2007*+4.05%+2.57%
2008−15.06%−36.80%
2009+16.27%+26.35%
2010+11.81%+15.06%
2011+4.45%+1.89%
2012+9.70%+15.99%
2013+15.67%+32.31%
2014+9.18%+13.46%
2015+0.46%+1.23%
2016+7.67%+12.00%
2017+12.61%+21.71%
2018−2.56%−4.57%
2019+19.75%+31.22%
2020+14.40%+18.33%
2021+11.91%+28.73%
2022−16.32%−18.18%
2023+15.85%+26.18%
2024+12.60%+24.89%
2025+12.09%+17.72%
2026*+5.84%+13.47%

* Partial year

About the 50/50 Portfolio

The 50/50 portfolio holds equal parts stocks and bonds. It gives up some of the 60/40's growth for smaller drops. The Couch Potato is the same split with inflation-protected bonds.

In 2008 it lost less than half as much as the stock market. In 2022 bonds fell too, and the gap was much smaller.

The 50/50 Portfolio returned 7.3% a year from Apr 2007 to Sep 2026, against 11.0% for the S&P 500. Its biggest drop was 27.8%, against 55.2% for the S&P 500. It took 2.4 years to recover. It beat the S&P 500 in 4 of 18 full years.

Uses daily closing prices with dividends reinvested. Fund fees are included, but not taxes or trading costs. The backtest starts on Apr 10, 2007, the first day both funds have prices. The S&P 500 is SPY.

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