60/40 Portfolio
Apr 10, 2007 – Sep 23, 2026, Rebalanced annually
| Final balance | CAGR | Max drawdown | Sharpe ratio | |
|---|---|---|---|---|
| 60/40 | $45,161 | 8.06% | −33.93% | 0.73 |
| S&P 500 | $75,807 | 10.97% | −55.19% | 0.63 |
| 60/40 | S&P 500 | |
|---|---|---|
| Final balance | $45,161 | $75,807 |
| CAGR | 8.06% | 10.97% |
| Max drawdown | −33.93% | −55.19% |
| Sharpe ratio | 0.73 | 0.63 |
Allocation
- VTIUS total stock market60%
- BNDUS total bond market40%
Loading the growth chart…
Growth of $10,000
- 60/40
- S&P 500
Metrics
| Return | 60/40 | S&P 500 |
|---|---|---|
| Final balance | $45,161 | $75,807 |
| Total return | 351.61% | 658.07% |
| CAGR | 8.06% | 10.97% |
| Calendar years | 60/40 | S&P 500 |
| Best year | 21.93% | 32.31% |
| Worst year | −19.45% | −36.80% |
| Positive years | 15 of 18 | 15 of 18 |
| Risk | 60/40 | S&P 500 |
| Max drawdown | −33.93% | −55.19% |
| Longest drawdown | 2.5 years | 4.9 years |
| Volatility (annualized) | 11.60% | 19.64% |
| Risk-adjusted | 60/40 | S&P 500 |
| Sharpe ratio | 0.73 | 0.63 |
| Sortino ratio | 1.02 | 0.89 |
| Calmar ratio | 0.24 | 0.20 |
| Return | 60/40 | S&P 500 |
|---|---|---|
| Final balance | $45,161 | $75,807 |
| Total return | 351.61% | 658.07% |
| CAGR | 8.06% | 10.97% |
| Calendar years | 60/40 | S&P 500 |
| Best year | 21.93% | 32.31% |
| Worst year | −19.45% | −36.80% |
| Positive years | 15 of 18 | 15 of 18 |
| Risk | 60/40 | S&P 500 |
|---|---|---|
| Max drawdown | −33.93% | −55.19% |
| Longest drawdown | 2.5 years | 4.9 years |
| Volatility (annualized) | 11.60% | 19.64% |
| Risk-adjusted | 60/40 | S&P 500 |
| Sharpe ratio | 0.73 | 0.63 |
| Sortino ratio | 1.02 | 0.89 |
| Calmar ratio | 0.24 | 0.20 |
Worst drawdowns
| Decline | Peak | Bottom | Recovered |
|---|---|---|---|
| −33.9% | Oct 2007 | Mar 2009 | Apr 2010 |
| −21.8% | Feb 2020 | Mar 2020 | Jul 2020 |
| −21.6% | Dec 2021 | Oct 2022 | Feb 2024 |
| −12.1% | Sep 2018 | Dec 2018 | Mar 2019 |
| −11.6% | Dec 2024 | Apr 2025 | Jun 2025 |
Annual returns
| Year | 60/40 | S&P 500 |
|---|---|---|
| 2007* | +3.64% | +2.57% |
| 2008 | −19.45% | −36.80% |
| 2009 | +18.80% | +26.35% |
| 2010 | +12.94% | +15.06% |
| 2011 | +3.75% | +1.89% |
| 2012 | +11.05% | +15.99% |
| 2013 | +19.23% | +32.31% |
| 2014 | +9.86% | +13.46% |
| 2015 | +0.44% | +1.23% |
| 2016 | +8.70% | +12.00% |
| 2017 | +14.33% | +21.71% |
| 2018 | −3.09% | −4.57% |
| 2019 | +21.93% | +31.22% |
| 2020 | +15.73% | +18.33% |
| 2021 | +14.66% | +28.73% |
| 2022 | −16.96% | −18.18% |
| 2023 | +17.89% | +26.18% |
| 2024 | +14.84% | +24.89% |
| 2025 | +13.09% | +17.72% |
| 2026* | +7.37% | +13.47% |
* Partial year
About the 60/40 Portfolio
The 60/40 portfolio holds 60% stocks and 40% bonds. It's the standard balanced portfolio.
Bonds usually soften stock market falls, as they did in 2008. In 2022 they didn't, and stocks and bonds fell together.
The 60/40 Portfolio returned 8.1% a year from Apr 2007 to Sep 2026, against 11.0% for the S&P 500. Its biggest drop was 33.9%, against 55.2% for the S&P 500. It took 2.5 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.