60/40 Portfolio
Apr 10, 2007 – Nov 12, 2026, Rebalanced annually, BND starts Apr 10, 2007
| Final balance | CAGR | Max drawdown | Sharpe ratio | |
|---|---|---|---|---|
| 60/40 | $44,930 | +7.97% | −33.93% | 0.72 |
| S&P 500 | $74,751 | +10.81% | −55.19% | 0.62 |
| Final balance | CAGR | Max drawdown | Sharpe ratio | |
|---|---|---|---|---|
| 60/40 | $44,930 | +7.97% | −33.93% | 0.72 |
| S&P 500 | $74,751 | +10.81% | −55.19% | 0.62 |
| 60/40 | S&P 500 | |
|---|---|---|
| Final balance | $44,930 | $74,751 |
| CAGR | +7.97% | +10.81% |
| Max drawdown | −33.93% | −55.19% |
| Sharpe ratio | 0.72 | 0.62 |
Loading the growth chart…
Growth of $10,000
Key metrics
| Return | 60/40 | S&P 500 |
|---|---|---|
| Final balance | $44,930 | $74,751 |
| Total return | +349.30% | +647.51% |
| CAGR | +7.97% | +10.81% |
| 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 (daily, annualized) | 11.60% | 19.62% |
| Risk-adjusted | 60/40 | S&P 500 |
|---|---|---|
| Sharpe ratio | 0.72 | 0.62 |
| Sortino ratio | 1.01 | 0.88 |
| Calmar ratio | 0.23 | 0.20 |
Annual returns
| Year | 60/40 | S&P 500 |
|---|---|---|
| 2017 | +14.15% | +21.71% |
| 2018 | −3.19% | −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 to Nov 12 | +6.72% | +11.89% |
Worst drawdowns
| Decline | Peak | Bottom | Recovered | Length |
|---|---|---|---|---|
| −33.9% | Oct 2007 | Mar 2009 | Apr 2010 | 2.5 years |
| −21.8% | Feb 2020 | Mar 2020 | Jul 2020 | 5 months |
| −21.6% | Dec 2021 | Oct 2022 | Feb 2024 | 2.2 years |
| −12.1% | Sep 2018 | Dec 2018 | Mar 2019 | 6 months |
| −11.6% | Dec 2024 | Apr 2025 | Jun 2025 | 7 months |
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.
Its worst fall took 2.5 years to recover, and it beat the S&P 500 in 4 of 18 full years.
Daily closes with dividends reinvested and fund fees included, before taxes and trading costs.