80/20 Portfolio
Apr 10, 2007 – Sep 23, 2026, Rebalanced annually
| Final balance | CAGR | Max drawdown | Sharpe ratio | |
|---|---|---|---|---|
| 80/20 | $58,751 | 9.53% | −45.26% | 0.66 |
| S&P 500 | $75,807 | 10.97% | −55.19% | 0.63 |
| 80/20 | S&P 500 | |
|---|---|---|
| Final balance | $58,751 | $75,807 |
| CAGR | 9.53% | 10.97% |
| Max drawdown | −45.26% | −55.19% |
| Sharpe ratio | 0.66 | 0.63 |
Allocation
- VTIUS total stock market80%
- BNDUS total bond market20%
Loading the growth chart…
Growth of $10,000
- 80/20
- S&P 500
Metrics
| Return | 80/20 | S&P 500 |
|---|---|---|
| Final balance | $58,751 | $75,807 |
| Total return | 487.51% | 658.07% |
| CAGR | 9.53% | 10.97% |
| Calendar years | 80/20 | S&P 500 |
| Best year | 26.34% | 32.31% |
| Worst year | −28.22% | −36.80% |
| Positive years | 15 of 18 | 15 of 18 |
| Risk | 80/20 | S&P 500 |
| Max drawdown | −45.26% | −55.19% |
| Longest drawdown | 3.3 years | 4.9 years |
| Volatility (annualized) | 15.53% | 19.64% |
| Risk-adjusted | 80/20 | S&P 500 |
| Sharpe ratio | 0.66 | 0.63 |
| Sortino ratio | 0.93 | 0.89 |
| Calmar ratio | 0.21 | 0.20 |
| Return | 80/20 | S&P 500 |
|---|---|---|
| Final balance | $58,751 | $75,807 |
| Total return | 487.51% | 658.07% |
| CAGR | 9.53% | 10.97% |
| Calendar years | 80/20 | S&P 500 |
| Best year | 26.34% | 32.31% |
| Worst year | −28.22% | −36.80% |
| Positive years | 15 of 18 | 15 of 18 |
| Risk | 80/20 | S&P 500 |
|---|---|---|
| Max drawdown | −45.26% | −55.19% |
| Longest drawdown | 3.3 years | 4.9 years |
| Volatility (annualized) | 15.53% | 19.64% |
| Risk-adjusted | 80/20 | S&P 500 |
| Sharpe ratio | 0.66 | 0.63 |
| Sortino ratio | 0.93 | 0.89 |
| Calmar ratio | 0.21 | 0.20 |
Worst drawdowns
| Decline | Peak | Bottom | Recovered |
|---|---|---|---|
| −45.3% | Oct 2007 | Mar 2009 | Jan 2011 |
| −28.5% | Feb 2020 | Mar 2020 | Aug 2020 |
| −23.4% | Dec 2021 | Oct 2022 | Jan 2024 |
| −16.2% | Sep 2018 | Dec 2018 | Apr 2019 |
| −15.5% | Jul 2011 | Oct 2011 | Feb 2012 |
Annual returns
| Year | 80/20 | S&P 500 |
|---|---|---|
| 2007* | +2.82% | +2.57% |
| 2008 | −28.22% | −36.80% |
| 2009 | +23.85% | +26.35% |
| 2010 | +15.18% | +15.06% |
| 2011 | +2.36% | +1.89% |
| 2012 | +13.75% | +15.99% |
| 2013 | +26.34% | +32.31% |
| 2014 | +11.20% | +13.46% |
| 2015 | +0.40% | +1.23% |
| 2016 | +10.76% | +12.00% |
| 2017 | +17.77% | +21.71% |
| 2018 | −4.16% | −4.57% |
| 2019 | +26.30% | +31.22% |
| 2020 | +18.40% | +18.33% |
| 2021 | +20.17% | +28.73% |
| 2022 | −18.24% | −18.18% |
| 2023 | +21.97% | +26.18% |
| 2024 | +19.32% | +24.89% |
| 2025 | +15.10% | +17.72% |
| 2026* | +10.43% | +13.47% |
* Partial year
About the 80/20 Portfolio
The 80/20 portfolio holds 80% stocks and 20% bonds. It's usually aimed at investors with decades to go, who can live with bigger drops in exchange for more growth.
Next to the 60/40, it gained more in most good years and fell further in every bad one.
The 80/20 Portfolio returned 9.5% a year from Apr 2007 to Sep 2026, against 11.0% for the S&P 500. Its biggest drop was 45.3%, against 55.2% for the S&P 500. It took 3.3 years to recover. It beat the S&P 500 in 5 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.