Loading....
The 50/50 U.S. Stocks/Bonds Portfolio allocates 50% to U.S. stocks for broad market exposure and 50% to U.S. bonds for stability and income. This balanced mix aims to provide moderate growth while maintaining a strong level of risk management.
The backtesting period is limited by the inception date of US Total Stock Market (TOTSTOCKMKT.X): Jun 30, 1926.
A quick overview of the assets within the portfolio, its performance and main metrics.
The portfolio consists of 2 asset classes, which are all equally weighted.
| Name / Ticker | Type | Currency | Inception | Weight |
|---|---|---|---|---|
US Total Stock Market TOTSTOCKMKT.X | Asset Class | USD | Jun 30, 1926 | 50% |
Total Bond Market (US Aggregate Bond) TOTBONDMKT.X | Asset Class | USD | Dec 30, 1870 | 50% |
The backtest spans over a period of 98 years. With an annual return of 8.08% for 50/50 US Stocks/Bonds, the cumulative return over that period amounts to 210385%.
| Portfolio Score | 50/50 US Stocks/Bonds |
|---|---|
| Portfolio Score |
| Returns | 50/50 US Stocks/Bonds |
|---|---|
| Month-to-Date | 2.15% |
| Year-to-Date | 13.15% |
| 3M | 2.76% |
| 6M | 7.94% |
| Annualized Return (3Y) | 3.27% |
| Annualized Return (5Y) | 7.56% |
| Annualized Return (10Y) | 7.21% |
| Annualized Return (20Y) | 7.08% |
| Annualized Return (All, 98.4Y) | 8.08% |
| Risk | 50/50 US Stocks/Bonds |
|---|---|
| Annual Volatility | 5.57% |
| Max Drawdown | -52.54% |
| Sharpe Ratio | 1.4 |
| Sortino Ratio | 2.03 |
| Adjusted Sortino Ratio | 1.44 |
With a projected annual return (CAGR) of 8.08% and an initial investment of $10,000, 50/50 US Stocks/Bonds would have the following projected capital growth over the next 50 years.
| Year | Starting Capital | Ending Capital | Total Gain | Avg Monthly Gain | Cumulative Return |
|---|---|---|---|---|---|
| $10,000 | $10,808 | $808 | $67 | 8.1% | |
| 5 | $14,748 | $15,939 | $1,192 | $99 | 59.4% |
| 10 | $21,750 | $23,507 | $1,757 | $146 | 135% |
| 15 | $32,076 | $34,668 | $2,592 | $216 | 247% |
| 20 | $47,305 | $51,127 | $3,822 | $319 | 411% |
| 50 | $486,706 | $526,032 | $39,326 | $3,277 | 5,160% |
A detailed look at the returns of the portfolio.
| Portfolio | All (98.4Y) | 20Y | 10Y | 5Y | 3Y | 1Y |
|---|---|---|---|---|---|---|
| 50/50 US Stocks/Bonds | 8.08% | 7.08% | 7.21% | 7.56% | 3.27% | 19.22% |
| Year | 50/50 US Stocks/Bonds |
|---|---|
| 1926 | 5.94% |
| 1927 | 19.27% |
| 1928 | 18.98% |
| 1929 | -3.48% |
| 1930 | -10.28% |
| 1931 | -23.08% |
| 1932 | 1.74% |
| 1933 | 30.11% |
| 1934 | 4.95% |
| 1935 | 25.14% |
| Portfolio | Positive Years | Negative Years | Positive Ratio | Best Return Years | Worst Return Years |
| 50/50 US Stocks/Bonds | 79 | 20 | 79.80% | 99 | 99 |
Let's analyze how much risk the portfoliohas.
A drawdown represents the period of decline an investor experiences between a portfolio's peak (new high) and its subsequent low, also known as the valley (before it begins to recover). The table below highlights the five largest drawdowns encountered by the portfolio.
| Drawdown period | Recovery period | Total | |||||
|---|---|---|---|---|---|---|---|
| Max drawdown | Start | Valley | # Months | End | # Months | # Months | Chart |
| -52.54% | 1929-09-02 | 1932-05-31 | 33 | 1935-12-30 | 43 | 76 | |
| -28.14% | 2007-11-01 | 2009-03-09 | 16 | 2010-03-16 | 12 | 28 | |
| -25.91% | 1937-04-01 | 1938-03-31 | 12 | 1942-12-24 | 57 | 69 | |
| -20.5% | 2021-12-28 | 2022-10-14 | 10 | 2024-03-07 | 17 | 26 | |
| -20.12% | 1973-01-02 | 1974-09-30 | 21 | 1975-05-27 | 8 | 29 | |
| -18.86% | 2020-02-20 | 2020-03-18 | 1 | 2020-07-15 | 4 | 5 | |
| -17.79% | 2000-09-05 | 2002-07-23 | 23 | 2003-11-13 | 16 | 38 | |
| -16.47% | 1987-08-26 | 1987-11-30 | 3 | 1989-01-16 | 14 | 17 | |
| -13.97% | 1968-12-02 | 1970-06-30 | 19 | 1970-12-28 | 6 | 25 | |
| -12.8% | 1946-06-03 | 1947-05-30 | 12 | 1949-10-05 | 28 | 40 | |
50/50 US Stocks/Bonds took approximately 46 months on average to recover from major drawdowns of 20% or more. The largest drawdown reached -52.54% and the longest drawdown period lasted 76 months.