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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 99 years. With an annual return of 8.11% for 50/50 US Stocks/Bonds, the cumulative return over that period amounts to 232347%.
| Portfolio Score | 50/50 US Stocks/Bonds |
|---|---|
| Portfolio Score |
| Returns | 50/50 US Stocks/Bonds |
|---|---|
| Month-to-Date | 1.1% |
| Year-to-Date | 11.45% |
| 3M | 4.86% |
| 6M | 12.77% |
| Annualized Return (3Y) | 13.34% |
| Annualized Return (5Y) | 8.21% |
| Annualized Return (10Y) | 8.06% |
| Annualized Return (20Y) | 7.42% |
| Annualized Return (All, 99.3Y) | 8.11% |
| Risk | 50/50 US Stocks/Bonds |
|---|---|
| Annual Volatility | 5.63% |
| Max Drawdown | -52.54% |
| Sharpe Ratio | 1.4 |
| Sortino Ratio | 2.01 |
| Adjusted Sortino Ratio | 1.42 |
With a projected annual return (CAGR) of 8.11% 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 | $10,811 | $811 | $68 | 8.1% | |
| 5 | $14,768 | $15,966 | $1,198 | $100 | 59.7% |
| 10 | $21,810 | $23,579 | $1,769 | $147 | 136% |
| 15 | $32,210 | $34,822 | $2,612 | $218 | 248% |
| 20 | $47,568 | $51,426 | $3,858 | $321 | 414% |
| 50 | $493,507 | $533,530 | $40,023 | $3,335 | 5,235% |
A detailed look at the returns of the portfolio.
| Portfolio | All (99.3Y) | 20Y | 10Y | 5Y | 3Y | 1Y |
|---|---|---|---|---|---|---|
| 50/50 US Stocks/Bonds | 8.11% | 7.42% | 8.06% | 8.21% | 13.34% | 11.7% |
| Year | 50/50 US Stocks/Bonds |
|---|---|
| 1926 | 5.93% |
| 1927 | 19.27% |
| 1928 | 18.98% |
| 1929 | -3.48% |
| 1930 | -10.28% |
| 1931 | -23.08% |
| 1932 | 1.75% |
| 1933 | 30.1% |
| 1934 | 4.95% |
| 1935 | 25.14% |
| Portfolio | Positive Years | Negative Years | Positive Ratio | Best Return Years | Worst Return Years |
| 50/50 US Stocks/Bonds | 80 | 20 | 80.00% | 100 | 100 |
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.