That was much better than the 6.9% annual return from the day the portfolio was born in 1928 through 1979. This rising correlation scenario was the “end of 60/40” as we know it per BOA. Many portfolio managers, financial planners and investors adhere to a 60/40 investment portfolio. 14.8% annualized (see below). It's a Medium Risk portfolio and it can be replicated with 2 ETFs.. A 5.8% annualized return for a 60/40 portfolio. The 60/40 portfolio is a mainstay of asset management and is designed to give investors the best returns, but at the same time, minimize volatility. Last Update: 31 December 2020. What were the returns? Speaking of 20-year periods, I did look at the history of those as well. In the last 10 years, the portfolio obtained a 7.9% compound annual return, with a 5.87% standard deviation.. 60/40 drawbacks . ... DFA Global Allocation 60/40 Portfolio Institutional Class (DGSIX) ... Year … Using the NBER dates for changes in the economic cycle, I pieced together total returns of a 60/40 portfolio made up the S&P 500 for stocks and 10 Year Treasuries for bonds (with annual rebalancing). The Stocks/Bonds 40/60 Portfolio is exposed for 40% on the Stock Market.. The worst drawdowns for the 60/40 portfolio … I tossed in the S&P 500 and Treasury total returns as a comparison. This equates to 60% invested in stocks and 40% invested in bonds. A model portfolio composed of 60% U.S. stocks and 40% bonds has climbed 13% year-to … There was only one down period from 1928-1932. Current and Historical Performance Performance for DFA Global Allocation 60/40 Por on Yahoo Finance. What shocked me more, however, is the performance compared to a traditional 60/40 stock bond portfolio. In the environment I envision and expect for the next 10-20 years, 60/40 portfolios will be as mobile as a scarecrow. How about the dreaded correlation flip? For the preceding 20-year period (1979-1998), the correlation between stocks and bonds “flipped” to .39. The result? handwringing, in reality it looks like it will be another year of solid performance for 60/40. The 60/40 portfolio saw 19 years with negative total returns during the period from 1928 to 2017 (21 percent of the time). 60/40 finished out its life strong, returning an astonishing 10.2% per year from 1980-2018 with just 5 down years over the past 39 years. I stuck with the same date range – 1929 to 2014. Figure 3 illustrates the annualized rolling 5-year risk and returns of 30/70 portfolios (blue) compared to 60/40 portfolios (yellow). 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