60/40 Portfolio
Traditional balanced model
In brief
The classic balanced portfolio: 60% growth assets and 40% high-quality bonds.
Profile sources: Portfolio Charts
- Published
- Last reviewed
At a glance
2 asset sleeves
Review annually and rebalance when allocations drift materially.
Growth assets
60%
Bonds & reserves
40%
Other diversifiers
0%
Target allocation
What the portfolio holds
Global stocks
VTVT
60%
U.S. investment-grade bonds
BNDBND
40%
Tickers are liquid U.S.-listed examples, not recommendations or exact historical fund selections.
Allocation sources: Portfolio Charts
Decision context
Potential advantages and trade-offs
These observations follow from the displayed allocation and implementation. They are not a recommendation or a prediction of future performance.
Potential advantages
- Uses only 2 sleeves, which makes the displayed target allocation straightforward to understand and maintain.
- Combines growth assets with bonds or reserves instead of depending on one broad asset class.
- Includes non-U.S. exposure, reducing exclusive dependence on one national market.
- Publishes explicit target weights, making drift and rebalancing decisions measurable.
Important trade-offs
- The largest sleeve is 60% of the portfolio, so its behavior can dominate the result.
- Representative ETF results can differ from the originator's indexes, funds, taxes, fees, and execution.
Portfolio Visualizer
Compare historical performance
Backtest this allocation beside two familiar U.S. equity benchmarks. The comparison starts with $10,000, reinvests dividends, and rebalances annually.
Growth of $10,000
Monthly total returns · maximum available history
Portfolio 1
60/40 Portfolio
Target allocation from this profile
Portfolio 2
S&P 500
SPY benchmark
Portfolio 3
Nasdaq-100
QQQ benchmark
Portfolio Visualizer opens in a new tab because its site does not support embedded frames. Results begin at the latest common inception date for the selected funds.
Sources and context
Target allocations are educational examples, not personalized advice. Fund availability, taxes, trading costs, account type, time horizon, and capacity for loss can all change the appropriate implementation. Historical diversification does not guarantee future results.
Sources document the strategy, underlying methodology, or the representative funds used here. ETF tickers are illustrative U.S.-listed implementations and may differ from an originator’s original funds or current model.