Stocks/Bonds 40/60 To EUR Hedged Portfolio: ETF allocation and returns

Period: January 1950 - August 2024 (~75 years)
Consolidated Returns as of 31 August 2024
Rebalancing: at every Jan 1^st
Currency: EUR

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1.00€
Initial Capital
September 1994
6.59€
Final Capital
August 2024
6.49%
Yearly Return
6.84
Std Deviation
-19.38%
Max Drawdown
32 months
Recovery Period

1.00€
Initial Capital
January 1950
258.19€
Final Capital
August 2024
7.72%
Yearly Return
7.25
Std Deviation
-19.38%
Max Drawdown
32 months
Recovery Period

The Stocks/Bonds 40/60 To EUR Hedged Portfolio can be implemented with 2 ETFs. This portfolio has a medium risk, signifying moderate fluctuations in value. It is suitable for investors with a balanced approach to risk and return, seeking steady growth while tolerating some level of volatility.

The asset allocation is the following: 40% on the Stock Market, 60% on Fixed Income, 0% on Commodities. In general, bonds are useful for mitigating overall portfolio risk, especially if they are issued by national entities or highly reliable companies. This portfolio has a 60% allocation to bonds, leading to its classification as medium risk.

As of August 2024, in the previous 30 Years, the Stocks/Bonds 40/60 To EUR Hedged Portfolio obtained a 6.49% compound annual return, with a 6.84% standard deviation. It suffered a maximum drawdown of -19.38% that required 32 months to be recovered.

Table of contents

Disclaimer: The simulations on this website are provided in good faith but should NOT be taken as investment advice. We are not liable for any errors or actions based on this information. The authors of the website are not affiliated with the portfolio creators, who are the sole owners of their intellectual property. The translation of asset allocations into ETFs is based on the interpretation of LazyPortfolioETF.com and may not exactly reflect the original intent of the portfolio creators. Content is for informational, educational, illustrative, and entertainment purposes only.

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Asset Allocation and ETFs

The Stocks/Bonds 40/60 To EUR Hedged Portfolio has the following asset allocation:

          40% Stocks
        
          60% Fixed Income
        
          0% Commodities

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The Stocks/Bonds 40/60 To EUR Hedged Portfolio can be implemented with the following ETFs:

Weight (%)	ETF Ticker	ETF Currency	ETF Name	Investment Themes (Orig.Currency)
40.00	XD9E.DE	EUR Hedged	Xtrackers MSCI USA EUR Hedged	Equity, U.S., Large Cap (USD)
60.00	CEBW.DE	EUR Hedged	iShares US Aggregate Bond EUR Hedged	Bond, U.S., All-Term (USD)

Most of Lazy Portfolios are made of common components (asset classes), very simple and well defined. For a more complete view, find out the most common ETFs you can use to build your portfolio.

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Portfolio and ETF Returns as of Aug 31, 2024

The Stocks/Bonds 40/60 To EUR Hedged Portfolio guaranteed the following returns.

Returns are calculated in EUR, assuming:

no fees or capital gain taxes.
rebalancing: at every January 1^st. How do returns change with different rebalancing strategies?
dividend reinvestment, when applicable.
the actual Euro Inflation rates.

STOCKS/BONDS 40/60 TO EUR HEDGED PORTFOLIO

Time Period: 1 January 1950 - 31 August 2024 (~75 years)

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			Chg (%)		Return (%)	Return (%) as of Aug 31, 2024
			1 Day	*Time ET^()**	Sep 2024	YTD (8M)	1M	6M	1Y	5Y	10Y	30Y	MAX (~75Y)
Stocks/Bonds 40/60 To EUR Hedged Portfolio			n.a.		n.a.	7.31	1.56	5.86	12.23	4.46	4.45	6.49	7.72
Euro Inflation Adjusted return						5.19	1.56	4.04	9.99	0.64	2.01	4.35	4.94
*Components*
XD9E.DE	EUR Hedged	Xtrackers MSCI USA EUR Hedged	n.a.	-	n.a.	16.07	1.14	9.50	22.95	12.83	10.41	9.66	10.99
CEBW.DE	EUR Hedged	iShares US Aggregate Bond EUR Hedged	n.a.	-	n.a.	1.46	1.88	3.24	5.06	-1.42	0.24	3.70	4.92
Returns over 1 year are annualized
(*) Eastern Time (ET - America/New York)
Euro Inflation is updated to Jul 2024. Pending updates, the monthly inflation is set at 0% for the subsequent periods. Inflation (annualized) is 1Y: 2.03% , 5Y: 3.79% , 10Y: 2.40% , 30Y: 2.05%

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Capital Growth as of Aug 31, 2024

An investment of 1€, from September 1994 to August 2024, would be worth 6.59€, with a total return of 559.21% (6.49% annualized).

The Inflation Adjusted Capital would be 3.58€, with a net total return of 258.28% (4.35% annualized).

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An investment of 1€, from January 1950 to August 2024, would be worth 258.19€, with a total return of 25718.70% (7.72% annualized).

The Inflation Adjusted Capital would be 36.61€, with a net total return of 3560.98% (4.94% annualized).

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Portfolio Metrics as of Aug 31, 2024

Metrics of Stocks/Bonds 40/60 To EUR Hedged Portfolio, updated as of 31 August 2024, provide a comprehensive overview of the portfolio's performance and risk characteristics.

These metrics include detailed data on returns, volatility, drawdowns and other key performance indicators. By examining them, you can gain insights into how the portfolio has performed over various time periods and understand its risk profile.

Metrics are calculated based on monthly returns, assuming:

no fees or capital gain taxes.
rebalancing: at every January 1^st. How do returns change with different rebalancing strategies?
dividend reinvestment, when applicable.
the actual Euro Inflation rates.

STOCKS/BONDS 40/60 TO EUR HEDGED PORTFOLIO

Advanced Metrics

Time Period: 1 January 1950 - 31 August 2024 (~75 years)

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	Metrics as of Aug 31, 2024
	YTD (8M)	1M	3M	6M	1Y	3Y	5Y	10Y	20Y	30Y	MAX (~75Y)
Investment Return (%)	7.31	1.56	5.35	5.86	12.23	0.02	4.46	4.45	5.58	6.49	7.72
Growth of 1€	1.07	1.02	1.05	1.06	1.12	1.00	1.24	1.55	2.96	6.59	258.19
Infl. Adjusted Return (%)	5.19	1.56	5.16	4.04	9.99	-5.14	0.64	2.01	3.39	4.35	4.94
Euro Inflation (%)	2.02	0.00	0.18	1.74	2.03	5.43	3.79	2.40	2.11	2.05	2.65
Pending updates, the monthly inflation of Aug 2024 and beyond is set at 0%. Returns / Inflation rates over 1 year are annualized.
DRAWDOWN Inflation Adjusted: Inflation Adjusted:				Current	1Y	3Y	5Y	10Y	20Y	30Y	MAX
Deepest Drawdown Depth (%)				-1.32	-5.94	-19.38	-19.38	-19.38	-19.38	-19.38	-19.38
Start to Recovery (# months)				32*	3	32*	32*	32*	32*	32*	32*
Start (yyyy mm)					2023 09	2022 01	2022 01	2022 01	2022 01	2022 01	2022 01
Start to Bottom (# months)					2	9	9	9	9	9	9
Bottom (yyyy mm)					2023 10	2022 09	2022 09	2022 09	2022 09	2022 09	2022 09
Bottom to End (# months)					1	23	23	23	23	23	23
End (yyyy mm)					2023 11	-	-	-	-	-	-
Longest Drawdown Depth (%)					same	same	same	same	same	-8.15	-8.15
Start to Recovery (# months)					same	same	same	same	same	33	33
Start (yyyy mm)					2023 09	2022 01	2022 01	2022 01	2022 01	2000 09	2000 09
Start to Bottom (# months)					2	9	9	9	9	25	25
Bottom (yyyy mm)					2023 10	2022 09	2022 09	2022 09	2022 09	2002 09	2002 09
Bottom to End (# months)					1	23	23	23	23	8	8
End (yyyy mm)					2023 11	-	-	-	-	2003 05	2003 05
Longest negative period (# months)					4	35	45	45	53	60	60
Start (yyyy mm)					2024 01	2021 09	2020 02	2020 02	2004 10	2004 03	2004 03
End (yyyy mm)					2024 04	2024 07	2023 10	2023 10	2009 02	2009 02	2009 02
Annualized Return (%)					-0.14	-0.51	-0.17	-0.17	-0.17	-0.07	-0.07
Drawdowns / Negative periods marked with * are in progress
Deepest Drawdown Depth (%)				-14.63	-6.32	-27.29	-27.29	-27.29	-27.29	-27.29	-27.75
Start to Recovery (# months)				36*	3	36*	36*	36*	36*	36*	121
Start (yyyy mm)					2023 09	2021 09	2021 09	2021 09	2021 09	2021 09	1973 01
Start to Bottom (# months)					2	26	26	26	26	26	21
Bottom (yyyy mm)					2023 10	2023 10	2023 10	2023 10	2023 10	2023 10	1974 09
Bottom to End (# months)					1	10	10	10	10	10	100
End (yyyy mm)					2023 11	-	-	-	-	-	1983 01
Longest Drawdown Depth (%)					same	same	same	same	same	-12.34	same
Start to Recovery (# months)					same	same	same	same	same	39	same
Start (yyyy mm)					2023 09	2021 09	2021 09	2021 09	2021 09	2000 09	1973 01
Start to Bottom (# months)					2	26	26	26	26	25	21
Bottom (yyyy mm)					2023 10	2023 10	2023 10	2023 10	2023 10	2002 09	1974 09
Bottom to End (# months)					1	10	10	10	10	14	100
End (yyyy mm)					2023 11	-	-	-	-	2003 11	1983 01
Longest negative period (# months)					4	0	57	104	104	121	216
Start (yyyy mm)					2024 01	-	2019 09	2015 03	2015 03	1999 02	1964 07
End (yyyy mm)					2024 04	-	2024 05	2023 10	2023 10	2009 02	1982 06
Annualized Return (%)					-4.82	---	-0.38	-0.04	-0.04	-0.05	-0.06
Drawdowns / Negative periods marked with * are in progress
RISK INDICATORS					1Y	3Y	5Y	10Y	20Y	30Y	MAX
Standard Deviation (%)					9.84	10.19	9.35	7.50	6.94	6.84	7.25
Sharpe Ratio					0.70	-0.32	0.25	0.40	0.60	0.61	0.51
Sortino Ratio					0.97	-0.44	0.33	0.53	0.78	0.81	0.70
Ulcer Index					2.12	11.27	8.85	6.39	5.25	4.54	4.03
Ratio: Return / Standard Deviation					1.24	0.00	0.48	0.59	0.80	0.95	1.07
Ratio: Return / Deepest Drawdown					2.06	0.00	0.23	0.23	0.29	0.33	0.40
Positive Months (%)					75.00	55.55	65.00	66.66	68.33	67.77	65.40
Positive Months					9	20	39	80	164	244	586
Negative Months					3	16	21	40	76	116	310
LONG TERM RETURNS Inflation Adjusted: Inflation Adjusted:					1Y	3Y	5Y	10Y	20Y	30Y	MAX
Best 10 Years Return (%) - Annualized								4.45	8.48	9.07	13.55
Worst 10 Years Return (%) - Annualized								4.45	3.46	2.36	2.36
Best 10 Years Return (%) - Annualized								2.01	7.14	7.14	10.57
Worst 10 Years Return (%) - Annualized								2.01	1.20	0.25	-2.07
TIMEFRAMES Inflation Adjusted: Inflation Adjusted:		1M	3M	6M	1Y	3Y	5Y	10Y	20Y	30Y	MAX
··· As of Aug 2024 - Over the previous 30Y
Best Rolling Return (%) - Annualized					26.33	16.88	13.98	9.07	7.75	6.49
Worst Rolling Return (%) - Annualized					-17.65	-2.88	-0.07	2.36	4.95	6.49
Positive Periods (%)					85.3	95.0	99.6	100.0	100.0	100.0
Best Rolling Return (%) - Annualized					25.26	14.70	12.08	7.14	5.76	4.35
Worst Rolling Return (%) - Annualized					-25.27	-6.63	-2.16	0.25	2.76	4.35
Positive Periods (%)					78.2	82.7	93.0	100.0	100.0	100.0
95% VaR - Value at Risk (%) - Cumulative		2.70	3.99	4.69	9.18	0.32	0.00	0.00	0.00
95% CVaR - Conditional Value at Risk (%)		3.52	5.41	6.70	12.94	2.68	0.00	0.00	0.00
99% VaR - Value at Risk (%) - Cumulative		4.05	6.33	7.99	16.24	4.31	0.00	0.00	0.00
99% CVaR - Conditional Value at Risk (%)		4.91	7.81	10.09	17.49	7.02	0.00	0.00	0.00
Short term VaRs: analytical \| 1+ year VaRs: historical data
Safe Withdrawal Rate (%)					83.76	27.34	19.44	10.34	6.27	6.89
Perpetual Withdrawal Rate (%)					---	---	---	0.27	2.99	4.96
% based on initial capital, inflation-adj. monthly withdrawals afterwards \| Credits: BestRetirementPortfolio.com
··· All available data (Jan 1950 - Aug 2024)
Best Rolling Return (%) - Annualized					38.78	20.28	16.78	13.55	11.89	9.63
Worst Rolling Return (%) - Annualized					-17.65	-3.07	-0.07	2.36	4.60	5.92
Positive Periods (%)					84.1	96.2	99.8	100.0	100.0	100.0
Best Rolling Return (%) - Annualized					35.23	18.35	15.04	10.57	9.04	7.10
Worst Rolling Return (%) - Annualized					-25.27	-8.97	-3.24	-2.07	0.52	2.99
Positive Periods (%)					75.5	84.7	87.6	92.9	100.0	100.0
95% VaR - Value at Risk (%) - Cumulative		2.80	4.03	4.57	5.38	0.00	0.00	0.00	0.00	0.00
95% CVaR - Conditional Value at Risk (%)		3.67	5.53	6.69	10.15	2.04	0.00	0.00	0.00	0.00
99% VaR - Value at Risk (%) - Cumulative		4.22	6.50	8.06	13.08	4.30	0.00	0.00	0.00	0.00
99% CVaR - Conditional Value at Risk (%)		5.13	8.07	10.28	15.69	6.29	0.00	0.00	0.00	0.00
Short term VaRs: analytical \| 1+ year VaRs: historical data
Safe Withdrawal Rate (%)					83.76	27.34	17.46	8.79	5.06	4.19
Perpetual Withdrawal Rate (%)					---	---	---	---	0.59	2.74
% based on initial capital, inflation-adj. monthly withdrawals afterwards \| Credits: BestRetirementPortfolio.com

Terms and Definitions

Annualized Portfolio Return: it's the annualized geometric mean return of the portfolio.
Deepest/Longest Drawdown: a drawdown refers to the decline in value from a relative peak value to a relative trough. The deepest (or maximum) drawdown is the maximum observed loss from a peak to a trough of a portfolio before a new peak is attained. The longest drawdown is the period observed from a peak to the subsequent peak with the greatest duration.
Longest negative period: it's the maximum period for which an overall negative return has been observed.
Standard Deviation: it's a measure of the dispersion of returns around the mean.
Sharpe Ratio: it's a measure of risk-adjusted performance of the portfolio. It's calculated by dividing the excess return of the portfolio over the risk-free rate by the portfolio standard deviation. The risk-free rate here considered is the 1-3 Mth T-Bill return.
Sortino Ratio: another measure of risk-adjusted performance of the portfolio. It's a modification of the Sharpe Ratio (same formula but the denominator is the portfolio downside standard deviation).
Ulcer Index: it's a measure of downside risk that quantifies the depth and duration of drawdowns in an investment portfolio.
Best/Worst 10Y returns: the best and the worst 10-year return over a time frame.
Rolling Returns: N-year returns over a time frame, calculated over all the available data source (best, worst, % of positive returns). Each rolling period, longer than the longest negative period, yielded a non-negative minimum return.
Value at Risk (VaR): it's an evaluation of a cumulative worst-case loss (in absolute value), associated with a probability (95%-99%) and a time horizon. For short term, it's calculated based on the expected return and standard deviation, assuming a normal distribution of monthly returns. For long term is retrieved by the historical rolling return data.
Conditional Value at Risk (CVaR): it represents the average expected loss if that worst-case threshold (95%-99%) is ever crossed.
Safe Withdrawal Rate (SWR): it's the percentage of the initial portfolio balance that can be withdrawn at the beginning of each month with inflation adjustment, without the portfolio running out of money in any case (money amount withdrawal).
For instance: Your initial invested capital is 100.000$; withdrawal rate (annualized) is 4%. This means that, in the first month, you will withdraw 100.000 * 4% * 1/12 = 333.33$. The second month, you’ll withdraw 333.33$ plus the inflation monthly rate. You’ll continue adjusting your withdraw monthly for inflation.
Perpetual Withdrawal Rate (PWR): it's the percentage of the initial portfolio balance that can be withdrawn at the beginning of each month with inflation adjustment, preserving the original invested capital, adjusted for inflation too.

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Portfolio Components Correlation

Correlation measures to what degree the returns of two assets move in relation to each other. It is a statistical measure that describes the extent to which the returns of one asset are related to the returns of another asset.

COMPONENTS MONTHLY CORRELATIONS

Monthly correlations as of 31 August 2024

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Terms and Definitions

Correlation values range between -1 and +1

A correlation of +1 indicates that the returns of the two assets move in perfect synchrony; when one asset's returns go up, the other asset's returns also go up by the same percentage, and vice versa. This perfect positive correlation implies that the assets perform similarly in different market conditions.
A correlation of -1 indicates a perfect inverse relationship between the returns of the two assets. When one asset's returns go up, the other asset's returns go down by the same percentage. This perfect negative correlation suggests that the assets move in opposite directions, providing a diversification benefit by reducing overall portfolio risk.
A correlation of 0 means that there is no linear relationship between the returns of the two assets. The returns of one asset do not predict the returns of the other.

Learn about historical correlations here: see how the main asset classes relate to each other.

Drawdowns

A drawdown refers to the decline in value from a relative peak value to a relative trough. A maximum drawdown is the maximum observed loss from a peak to a trough of a portfolio before a new peak is attained.

STOCKS/BONDS 40/60 TO EUR HEDGED PORTFOLIO

Drawdown periods

Drawdown periods - Inflation Adjusted

Time Period: 1 September 1994 - 31 August 2024 (30 Years)

Time Period: 1 January 1950 - 31 August 2024 (~75 years)

Inflation Adjusted:

Chart Table Range

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Rolling Returns

For a detailed rolling return analysis, click here
Stocks/Bonds 40/60 To EUR Hedged Portfolio: Rolling Returns

A rolling return is a measure of investment performance that calculates the return of an investment over a set period of time, with the starting date rolling forward. This approach can provide a more accurate representation of the investment's historical performance and helps investors to evaluate the investment's consistency over time.

STOCKS/BONDS 40/60 TO EUR HEDGED PORTFOLIO

Annualized Rolling Returns

Annualized Rolling Returns - Inflation Adjusted

Time Period: 1 September 1994 - 31 August 2024 (30 Years)

Time Period: 1 January 1950 - 31 August 2024 (~75 years)

Inflation Adjusted:

Return Chart Capital Chart Table

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Seasonality

In which months is it better to invest in Stocks/Bonds 40/60 To EUR Hedged Portfolio?

Both the Average Return and the Gain Frequency (Win %) are useful to get an idea of what happened in the past. They are retrieved considering the time period from January 1950 to August 2024.

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For further information about the seasonality, check the Asset Class Seasonality page.

Monthly Returns

This section provides a visual/tabular representation of the performance variability in the Stocks/Bonds 40/60 To EUR Hedged Portfolio over time. It illustrates the distribution of monthly returns, showcasing the range and frequency of positive and negative returns.

STOCKS/BONDS 40/60 TO EUR HEDGED PORTFOLIO

Monthly Returns Distribution

Time Period: 1 September 1994 - 31 August 2024 (30 Years)

Time Period: 1 January 1950 - 31 August 2024 (~75 years)

244 Positive Months (68%) - 116 Negative Months (32%)

586 Positive Months (65%) - 310 Negative Months (35%)

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Methodology

Returns, up to February 2024, have been derived using the historical series of equivalent ETFs / Assets, instead of the actual ETFs of the portfolio.
You can find additional information on extended Data Sources here.

In particular, the series derived from equivalent datasets are:

Xtrackers MSCI USA EUR Hedged (XD9E.DE), up to April 2018
iShares US Aggregate Bond EUR Hedged (CEBW.DE), up to February 2024

Portfolio efficiency

The following portfolios granted a higher return over 30 Years and a less severe drawdown at the same time.

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In the following table, you can compare the current portfolio with a list of famous portfolios. Metrics are calculated over the last 30 Years.

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The following portfolios share asset allocation strategy and/or similar asset weights.

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