ATLASWhat is a 60/40 portfolio? An example with ETFs
60/40 portfolio: 60% stocks, 40% bonds. Using VTI and BND, this mix returned +15.0% per year over the last 3 years and +6.6% per year over 5 years; its largest drop in the last 5 years was -21.2%.
Updated November 2, 2026 · Source: ATLAS daily price data and fund distributions
The 60/40 portfolio is the classic balanced allocation: about 60% in stocks for growth and 40% in bonds for income and a cushion when stocks fall. It is widely used as a benchmark in investing books and by balanced funds. This example uses two broad ETFs, one for the whole US stock market and one for the whole US bond market.
Allocation of this example
How this mix behaved in the past
- Last 1 year+6.9%Oct 2025 – Nov 2026
- Last 3 years, per year+15.0%+52.1% · Nov 2023 – Nov 2026
- Last 5 years, per year+6.6%+37.4% · Nov 2021 – Nov 2026
- Volatility, last 3 years9.8%Nov 2023 – Nov 2026
- Largest drop, last 5 years-21.2%high Dec 2021, low Oct 2022
- Largest drop since Apr 2007-35.0%high Oct 2007, low Mar 2009
Total return in USD, distributions reinvested. Volatility is the annualised standard deviation of daily returns. These are past results, not forecasts.
What 10,000 would have become over the last 5 years
Return by calendar year
| Year | Return |
|---|---|
| 2026 (to date) | +6.6% |
| 2025 | +13.5% |
| 2024 | +14.5% |
| 2023 | +17.8% |
| 2022 | -16.5% |
| 2021 | +14.0% |
| 2020 | +17.0% |
| 2019 | +21.8% |
The bond half is not risk-free. Bond funds lose value when interest rates rise, and 2022 showed that stocks and bonds can fall together. Someone who withdraws money every year is also exposed to the order of returns: a bad start hurts more when money is leaving the portfolio.
Method and data
Period: April 10, 2007 to November 2, 2026 (the longest period in which every ETF in the mix has a price). Returns are total returns in US dollars: daily closing prices stored by ATLAS plus fund distributions reinvested on the ex-dividend date. The mix is rebalanced every day to the weights shown. Fund expense ratios are already included in prices; taxes, trading costs, advisory fees and currency effects for non-US-dollar investors are not. Distributions come from the data provider and were last refreshed November 3, 2026.
Other example portfolios
- 3-fund portfolio40% US stocks, 20% international stocks, 40% bonds · 5 years, per year: +6.1%
- All-weather-style portfolio30% stocks, 55% Treasuries, 7.5% gold, 7.5% commodities · 5 years, per year: +2.4%
- Dividend income ETF portfolio60% dividend stock ETFs, 10% real estate, 30% bonds · 5 years, per year: +6.8%
- 50/50 portfolio50% stocks, 35% bonds, 15% inflation-protected bonds · 5 years, per year: +5.1%
- 30/70 conservative portfolio30% stocks, 50% bonds, 20% inflation-protected bonds · 5 years, per year: +3.1%
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Frequently asked questions
What does 60/40 mean?
60% of the money is in stocks and 40% in bonds. It is a way of describing asset allocation, not a specific product.
Is a 60/40 portfolio good for retirement?
It depends on your income needs, time horizon, other income and how much loss you can tolerate. Many retirees hold less in stocks, others more. This page only shows how the mix behaved in the past.
Which ETFs can be used for a 60/40 portfolio?
The example uses VTI for US stocks and BND for US bonds. Other broad stock and bond funds can play the same roles; the ATLAS page of each fund shows fees, holdings and yield.
Why did the 60/40 portfolio fall in 2022?
Stocks and bonds fell in the same year as interest rates rose quickly. The calendar-year table on this page shows the result for the mix.
Educational example only. ATLAS does not give personal investment advice. Disclaimer