HomePortfolios60/40 Portfolio

60/40 Portfolio

A balanced 60/40 strategy combining US equity growth through the Vanguard S&P 500 UCITS ETF with stability from EUR-hedged global government bonds, designed for European passive investors seeking steady long-term returns with moderate risk.

Optimize FIRE Projection
Annual Rebalancing
EUR
Moderate Risk
16.3yr backtest

Performance Summary

Total Return+276.06%
Annualized Return+8.47%
Volatility+10.19%
Sharpe Ratio0.64
Max Drawdown+20.72%

Holdings

Asset Allocation

Asset Class

Equity 60.0%Bonds 40.0%
Holdings Details
Discover a diversified 60/40 ETF portfolio for European investors blending S&P 500 growth with EUR-hedged bonds for steady long-term returns and balanced risk
AssetTypeAllocationTER
SXR8.XETRA
iShares Core S&P 500 UCITS ETF USD (Acc)IE00B5BMR087
ETF
60.0%0.07%
DBZB.XETRA
Xtrackers II Global Government Bond UCITS ETF 1C EUR HedgedLU0378818131
ETF
40.0%0.25%
Total100.0%0.14%

Performance

Portfolio Value Over Time
Starting with 10,000 investment → now worth €37,606.06
Histogram of Monthly Returns
The portfolio had a positive return during 125 of the 197 months (63%)
Monthly Returns Heatmap
Best month: +7.6% • Worst month: -12.7% • Best year: 2021 (+23.3%) • Worst year: 2022 (-14.6%)
YearJanFebMarAprMayJunJulAugSepOctNovDecTotal
2026-0.3%+0.4%-3.2%+5.5%+4.1%+0.7%-1.4%+1.4%-0.2%---+7.0%
2025+2.5%-1.8%-5.7%-2.6%+3.4%+1.1%+3.3%-0.5%+1.9%+3.1%-0.3%-0.5%+3.5%
2024+2.2%+2.3%+2.5%-2.1%+0.8%+4.7%+0.4%-0.2%+1.4%+1.1%+5.8%-1.0%+19.2%
2023+3.2%-0.2%+1.1%+0.2%+2.1%+2.4%+1.2%+0.1%-2.1%-2.2%+4.7%+3.6%+14.8%
2022-4.2%-1.6%+2.6%-3.0%-2.8%-4.2%+7.6%-2.1%-4.7%+2.7%-0.7%-4.7%-14.6%
2021+0.3%+1.1%+4.3%+1.6%-0.7%+3.8%+2.0%+2.3%-1.8%+3.8%+2.0%+2.5%+23.3%
2020+1.4%-4.9%-5.4%+6.4%+1.0%+0.7%+0.6%+3.4%-0.8%-1.5%+4.6%+0.7%+5.7%
2019+4.9%+2.5%+2.4%+2.3%-2.7%+2.9%+3.5%-0.0%+1.5%-0.6%+3.1%+0.8%+22.5%
2018+0.4%-0.7%-2.4%+1.8%+3.1%+0.6%+1.4%+2.5%+0.2%-2.8%+0.7%-5.4%-0.8%
2017-1.4%+4.1%-0.4%-0.5%-1.0%-0.6%-0.7%-0.1%+1.3%+2.4%+0.4%+0.8%+4.0%
2016-3.2%+1.6%+0.6%-0.7%+3.2%+1.0%+2.2%-0.2%-0.4%-0.1%+3.9%+1.7%+9.8%
2015+3.3%+3.3%+2.1%-2.2%+1.4%-2.6%+2.5%-4.9%-1.4%+6.4%+2.6%-2.4%+7.9%
2014-0.1%+1.6%+0.3%+0.2%+3.0%+1.2%+1.1%+3.6%+2.0%+1.7%+2.8%+2.2%+21.2%
2013+1.8%+3.6%+3.5%-0.2%+2.9%-2.1%+2.0%-2.1%+0.7%+3.1%+1.8%+0.2%+16.1%
2012+1.7%+1.6%+2.0%-0.0%+0.8%+0.8%+3.6%-0.1%+0.0%-1.8%+0.5%-1.0%+8.2%
2011-0.8%+1.6%-1.6%-0.6%+1.3%-1.4%+0.1%-2.7%+1.4%+3.0%+1.0%+4.2%+5.4%
2010----+0.2%-1.5%+2.2%-1.5%+5.5%-0.9%-12.7%+2.3%-7.2%
> +2%
0% to +2%
-2% to 0%
< -2%
Drawdown Analysis
Maximum drawdown: +20.72% • The longest drawdown period lasted for 2 years and was between December 2021 and January 2024. It reached a trough of -14.9%.
When could this portfolio get you to financial independence?

60/40 Portfolio returned +8.47% a year over the 16 years above. Run those same monthly returns forward through 10,000 simulated paths, with your own savings and target retirement age, to see when they could reach your FIRE number.

Detailed Metrics

Returns
Total Return
+276.06%
Annualized Return
+8.47%
Avg Monthly Return
+0.71%
Risk
Volatility (Annual)
+10.19%
Max Drawdown
+20.72%
Positive Months
63%
Average Drawdown
-4.1%
Risk-Adjusted
Sharpe Ratio
0.64
Risk-free rate: 2.0%
Sortino Ratio
0.57
Downside risk adjusted
Return/Volatility
0.83
Calmar Ratio
0.41
Return/Max Drawdown
Ulcer Index
5.51
Drawdown depth & duration
Martin Ratio
0.01
Return/Ulcer Index
Backtest Configuration
Initial Investment
10,000
Final Value
37,606.06
Backtest Period
2010-05-27 to 2026-09-11
16.3 years
Rebalancing
annual
Base Currency
EUR