Classic 60/40
StaticFreemoderateBased on research by Traditional
This is BestFolio's independent implementation. Not affiliated with or endorsed by the original author.
About this Strategy
The Classic 60/40 portfolio is the most widely referenced balanced allocation in finance, splitting 60% into US equities and 40% into US aggregate bonds. It has served as the default benchmark for balanced portfolios for decades. The logic is straightforward: equities provide long-term growth while bonds provide income and dampen volatility.
Strategy Rules
- 1Allocate 60% to SPY (S&P 500 — US large-cap equities)
- 2Allocate 40% to AGG (Bloomberg US Aggregate Bond Index)
- 3Rebalance annually or when drift exceeds threshold
Key Differentiators
Research Source
Based on research by Traditional
Strategy Info
- Type
- Fixed / Strategic
- Frequency
- annual
- Next Rebalance
- Jan 409:30 ET (227d)
- Variants
- 1
- Risk Category
- moderate
- Regime
- Static
- Signal Date
- 2026-05-21
- Tags
- static, benchmark
- Type
- Fixed/Strategic Asset Allocation
- Trading Frequency
- Annual or on-drift rebalancing
- Number Of Holdings
- 2 ETFs
- Equity Allocation
- 60%
- Bond Allocation
- 40%
- Risk Level
- Moderate
Asset Classes
Classic 60/40 at a glance
Classic 60/40 is a fixed-allocation portfolio by Traditional across US Equity, US Bonds, rebalanced annual. Backtested 1922-12-29 to 2026-05-20 (103.4 years): 8.0% CAGR, 1.03 Sharpe, -65.8% max drawdown, 7.7% volatility.
- Type
- Fixed Allocation
- Author
- Traditional
- Rebalancing
- Annual
- Risk
- Moderate
- Period
- 1922-12-29 to 2026-05-20
- CAGR
- 8.0%
- Sharpe
- 1.03
- Max Drawdown
- -65.8%
- Volatility
- 7.7%
Classic 60/40 — Fixed Allocation Portfolio
The Classic 60/40 portfolio is the most widely referenced balanced allocation in finance, splitting 60% into US equities and 40% into US aggregate bonds. It has served as the default benchmark for balanced portfolios for decades. The logic is straightforward: equities provide long-term growth while bonds provide income and dampen volatility.
Backtest Performance (1922-12-29 to 2026-05-20)
| Metric | Classic 60/40 |
|---|---|
| Compound Annual Growth Rate (CAGR) | 8.0% |
| Maximum Drawdown | -65.8% |
| Sharpe Ratio | 1.03 |
| Sortino Ratio | 1.15 |
| Annualized Volatility | 7.7% |
| Calmar Ratio | 0.12 |
| Total Return | 297044.3% |
| Backtest Period | 103.4 years |
Strategy Details
- Type
- Fixed / Strategic
- Rebalancing
- annual
- Risk Level
- moderate
- Variants
- 1
- Author
- Traditional
Asset Classes
- US Equity
- US Bonds
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