Classic 60/40
Classic 60/40 is a fixed-allocation portfolio reviewed on a annual cadence. Its hypothetical backtest runs through 2026-07-30. BestFolio supplies the public rule or approach, current signal and allocation, and interactive backtest views on this page. No publication or construction date is recorded, so no observed-versus-simulated boundary is claimed; all displayed returns are hypothetical. Users review each scheduled signal and place any resulting trades in their own brokerage. BestFolio does not execute trades or provide personalized investment advice.
- Cadence
- Annual
- Backtest data through
- 2026-07-30
- History boundary
- No publication or construction date is recorded, so no observed-versus-simulated boundary is claimed; all displayed returns are hypothetical.
- Rule / approach
- 1. Allocate 60% to SPY (S&P 500, US large-cap equities) 2. Allocate 40% to AGG (Bloomberg US Aggregate Bond Index) 3. Rebalance annually or when drift exceeds threshold
- BestFolio supplies
- the public rule or approach, current signal and allocation, and interactive backtest views on this page
- Customer action
- Review each scheduled signal and place any required trades in your own brokerage; BestFolio does not execute orders.
- Costs and exclusions
- net of a modeled one-way transaction cost (10 bps, scaled up to 3x under stress); taxes, fund-expense drift, or market impact are not modeled
- Freshness
- The latest available backtest ends 2026-07-30. A run timestamp is not exposed here, so no stronger freshness claim is made.
- Next expected action
- First trading day of 2027 (annual); scheduled 2027-01-04 at 09:30 ET. Review the published signal before placing any trade.
Based 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
Asset Universe
2 instruments this strategy can hold
Key Differentiators
Research Source
Based on research by Traditional
Strategy Info
- Type
- Fixed / Strategic
- Frequency
- annual
- Next Rebalance
- Jan 409:30 ET (158d)
- Variants
- 1
- Risk Category
- moderate
- Regime
- Static
- Signal Date
- 2026-07-29
- 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 2026-07-30 (103.5 years): 8.0% CAGR, 0.73 Sharpe, -65.8% max drawdown, 7.7% volatility.
- Type
- Fixed Allocation
- Author
- Traditional
- Rebalancing
- Annual
- Risk
- Moderate
- Period
- 1922-12-29 to 2026-07-30
- CAGR
- 8.0%
- Sharpe
- 0.73
- 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.
Classic 60/40: frequently asked questions
- What is Classic 60/40?
- The benchmark for balanced portfolios: 60% US stocks, 40% US bonds. Every other allocation is measured against this.
- Who created the Classic 60/40 strategy?
- Classic 60/40 was developed by Traditional.
- What is the historical return and maximum drawdown of Classic 60/40?
- Backtested from 1922-12-29 to 2026-07-30, Classic 60/40 returned 8.0% CAGR with a -65.8% maximum drawdown and a Sharpe ratio of 0.73. Past performance does not guarantee future results.
- How often is Classic 60/40 rebalanced?
- Classic 60/40 is rebalanced annual. BestFolio publishes the updated allocation signal each period.
- Is Classic 60/40 a fixed or tactical strategy?
- Classic 60/40 is a fixed-allocation (strategic) portfolio: it holds a set allocation and rebalances on schedule rather than rotating based on market signals.
Backtest Performance (1922-12-29 to 2026-07-30)
| Metric | Classic 60/40 |
|---|---|
| CAGR | 8.0% |
| Max Drawdown | -65.8% |
| Sharpe | 0.73 |
| Sortino | 0.96 |
| Volatility | 7.7% |
| Calmar | 0.12 |
| Total Return | 299803.6% |
| Backtest Period | 103.5 years |
Strategy Details
- Type
- Fixed / Strategic
- Rebalancing
- annual
- Risk Level
- moderate
- Variants
- 1
- Author
- Traditional
Asset Classes
- US Equity
- US Bonds
Track Classic 60/40 in Your Portfolio
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