Direct Answer
The classic 60/40 portfolio (60% S&P 500 / 40% bonds) has delivered average annual returns of approximately 8-9% since 1928, with significantly lower volatility than all-equity portfolios. The worst year in modern history was 2022 (−16.1%), when rising interest rates caused both stocks and bonds to fall simultaneously. Over any 10-year rolling period since 1928, the 60/40 portfolio has been positive approximately 95% of the time.
60/40 Portfolio Annual Returns History
60/40 Portfolio Annual Returns (60% S&P 500 / 40% Bloomberg Agg)
| Year | 60/40 Return | S&P 500 | Bloomberg Agg |
|---|---|---|---|
| 2000 | −3.6% | −9.1% | +11.6% |
| 2001 | −4.2% | −11.9% | +8.4% |
| 2002 | −9.6% | −22.1% | +10.3% |
| 2003 | +19.9% | +28.7% | +4.1% |
| 2004 | +8.1% | +10.9% | +4.3% |
| 2005 | +4.3% | +4.9% | +2.4% |
| 2006 | +11.0% | +15.8% | +4.3% |
| 2007 | +6.6% | +5.5% | +7.0% |
| 2008 | −22.1% | −37.0% | +5.7% |
| 2009 | +17.8% | +26.5% | +5.9% |
| 2010 | +11.6% | +15.1% | +6.5% |
| 2011 | +4.4% | +2.1% | +7.8% |
| 2012 | +11.4% | +16.0% | +4.2% |
| 2013 | +16.5% | +32.4% | −2.0% |
| 2014 | +10.0% | +13.7% | +6.0% |
| 2015 | +1.4% | +1.4% | +0.5% |
| 2016 | +8.2% | +12.0% | +2.6% |
| 2017 | +13.5% | +21.8% | +3.5% |
| 2018 | −2.3% | −4.4% | +0.0% |
| 2019 | +22.1% | +31.5% | +8.7% |
| 2020 | +14.0% | +18.4% | +7.5% |
| 2021 | +16.2% | +28.7% | −1.5% |
| 2022 | −16.1% | −18.1% | −13.0% |
| 2023 | +17.7% | +26.3% | +5.5% |
| 2024 est. | +17.5% | +25.0% est. | +4.5% est. |
Source: NYU Stern: Historical Returns on Stocks, Bonds and Bills. Data through 2024; last checked September 2026.
Frequently asked questions
Is 60/40 the right allocation for everyone?
The 60/40 portfolio is a conventional "balanced" allocation that works well as a starting point for moderate-risk investors with 10-20 year time horizons, but is not universally appropriate. Those who may benefit from less than 60% equity: investors within 5-10 years of retirement (less time to recover from stock crashes), investors who panic and sell during downturns (a 100% equity portfolio they abandon is worse than a 60/40 they hold), risk-averse investors with shorter time horizons. Those who may benefit from more than 60% equity: investors with very long time horizons (20-40 years), high tolerance for interim volatility, or inflation-hedging goals. Age-based rules (e.g., "100 minus your age" in equities) are heuristics, not prescriptions -- individual circumstances matter more than rules.
How do you rebalance a 60/40 portfolio?
Rebalancing a 60/40 portfolio means periodically buying the underperforming asset class and selling the outperforming one to restore the target allocation. If stocks rise to 70% of the portfolio, sell enough stocks to buy bonds back to 40%. Rebalancing frequency: calendar-based (annually or semi-annually), threshold-based (when allocation drifts more than 5% from target), or combination. Academic research suggests threshold-based rebalancing produces slightly better risk-adjusted returns than calendar rebalancing. Tax efficiency: in taxable accounts, rebalance primarily by directing new contributions to the underweighted asset; avoid triggering capital gains by selling appreciated positions unless the drift is large.
What are alternatives to the traditional 60/40?
Common 60/40 modifications: (1) "All Weather" / risk parity (equal risk from stocks, bonds, gold, commodities -- popularized by Ray Dalio); (2) 60/20/20 (adding 20% alternatives like REITs, commodities, or hedge funds); (3) target-date funds (start aggressive, glide toward bonds as retirement approaches); (4) dividend-focused (high-dividend stocks instead of growth stocks in the equity portion); (5) factor-tilted (adding small-cap value, momentum, or quality tilts to the equity portion). The core insight of 60/40 -- combining growth assets (stocks) with defensive assets (bonds) -- is sound; the specific 60/40 ratio and traditional U.S. stock/U.S. bond composition can be adjusted for individual circumstances and changing market conditions.
Cite This Page
If you reference this table in your own work, use the following citation format and add the date you accessed it:
Swoopr Editorial Team. (2026). 60/40 Portfolio Annual Returns History. Swoopr Investment. https://www.getswoopr.com/tables/returns/60-40-portfolio-annual-returns/
Check the figures against the primary sources listed under References before you rely on or republish them; the series they come from are revised.