Balanced vs all equity
60/40 vs 100% S&P 500
Compare a balanced 60/40 portfolio against an all-equity S&P 500 portfolio across the same pre-tax historical window.
Modeled result
From 2005 to 2025, SPY finished ahead of SPY 60% / AGG 40% before tax.
Historical model
Growth of $10,000
2005-01-03 to 2025-12-31
Chart window
All history
Chart window
SPY 60% / AGG 40%
Classic 60/40
- Ending value
- $49,284
- CAGR
- 7.89%
- Max drawdown
- -35.56%
SPY
S&P 500 only
- Ending value
- $83,565
- CAGR
- 10.64%
- Max drawdown
- -55.19%
Pre-tax results only. Bond-interest taxation and taxable gains from rebalancing are not included in this comparison.
Detailed metrics
Assumptions
$10,000 lump sum; distributions reinvested; monthly rebalancing; 2005-01-03 to 2025-12-31.
FAQ
Does adding bonds always reduce return?
Not necessarily. Bonds lower volatility and drawdowns in most windows, and the return difference depends on the period. In some windows the balanced mix trails all-equity; in others its smaller drawdowns change the outcome. The backtest shows the tradeoff for your inputs.
How do taxes affect a 60/40 portfolio?
This page does not estimate them. In a taxable account the bond sleeve can generate ordinary-income interest, while rebalancing can realize gains. Model those effects in a separate tax-aware run.