Balanced vs all equity
Compare a balanced 60/40 portfolio against an all-equity S&P 500 portfolio, including rebalancing and tax considerations.
A 60/40 portfolio holds roughly 60% stocks and 40% bonds and rebalances between them. A 100% S&P 500 portfolio holds only large-cap US equity. The bond sleeve lowers volatility but changes the tax and return profile.
In a taxable account, the bond sleeve generates ordinary-income interest each year, and rebalancing between stocks and bonds can realize taxable gains. Run the backtest to compare risk, return, and turnover for your date range.
Historical results
Historical results for a $10,000 lump sum with dividends reinvested and monthly rebalancing, as of 2025-12-31. Past performance does not guarantee future results. Not investment advice.
Run it live with your own dates and tax profileDoes adding bonds always reduce return?
Not necessarily. Bonds usually lower volatility and drawdowns, 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?
In a taxable account the bond sleeve pays interest taxed as ordinary income each year, and rebalancing can realize taxable gains. Enabling the tax-aware settings surfaces that drag next to the pre-tax return.
Run this comparison with your own dates, account type, and tax profile.
Open the prefilled backtest