Classic 60/40

Moderate Classic Allocation

The time-tested balanced portfolio. 60% equities for growth, 40% bonds for ballast. Simple, boring, and has outperformed most hedge funds over the past decade.

2
ETFs
2.1%
Aggregate Yield
$110.7B
Wtd Avg AUM

Holdings

Symbol Name Weight Price 1D 3M YTD Yield AUM
ITOT iShares Core S&P Total U.S. Stock Market ETF 60% $148.68 ... ... ... 1.1% $83.4B
BND Vanguard Total Bond Market 40% $73.64 ... ... ... 3.3% $151.6B

Investment Thesis

The 60/40 split is the foundation of modern portfolio theory. Equities provide long-term capital appreciation while bonds dampen volatility and provide income. During equity drawdowns, high-quality bonds typically appreciate, cushioning the blow. The simplicity is a feature: fewer moving parts means lower costs, less rebalancing, and fewer opportunities to make behavioral mistakes. Academic research consistently shows that this allocation captures roughly 90% of the return of a 100% equity portfolio with significantly less volatility. The 2022 drawdown — when both stocks and bonds fell simultaneously — was historically unusual and driven by the fastest rate-hiking cycle in decades, not a structural failure of the approach.

Portfolio Construction

ITOT iShares Core S&P Total U.S. Stock Market ETF
60%
Total US stock market exposure — over 3,500 stocks from mega-cap to small-cap, market-cap weighted. This is the growth engine of the portfolio, capturing the full breadth of American corporate earnings.
Yield: 1.1% AUM: $83.4B
BND Vanguard Total Bond Market
40%
Total US bond market — investment-grade government and corporate bonds across all maturities. Provides income, reduces portfolio volatility, and tends to rally during equity sell-offs.
Yield: 3.3% AUM: $151.6B

Key Considerations

  • Vulnerable in periods when stocks and bonds fall together (rising rates + recession fears)
  • May underperform in prolonged bull markets due to bond drag
  • US-only exposure misses international diversification benefits
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