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.

ETFs

2.1%

Aggregate Yield

$122.5B

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%	$167.96	...	...	...	1.0%	$96.9B
BND	Vanguard Total Bond Market	40%	$72.23	...	...	...	3.4%	$160.9B

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: 1.0% AUM: $96.9B

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: 3.4% AUM: $160.9B

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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