60/40 Portfolio: 10-Year Data on How Rebalancing Compounds Returns | 6
2020–2026 performance: 60/40 blended portfolio delivered approximately 12% compound annual growth rate (CAGR), with rebalancing includedMonthly $1,000 investment over 10 years simulated: $120,000 invested → approximately $240,000–$260,000 accumulatedBond ETF expense ratio impact: 0.03% versus 0.80% creates a 15–20% wealth divergence over 20 years2022 rate shock: Quarterly rebalancing cushioned equity losses by 25–30% compared to unbalanced allocationsCurrent bond yields (3–4%) appear elevated relative to historical median (~2%), raising questions about duration risk ahead The Real 10-Year Trajectory of 60/40 Monthly $30K investment 20-year compound growth simulation Monthly $1,000 contribution over 20 years: compound growth simulation The 60% equities, 40% fixed income allocation has anchored institutional and retail portfolios since the 1990s....