Ahead of SPY at 9 of 60 month-ends.
Same starting value · dividends reinvested
Selected allocation CAGR +2.0%
SPY CAGR +12.0%
Shaded: major market crises Bear Market (2022)
Vanguard LifeStrategy 20/80
4 ETFs · Fixed income · U.S. total market · International equity
Where this allocation comes from
Vanguard LifeStrategy 20/80 Fund (VASIX) · Fund target allocation (named LifeStrategy Income before 2026)
Also known as: Vanguard LifeStrategy 20/80 Fund · Vanguard LifeStrategy Income Fund · VASIX
The target allocation of the Vanguard LifeStrategy 20/80 Fund: four index funds held at 20% stocks and 80% bonds.
| Asset in the source | Weight | Lifolio ETF |
|---|---|---|
| US total stock market | 12% | VTI |
| International stocks (ex-US) | 8% | VXUS |
| US aggregate bonds | 56% | BND |
| International bonds (USD-hedged) | 24% | BNDX |
Lifolio reproduces the fund's target allocation with ETFs tracking the same indexes as its four underlying funds (VTI, VXUS, BND, BNDX). Not affiliated with or endorsed by Vanguard, and not the fund's own returns. BNDX listed in June 2013, so history starts then.
Source: workplace.vanguard.com sec.gov
Lifolio is not affiliated with or endorsed by the people or organizations cited. Figures are historical simulations under Lifolio's standard conditions. Sources checked 2026-11-01.
- $10,000 lump sum
- Monthly rebalancing
- Dividends reinvested
- Benchmark: SPY
- No taxes or fees
- $10,000 became
- $11,041 SPY alone: $17,597 −$6,556 vs SPY
- Annual return
- +2.0% SPY +12.0% -10.0pp vs SPY
- Max drawdown (month-end)
- -16.3% SPY -23.9% +7.6pp vs SPY Regained 24 mo after the low
- Below the high at period end
- -1.1% 2026-10
Key points for this allocation
- By asset class: bonds 80% · equities 20%.
- Its dividend yield over the last 12 months was 3.7%; the results reinvest dividends.
- During the Bear Market (2022) it returned -14.3%, while SPY returned -19.7%.
Overview ⌄
Compare allocations
The same holdings at different splits. Pick a row to update everything below.
| Allocation | Details | |||
|---|---|---|---|---|
| +2.0% | -16.3% | -0.23 | ||
| +6.0% | -21.0% | 0.23 | ||
| +8.0% | -23.2% | 0.36 |
- Annual return
- +2.0%
- Max drawdown (month-end)
- -16.3%
- Sharpe
- -0.23
- Annual return
- +6.0%
- Max drawdown (month-end)
- -21.0%
- Sharpe
- 0.23
- Annual return
- +8.0%
- Max drawdown (month-end)
- -23.2%
- Sharpe
- 0.36
Exploration on Lifolio; these counts do not establish investment performance or preference.
Growth
Starting from $10,000, shown with SPY over the same window. Shaded bands mark major market crises.
Declines and recoveries
Month-end decline from the previous high. Closer to 0% means a smaller fall.
The deepest fall was -16.3%, regained 24 months after the low.
Values below 0% are loss periods
Calendar-year returns
Only years with all twelve months. The table also lists the deepest fall within each year (the in-year low).
Of 4 complete years: 1 with a loss, 1 ahead of SPY.
Show as a table
| Year | Selected allocation | SPY | In-year low |
|---|---|---|---|
| 2025 | +9.1% | +17.7% | -0.9% |
| 2024 | +4.8% | +24.9% | -2.4% |
| 2023 | +9.6% | +26.2% | -5.0% |
| 2022 | -13.9% | -18.2% | -16.3% |
Depending on when you bought
Every month in the window taken as a start, held one, three or five years.
Observed windows overlap and are not independent samples. These shares are not probabilities of future gains.
Holdings
Holdings of the selected split and what each one is.
- BNDVanguard Total Bond Market Index Fund ETF Shares 56%
An ETF investing across the U.S. bond market.
- BNDXVanguard Total International Bond Index Fund ETF Shares 24%
- VTIVanguard Morningstar Total Stock Market ETF 12%
An ETF investing across the U.S. equity market.
- VXUSVanguard Total International Stock Index Fund ETF Shares 8%
An ETF investing in equity markets outside the U.S.
Questions & methodology
Review calculation settings and how to interpret the selected allocation.
What does the Vanguard LifeStrategy 20/80 portfolio hold?
Vanguard Total Bond Market Index Fund ETF Shares (BND): An ETF investing across the U.S. bond market. Vanguard Total International Bond Index Fund ETF Shares (BNDX) Vanguard Morningstar Total Stock Market ETF (VTI): An ETF investing across the U.S. equity market. Vanguard Total International Stock Index Fund ETF Shares (VXUS): An ETF investing in equity markets outside the U.S.
What were the return and risk of the Vanguard LifeStrategy 20/80 portfolio?
From 2021-10-29 to 2026-10-30, the annualized return was +2.0%, maximum drawdown was -16.3%, and Sharpe ratio was -0.23.
How did it compare with holding SPY alone?
From 2021-10-29 to 2026-10-30, the annual return was +2.0% for this split and +12.0% for SPY. Over the same window the maximum drawdown was -16.3% for this split and -23.9% for SPY.
How far did the Vanguard LifeStrategy 20/80 portfolio fall, and how long did it take to get back?
Over the selected 5 years, the largest month-end decline was -16.3%, from a high in 2021-12 to a low in 2022-09. It regained the old high 24 months after the low.
How many losing years did the Vanguard LifeStrategy 20/80 portfolio have?
1 of 4 complete calendar years ended with a loss. The worst was 2022 (-13.9%).
How did other popular splits of the Vanguard LifeStrategy 20/80 portfolio do?
BND 56% · BNDX 24% · VTI 12% · VXUS 8%: annualized return +2.0%, maximum drawdown -16.3%. BND 28% · BNDX 12% · VTI 36% · VXUS 24%: annualized return +6.0%, maximum drawdown -21.0%. BND 14% · BNDX 6% · VTI 48% · VXUS 32%: annualized return +8.0%, maximum drawdown -23.2%.
Are dividends, taxes and exchange rates included?
Dividends are reinvested and results are in USD. Taxes, currency moves against your home currency and trading fees are not included. These results use US-listed ETFs; Korea-listed ETFs such as KODEX and TIGER can be added in the backtest.
The server calculates portfolio examples and actual user allocations with the same period, starting balance and settings. Validated metrics and their supporting charts are shown together.
Price data through: 2026-10-30