The minimal viable alternative to the 60/40 portfolio [Members]
For MAVENS and MOGULS by The Accumulator
on July 7, 2026
We’re on a quest to find the minimum viable alternative to the 60/40 portfolio. (That is, a conventional 60% equities/40% nominal bonds or cash asset allocation.)
What’s wrong with the standard 60/40 portfolio as featured in all your fave multi-asset fund ranges?
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A very interesting read thanks. I played around with a similar approach in portfolio charts recently and found unhedged long duration US dollar government treasuries were a better diversifier than UK gilts. I surmise this is due to dollar strength / flight to safety of treasuries during recessionary periods. Could this also play into part of commodities and gold strength in that they are priced in USD?
What the world needs is either a brokerage platform that can automatically rebalance based on a punters allocation/construction, or less flexibly, LS equivalent products for PP type portfolios. A 100% bond LS product with no home bias would also be useful, something with the flavour of VGGS, but with linkers in it. I think you can get euro LS ETFs that have no home bias right? But they have at least a 20% equity component? In practice I never get round to rebalancing, even though I know I should do. It’s not really a job that is suited to manual intervention, much better fully automated. That’s why, for all their other shortcomings, LS products are so good..