PORTFOLIO COMPARISON / ONE VARIABLE

Graham-Inspired 50/50 Portfolio Backtest

Backtest a fixed 50/50 US equity and aggregate bond ETF proxy inspired by Benjamin Graham’s defensive allocation range.

Benjamin Graham-inspiredClassic defensive starting point50% broad equities / 50% bondsHistorical result available

HISTORICAL BACKTEST RESULT

60% SPY / 40% AGG vs 50% SPY / 50% AGG

60% SPY / 40% AGG 50% SPY / 50% AGG
2016-08-23 → 2026-07-31 · 2492 common sessions
60% SPY / 40% AGG$22,7528.6% annualized · -21.3% max drawdown
50% SPY / 50% AGG$19,8357.1% annualized · -20.6% max drawdown

Historical calculation from cached Marketstack EOD data. Annual rebalancing, $10,000 initial value, nominal USD before fees and taxes. The disclosed portfolio definitions—not an AI model—produce the result.

RUN THIS PORTFOLIO

Change the rule, then compare the new result.

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WHAT TO COMPARE

Read the trade-off as a system.

  1. 01Ending value
  2. 02Maximum drawdown
  3. 03Volatility
  4. 04Stock–bond trade-off

WHEN TO LOOK

Locate where the difference appeared.

First shared ETF observation onwardEquity-led periodsBond-led periods2022 rate shock

A useful comparison shows whether an advantage was broad or created by one unusually favorable period. Review the portfolio backtest methodology to understand how the same rules are applied across a shared data window.

PORTFOLIO RULE / DISCLOSED IMPLEMENTATION

Fixed 50/50 ETF illustration

Graham described a defensive allocation range rather than this fixed two-ETF rule. This page is therefore labelled Graham-inspired.

SPYSPDR S&P 500 ETF TrustSPDR S&P 500 ETF TrustUS large-cap equity ETFTracks the S&P 500, a widely used reference for large US companies.50%S&P 500 equity proxy
AGGiShares Core U.S. Aggregate Bond ETFiShares Core U.S. Aggregate Bond ETFUS bond ETFTracks a broad investment-grade US bond index.50%US aggregate bond proxy

REBALANCINGAnnual rebalancing to 50% equities and 50% bonds.

DATA WINDOWThe calculation uses the common EOD history of SPY and AGG; it should not be extended with a different index without disclosure.

STRATEGY CONTEXT

What this portfolio strategy means.

A short definition, the reason investors return to it, and the historical context behind the name. It is context for a backtest—not an investment recommendation.

What it is

This Graham-inspired illustration fixes a modern 50/50 mix of an S&P 500 ETF and an aggregate bond ETF, then tests explicit allocation changes around it. It is intentionally not called ‘Benjamin Graham’s portfolio’: Graham described a defensive investor’s stock-and-bond policy range, whereas this page uses current liquid funds and a mechanical annual rebalancing rule.

Why investors use it

A balanced stock-and-bond split is attractive to investors who want equity participation without making the whole account depend on equity outcomes. The 50/50 reference makes the trade-off easy to inspect: moving more toward stocks may change the return path and drawdown, while moving toward bonds changes the sensitivity to rates and the role of income. The page tests those effects rather than assuming them.

Historical context

In *The Intelligent Investor*, Benjamin Graham described 50/50 as a standard defensive starting point and discussed a stock range between 25% and 75%, with adjustments subject to the investor’s judgment. That framework predates index ETFs and today’s aggregate bond funds by decades. The historical connection is therefore philosophical, while the calculation is a clearly disclosed modern ETF proxy.