**Edit: After discussing with the author on their assumptions.** I hope we can settle the claim once and for all. - S&P 500 = Adjusted Close with Yahoo Finance - 10-year Treasury = Yield to Maturity from macrotrends.net, which I confirmed it to be extremely similar to treasury.gov - Start Date = 2000-01-03 - End Date = 2021-12-01 - Lump Sump $100,000 with no additional funds - Reinvested dividend - "Continous Rebalancing" = Assume Daily Rebalancing - No Bid/Ask Spread (theoretically TLH has 0.05% spread, which does add up daily. - No Capital Gains or Divividend Tax - Price of Bonds Fund = 100/((1+YTM/100)^10) - A very smart Bonds Fund manager is able to maintain constant maturity (theoretically a 10-year Bonds becomes 9.997-year Bonds after 1 day. ) **Result: End-Value of 60/40 is worse than 100% S&P 500.** [![A][1]][1] [![B][2]][2] **Raw Data, Formula, and Excel files here:** https://file.io/XdWmt2HLxpOE ---- If you look at the definition of "60/40 stock/bond portfolio" at 24:14 of the video, it says: > 60/40 is 60% S&P 500 and 40% **10-year Treasury** This is the part where it is misleading. Treasury Bonds had a magnified great run in the past 20 years. The longer the duration of the Treasury, the higher return and lower volatility it brings. This 60/40 is different from the [Modern Portfolio Theory][3], where the "Market Portfolio" is 60% Total Stock Market and 40% Total Bonds Market (including Treasury, Corporate, Municipal, Junk, etc). So instead of 40% BND ETF that [Bogleheads][4] recommended, the **10-year Treasury** is simulated by IEF ETF and TLH ETF on a 7:3 Ratio. They could have made it more misleading by using 20-25 years Treasury (i.e. TLT and EDV ETF). ---- Back to your question #1 and #2. In the following charts: - Portfolio 1 represents 60% S&P 500 and 40% 10-year Treasury - Portfolio 2 100% S&P 500 Asseume Reinvested Dividend/Interest. $100k Lump Sum with No Rebalancing **= False** [![enter image description here][5]][5] $100k Lump Sum with Quarterly Rebalancing **= False** [![enter image description here][6]][6] $100k Lump Sum and $5k Monthly Dollar Cost Averaging with No Rebalancing **= False** [![enter image description here][7]][7] $100k Lump Sum and $5k Monthly Dollar Cost Averaging with Quarterly Rebalancing **= False** [![enter image description here][8]][8] ---- I would not spend a minute of my life watching such videos. [1]: https://i.sstatic.net/3nppT.png [2]: https://i.sstatic.net/FiTTs.png [3]: https://en.wikipedia.org/wiki/Modern_portfolio_theory [4]: https://www.bogleheads.org/wiki/Two-fund_portfolio [5]: https://i.sstatic.net/Bt89J.png [6]: https://i.sstatic.net/dhVGh.png [7]: https://i.sstatic.net/xps9t.png [8]: https://i.sstatic.net/SRie6.png