• Account Access
  • Contact Us

    Pre-Sales Support

    Mutual Funds and ETFs - 800-456-7526
    Monday-Thursday: 8:00 a.m. – 6:00 p.m. ET
    Friday: 8:00 a.m. – 5:00 p.m. ET

    ETF Trading Support - 415-315-6600
    Monday-Friday: 9:30 a.m. – 5:00 p.m. ET

    Post-Sales and Website Support
    888-843-7824
    Monday-Friday: 9:00 a.m. - 6:00 p.m. ET

  • Advisor Log In

Balance Out Volatility With a Balanced Portfolio

A well-balanced portfolio can help you manage volatility.

Client Conversations gives financial advisors an easy way to communicate with clients on topics influencing financial markets; it highlights common investor behaviors and offers ways to address the challenges investors face. Share this article with your clients, and remember to follow your firm's policies that govern sharing content with clients and prospects.

Client Conversations gives financial advisors an easy way to communicate with clients on topics influencing financial markets; it highlights common investor behaviors and offers ways to address the challenges investors face. Share this article with your clients, and remember to follow your firm's policies that govern sharing content with clients and prospects.



As volatility affects stocks and bonds, you might find yourself questioning your investment decisions. While we can’t control or predict how the market will behave at any given time, a well-balanced portfolio, with diversified holdings across asset classes, can help smooth out the ride. From 2000-2019, a balanced portfolio consisting of 60% stocks and 40% bonds provided provided nearly all the upside of stocks but with much less volatile returns.

 

A Balanced Portfolio Provided Nearly All the Upside of Stocks

Cumulative Returns

Years Stocks Bonds Balanced Investor Mindset
2000-2002 -37.6% 33.5% -6.4% "Why do I own stocks?"
2003-2007 82.9% 24.2% 51.8% "Why do I own bonds?"
2008 -37.0% 5.2% -15.9% "Why do I own stocks?"
2009-2017 258.8% 40.7% 129.8% "Why do I own bonds?"
2018 -4.4% 0.0% -2.2% "Why do I own stocks?"
2019 31.5% 8.7% 20.1% "Why do I own bonds?"
2000-2019 224.2% 166.9% 222.9%  
Growth of $100k $324,209 $266,866 $322,848  

Stocks represented by S&P 500 Index; Balanced Portfolio represented by 60% S&P 500 Index and 40% Bloomberg Barclays US Aggregate Bond Index; Bonds represented by 100% Bloomberg Barclays US Aggregate Bond Index

Past performance does not guarantee future results. For illustrative purposes only. Indices are unmanaged and not available for direct investment. Source: Morningstar and Hartford Funds, 1/20.

 

Talk to your advisor about how you can build a well-balanced portfolio.





S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.

Bloomberg Barclays US Aggregate Bond Index is composed of securities from the Bloomberg Barclays Government/Credit Bond Index, Mortgage-Backed Securities Index, Asset-Backed Securities Index, and Commercial Mortgage-Backed Securities Index.

Important Risks: Investing involves risk, including the possible loss of principal. • Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall. • Diversification does not ensure a profit or protect against a loss in a declining market.

This information should not be considered investment advice or a recommendation to buy/sell any security. In addition, it does not take into account the specific investment objectives, tax, and financial condition of any specific person.

Additional Information Regarding Bloomberg Barclays Indices Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

CCWP074   216801