{"url":"https://etfiq.com/benchmarks/income-40/","section":"benchmarks","title":"ETFIQ Income, 40% stocks: weights, rule and returns | ETFIQ","description":"ETFIQ Income, 40% stocks holds 20% VYM, 20% XYLD, 30% BND and AGG and 30% SPHY. Its returns by window and by year, risk and cost, as of Oct 7, 2026.","as_of":"Oct 7, 2026","structured_data":[{"@type":"ItemList","name":"What ETFIQ Income, 40% stocks holds","numberOfItems":5,"itemListElement":[{"@type":"ListItem","position":1,"name":"SPHY","url":"https://etfiq.com/funds/sphy"},{"@type":"ListItem","position":2,"name":"VYM","url":"https://etfiq.com/funds/vym"},{"@type":"ListItem","position":3,"name":"XYLD","url":"https://etfiq.com/funds/xyld"},{"@type":"ListItem","position":4,"name":"AGG","url":"https://etfiq.com/funds/agg"},{"@type":"ListItem","position":5,"name":"BND","url":"https://etfiq.com/funds/bnd"}]},{"@type":"FAQPage","mainEntity":[{"@type":"Question","name":"What is ETFIQ Income, 40% stocks?","acceptedAnswer":{"@type":"Answer","text":"A rules-based benchmark: 20% VYM, 20% XYLD, 30% US bonds (BND and AGG in equal parts) and 30% SPHY, rebalanced on the last trading day of each month. ETFIQ publishes it to measure income-focused models with about 40% in stocks. It is not a fund and cannot be bought."}},{"@type":"Question","name":"Is ETFIQ Income, 40% stocks a recommendation?","acceptedAnswer":{"@type":"Answer","text":"No. It is a yardstick, the same for everyone, and every weight follows from a written rule and public facts. ETFIQ publishes no trades for it and takes no payment from the issuer of any fund it holds."}},{"@type":"Question","name":"Why are some of its returns hypothetical?","acceptedAnswer":{"@type":"Answer","text":"ETFIQ froze the rule on Oct 3, 2026. Returns before Oct 5, 2026 apply today\u2019s rule and funds to earlier prices, which is look-ahead; returns from that date are tracked. The price source does not carry funds that closed before 2016, so nothing here is free of survivorship bias."}}]},{"@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"ETFIQ","item":"https://etfiq.com/"},{"@type":"ListItem","position":2,"name":"Benchmarks","item":"https://etfiq.com/benchmarks/"},{"@type":"ListItem","position":3,"name":"Income","item":"https://etfiq.com/benchmarks/income/"},{"@type":"ListItem","position":4,"name":"Income, 40% stocks","item":"https://etfiq.com/benchmarks/income-40/"}]},{"@type":"WebPage","name":"ETFIQ Income, 40% stocks: weights, rule and returns","description":"ETFIQ Income, 40% stocks holds 20% VYM, 20% XYLD, 30% BND and AGG and 30% SPHY. Its returns by window and by year, risk and cost, as of Oct 7, 2026.","url":"https://etfiq.com/benchmarks/income-40/","dateModified":"2026-10-08","isPartOf":{"@type":"WebSite","name":"ETFIQ","url":"https://etfiq.com"},"speakable":{"@type":"SpeakableSpecification","cssSelector":[".verdict",".faq"]},"publisher":{"@id":"https://etfiq.com/#org"}}],"characters":9550,"truncated":false,"content":"ETFIQ / Benchmarks / Income / Income, 40% stocks \n \n Rebuilt every trading night. Figures as of Oct 7, 2026; trailing windows end at the last month end, Sep 30, 2026.\n ETFIQ Income, 40% stocks benchmark\n A benchmark for income-focused models in the moderately conservative band: 20% VYM, 20% XYLD, 30% US bonds (BND and AGG in equal parts) and 30% SPHY, rebalanced on the last trading day of each month. A yardstick, not a recommendation.\n +5.75% Total return, 1 year \n +5.75% Total return a year, 10 years \n\n Over 10 years to Sep 30, 2026, ETFIQ Income, 40% stocks, had a total return of +5.75% a year, hypothetical.\n Launched on Oct 3, 2026, when ETFIQ froze its rule. Figures before Oct 5, 2026 are hypothetical: today\u2019s rule and funds applied to earlier prices, which is look-ahead. From Oct 5, 2026 the record is tracked, and a window that starts before it is hypothetical as a whole.\n Total return by calendar year\n 2014: +8.27% total return, hypothetical \n 2015: \u22120.57% total return, hypothetical \n 2016: +9.36% total return, hypothetical \n 2017: +9.75% total return, hypothetical \n 2018: \u22123.22% total return, hypothetical \n 2019: +15.67% total return, hypothetical \n 2020: +4.89% total return, hypothetical \n 2021: +9.94% total return, hypothetical \n 2022: \u22129.48% total return, hypothetical \n 2023: +9.12% total return, hypothetical \n 2024: +10.24% total return, hypothetical \n 2025: +9.44% total return, hypothetical \n 2026 to Oct 7, 2026: +3.90% total return, hypothetical \n Other income benchmarks\n Income, 20% stocks Income, 40% stocks Income, 60% stocks Income, 80% stocks Income, 95% stocks The rule\n The rule: 20% VYM, 20% XYLD, 30% US bonds (BND and AGG in equal parts) and 30% SPHY, rebalanced on the last trading day of each month. The income family\u2019s rule, as the method states it: \u201cx% stock sleeve, (100 - x)% bond sleeve.\u201d Methodology version 1.3; launched on Oct 3, 2026, when ETFIQ froze the family\u2019s rule. Every weight follows from the rule and public facts; the funds are chosen by the rules in the method .\n What it holds\n The weights the rule sets at each rebalance, in force since Jun 24, 2013. Each fund\u2019s expense ratio is from its prospectus, as of Oct 24, 2025, Feb 26, 2026, Feb 27, 2026, Apr 28, 2026 and Jun 18, 2026.\n 5 funds held by ETFIQ Income, 40% stocks, largest weight first, as of Oct 7, 2026. Source: ETFIQ. Ticker Fund Sleeve Weight Expense ratio \n SPHY State Street SPDR Portfolio High Yield Bond ETF High yield 30% 0.05% \n VYM Vanguard High Dividend Yield ETF Dividend stocks 20% 0.04% \n XYLD Global X S&P 500 Covered Call ETF Option income 20% 0.60% \n AGG iShares Core U.S. Aggregate Bond ETF US bonds 15% 0.03% \n BND Vanguard Total Bond Market ETF US bonds 15% 0.03% \n\n Weighted expense ratio 0.15%, each weight times its fund\u2019s expense ratio. It is already inside the returns below.\n Total return by window\n Trailing windows end at the last month end; the window since the start runs to the last close. A year is the annualised rate over whole months. Data sourced by Tiingo .\n Total return of ETFIQ Income, 40% stocks over each window, as of Oct 7, 2026. Data sourced by Tiingo. Window From To Total return A year Basis Note \n 1 year Sep 30, 2025 Sep 30, 2026 +5.75% +5.75% Hypothetical \n 3 years Sep 29, 2023 Sep 30, 2026 +32.95% +9.96% Hypothetical \n 5 years Sep 30, 2021 Sep 30, 2026 +27.23% +4.94% Hypothetical \n 10 years Sep 30, 2016 Sep 30, 2026 +74.83% +5.75% Hypothetical \n Since Jun 24, 2013 Jun 24, 2013 Oct 7, 2026 +119.82% +5.99% Hypothetical A year over whole months, Jun 28, 2013 to Sep 30, 2026 \n\n Total return by calendar year\n Each year from the last close of one December to the next; the current year runs to the last close. Data sourced by Tiingo .\n Calendar-year total return of ETFIQ Income, 40% stocks, as of Oct 7, 2026. Data sourced by Tiingo. Year Total return Basis Why not published \n 2026 to Oct 7, 2026 +3.90% Hypothetical \n 2025 +9.44% Hypothetical \n 2024 +10.24% Hypothetical \n 2023 +9.12% Hypothetical \n 2022 \u22129.48% Hypothetical \n 2021 +9.94% Hypothetical \n 2020 +4.89% Hypothetical \n 2019 +15.67% Hypothetical \n 2018 \u22123.22% Hypothetical \n 2017 +9.75% Hypothetical \n 2016 +9.36% Hypothetical \n 2015 \u22120.57% Hypothetical \n 2014 +8.27% Hypothetical \n 2013 not published not published the history starts 2013-06-24, after the last close of December 2012 \n\n Risk, cost and turnover\n Volatility and the Sharpe ratio need 36 monthly returns; a figure with fewer is not published and says why. Data sourced by Tiingo .\n Risk and cost figures for ETFIQ Income, 40% stocks, as of Oct 7, 2026. Data sourced by Tiingo. Figure Value Dates Basis Note \n Volatility, since the start 7.08% Jun 28, 2013 to Sep 30, 2026 Hypothetical \n Volatility, 10 years 7.59% Sep 30, 2016 to Sep 30, 2026 Hypothetical \n Volatility, 5 years 7.69% Sep 30, 2021 to Sep 30, 2026 Hypothetical \n Volatility, 3 years 5.68% Sep 29, 2023 to Sep 30, 2026 Hypothetical \n Maximum drawdown, since the start \u221221.21% Jun 24, 2013 to Oct 7, 2026 Hypothetical from a peak on Feb 20, 2020 to a low on Mar 23, 2020; back at the peak on Nov 13, 2020 \n Maximum drawdown, 1 year \u22123.49% Sep 30, 2025 to Sep 30, 2026 Hypothetical from a peak on Feb 25, 2026 to a low on Mar 27, 2026; back at the peak on Apr 17, 2026 \n Sharpe ratio, since the start 0.59 Jun 28, 2013 to Sep 30, 2026 Hypothetical return over the Treasury 13-week bill rate, per unit of volatility, monthly \n Sharpe ratio, 10 years 0.45 Sep 30, 2016 to Sep 30, 2026 Hypothetical return over the Treasury 13-week bill rate, per unit of volatility, monthly \n Sharpe ratio, 5 years 0.16 Sep 30, 2021 to Sep 30, 2026 Hypothetical return over the Treasury 13-week bill rate, per unit of volatility, monthly \n Turnover, since the start 6.90% a year Jun 28, 2013 to Sep 30, 2026 Hypothetical the share of the benchmark its rebalances traded, a year \n Factor loadings, since the start Mkt-RF 0.43; SMB 0.00; HML 0.06; RMW 0.07; CMA 0.05; Mom \u22120.02 Jun 28, 2013 to Aug 31, 2026 Hypothetical monthly excess return on the six factors, by least squares; each factor on its own row below \n Factor loading, market (Mkt-RF), since the start 0.43 Jun 28, 2013 to Aug 31, 2026 Hypothetical t statistic 26.11 \n Factor loading, size (SMB), since the start 0.00 Jun 28, 2013 to Aug 31, 2026 Hypothetical t statistic \u22120.14 \n Factor loading, value (HML), since the start 0.06 Jun 28, 2013 to Aug 31, 2026 Hypothetical t statistic 2.18 \n Factor loading, profitability (RMW), since the start 0.07 Jun 28, 2013 to Aug 31, 2026 Hypothetical t statistic 2.18 \n Factor loading, investment (CMA), since the start 0.05 Jun 28, 2013 to Aug 31, 2026 Hypothetical t statistic 1.38 \n Factor loading, momentum (Mom), since the start \u22120.02 Jun 28, 2013 to Aug 31, 2026 Hypothetical t statistic \u22121.12 \n Level, from 100 at the start 219.82 Jun 24, 2013 to Oct 7, 2026 Hypothetical the benchmark\u2019s value on Oct 7, 2026, from a base of 100 on Jun 24, 2013 \n Weighted expense ratio 0.15% Oct 7, 2026 Tracked each weight times its fund\u2019s expense ratio; already inside the returns \n Yield to beat: trailing 12-month distribution yield 6.03% Oct 2, 2025 to Oct 2, 2026 Hypothetical each weight times its fund\u2019s distributions over the 365 days to that close, over the close \n\n Questions people ask\n What is ETFIQ Income, 40% stocks? A rules-based benchmark: 20% VYM, 20% XYLD, 30% US bonds (BND and AGG in equal parts) and 30% SPHY, rebalanced on the last trading day of each month. ETFIQ publishes it to measure income-focused models with about 40% in stocks. It is not a fund and cannot be bought. Is ETFIQ Income, 40% stocks a recommendation? No. It is a yardstick, the same for everyone, and every weight follows from a written rule and public facts. ETFIQ publishes no trades for it and takes no payment from the issuer of any fund it holds. Why are some of its returns hypothetical? ETFIQ froze the rule on Oct 3, 2026. Returns before Oct 5, 2026 apply today\u2019s rule and funds to earlier prices, which is look-ahead; returns from that date are tracked. The price source does not carry funds that closed before 2016, so nothing here is free of survivorship bias. Total returns are market price with distributions reinvested, net of each fund\u2019s own fees, with nothing else deducted. The price source does not carry funds that closed before 2016, so nothing here is free of survivorship bias. Data sourced by Tiingo .\n Where these figures came from\n Data sourced by Tiingo U.S. Treasury daily bill rates, for the Sharpe ratio Each fund\u2019s page, with its prospectus and fee Where to next\n Every income benchmark How the benchmarks are built Every benchmark Core funds Look a portfolio through Every method Every model, side by side ETFIQ is an independent publisher of exchange-traded fund data. It is not a fund issuer, broker-dealer or investment adviser, takes no payment from issuers, and makes no recommendations.\n \n Cite this page. ETFIQ, ETFIQ Income, 40% stocks: weights, rule and returns, data as of Oct 7, 2026. https://etfiq.com/benchmarks/income-40/ Free to use with attribution for figures ETFIQ computes; issuer data stays under its owner's terms. The underlying files are at Open data .\n Other forms Plain ETFIQ, ETFIQ Income, 40% stocks: weights, rule and returns, data as of Oct 7, 2026. https://etfiq.com/benchmarks/income-40/ APA ETFIQ. (Oct 7, 2026). ETFIQ Income, 40% stocks: weights, rule and returns. Retrieved from https://etfiq.com/benchmarks/income-40/ Markdown [ETFIQ Income, 40% stocks: weights, rule and returns (ETFIQ, Oct 7, 2026)](https://etfiq.com/benchmarks/income-40/)","source":"ETFIQ, independent ETF data. Recomputed nightly from public filings and prices.","publisher":{"@id":"https://etfiq.com/#org","name":"ETFIQ","url":"https://etfiq.com"},"license":"https://etfiq.com/license/","license_text":"Figures ETFIQ computes are free to use with attribution: ETFIQ (etfiq.com). Issuer data stays under its owner's terms.","citation":"ETFIQ, ETFIQ Income, 40% stocks: weights, rule and returns, data as of Oct 7, 2026. https://etfiq.com/benchmarks/income-40/"}