Diversified Portfolios Outperformed Traditional 60/40 Strategy in 2025
In 2025, diversified portfolios outperformed traditional 60/40 portfolios due to global market volatility and unusual events like the 'Liberation Day' tariffs. Morningstar's research found that a 11-asset-class portfolio returned 18%, compared to 13% for the 60/40 portfolio, largely due to allocations in international stocks and gold. However, the 60/40 strategy historically outperformed diversified strategies in most of the past 20 years.
Topics: asset allocation diversification market volatility portfolio performance