Institutional Adoption and Momentum

The 60/40 portfolio has proven it’s here to stay, but it can benefit from a refresh like other classics. The total portfolio approach refines the 60/40. It takes a closer look at the components of the plain-vanilla portfolio and considers how risky they are. The goal is to help investors stay disciplined as market conditions change for the better or worse. Jason Kephart has written about the total portfolio approach. He’s a senior principal of multi-asset  manager research for Morningstar.

How a Total Portfolio Approach Can Improve the 60/40 Portfolio 

Morningstar’s Tax-Planning and IRA Resources for 2026

On this episode:

 00:00:00 Welcome

00:01:20 Total Portfolio Approach vs 60/40 Portfolio

00:01:52 How Growth and Stability Work

00:03:30 Why High-Yield Bonds Wouldn’t Go into Stability

00:04:30 Stocks That Might Be Better Suited for Stability than Growth

00:06:52 Challenges of the Total Portfolio Approach

00:08:49 How Investors Can Use This Strategy

Watch more from Morningstar:

Why REIT ETFs Still Work as Real Estate Slumps

How to Make the Most of Your IRA in 2026

3 Winners and 3 Losers from Emerging-Market Funds’ Big Rally

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