What Is the Total Portfolio Approach

Jason explains the approach: focus on behavior and risk of holdings rather than asset labels to refine 60/40 construction.

Play episode from 00:40

chevron_right

Transcript

chevron_right

Transcript

Episode notes

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