All Weather vs 60/40 Portfolio

All Weather vs 60/40 Portfolio: Pros, Cons & When to Use Each | AllWeatherETF
Guide

All Weather vs 60/40 Portfolio: Pros, Cons & When to Use Each

Last updated: 2025-09-17 • ~8 min read

Overview

The classic 60/40 (60% equities, 40% bonds) is simple and proven. The All Weather aims for resilience through broader diversification and risk balancing.

Pros & Cons

All Weather + Broader diversification + Better inflation resilience − Higher complexity − May underperform in equity bull markets 60/40 + Simple and low-cost + Works in low inflation/stable regimes − Weaker in high inflation shocks − Less protection in severe drawdowns
Qualitative comparison of the two approaches.

Which Fits You?

  • 60/40: if you value simplicity, low maintenance, and low cost.
  • All Weather: if you want more resilience to inflation shocks and can accept extra complexity.

Bottom Line

Both have merit. Your choice depends on inflation concerns, risk tolerance, and preference for simplicity vs diversification.

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