VT 75% · GOVT 25% CAGR +7.3%
SPY CAGR +12.0%
Shaded: major market crises Bear Market (2022)
CalPERS Reference Portfolio
VT 75% · GOVT 25% · Fixed income · International equity
CalPERS · Reference Portfolio (board-approved March 2026) · 2026Sources (2)
5yr · 2021.10 – 2026.10 · $10,000 lump sum · monthly rebalancing · dividends reinvested · no taxes or fees · month-end
Final Balance $14,234
Invested $10,000
Gain +$4,234
SPY alone: $17,597
Annualized return +7.3%
4.7pp behind SPY
Max drawdown · month-end -22.6%
17 months from trough to recovery
SPY -23.9%
Loss after a 1-year hold 12%
6 of 49 past windows
None when held 3+ years
SPY 12%
Performance ⌄
Performance
Over 5 years it grew 1.4x; SPY grew 1.8x over the same period.
Calendar-year returns
Of 4 complete years: 1 with a loss, 1 ahead of SPY.
Show as a table
| Year | Selected allocation | SPY | In-year low |
|---|---|---|---|
| 2025 | +17.6% | +17.7% | -2.6% |
| 2024 | +13.0% | +24.9% | -3.3% |
| 2023 | +17.4% | +26.2% | -8.3% |
| 2022 | -16.7% | -18.2% | -22.6% |
Depending on when you bought
Every month in the window taken as a start, held one, three or five years.
Observed windows overlap and are not independent samples. These shares are not probabilities of future gains.
Risk & recovery
The deepest fall was -22.6%, regained 17 months after the low. During the Bear Market (2022) it returned -19.3%, while SPY returned -19.7%.
Holdings
By asset class: equities 75% · bonds 25%. Its dividend yield over the last 12 months was 2.1%; the results reinvest dividends.
- VTVanguard Total World Stock Index Fund ETF Shares 75%
- GOVTiShares U.S. Treasury Bond ETF 25%
Where this allocation comes fromCalPERS · Reference Portfolio (board-approved March 2026) · 2026
Also known as: CalPERS reference portfolio (75/25)
75% global stocks and 25% US Treasuries, the benchmark CalPERS, the largest US public pension, uses for its total fund from 2026.
| Asset in the source | Weight | Lifolio ETF |
|---|---|---|
| Global stocks | 75% | VT |
| US Treasuries (all maturities) | 25% | GOVT |
This is CalPERS's yardstick, not its actual holdings. The all-maturity Treasury ETF (GOVT) listed in 2012, so history starts then.
Source: calpers.ca.gov calpers.ca.gov
Lifolio is not affiliated with or endorsed by the people or organizations cited. Figures are historical simulations under Lifolio's standard conditions. Sources checked 2026-11-01.
Questions & methodology
What does the CalPERS Reference Portfolio hold?
Vanguard Total World Stock Index Fund ETF Shares (VT) iShares U.S. Treasury Bond ETF (GOVT)
What were the return and risk of the CalPERS Reference Portfolio?
From 2021.10 to 2026.10, the annualized return was +7.3% and the largest month-end drawdown was -22.6%. The Sharpe ratio (return for the risk) is 0.33.
How did it compare with holding SPY alone?
From 2021.10 to 2026.10, the annualized return was +7.3% for these weights and +12.0% for SPY. Over the same window the largest month-end drawdown was -22.6% for these weights and -23.9% for SPY.
How far did the CalPERS Reference Portfolio fall, and how long did it take to get back?
Over the selected 5 years, the largest month-end decline was -22.6%, from a high in 2021.12 to a low in 2022.09. It regained the old high 17 months after the low.
Are dividends, taxes and exchange rates included?
Dividends are reinvested and results are in USD. Taxes, currency moves against your home currency and trading fees are not included. These results use US-listed ETFs; Korea-listed ETFs such as KODEX and TIGER can be added in the backtest.
The server calculates portfolio examples and actual user allocations with the same period, starting balance and settings. Validated metrics and their supporting charts are shown together.
Price data through: 2026.10.30