This is the article detailing the William Bernstein portfolios. William Bernstein is one of the 3 good guys in investing. He is truly one of the giants in investing. In this article, you will find 32 of his portfolios along with asset allocation and performance.
William Bernstein Portfolios: The Portfolio Giant
Contents
- 1 William Bernstein Portfolios: The Portfolio Giant
- 2 Who is William Bernstein?
- 3 What is special about the William Bernstein portfolios?
- 4 Performance of the William Bernstein portfolios
- 5 Asset Allocation of the William Bernstein portfolios
- 5.1 William Bernstein Cowards Portfolio
- 5.2 William Bernstein Four Pillars High-Risk Portfolio
- 5.3 William Bernstein Four Pillars Low-Risk Portfolio
- 5.4 William Bernstein Four Pillars Medium Portfolio
- 5.5 William Bernstein No Brainer Portfolio
- 5.6 William Bernstein Sheltered Sam Portfolio
- 5.7 William Bernstein Sheltered Sam 100% Stocks
- 5.8 William Bernstein Sheltered Sam 90/10
- 5.9 William Bernstein Sheltered Sam 80/20
- 5.10 William Bernstein Sheltered Sam 70/30
- 5.11 William Bernstein Sheltered Sam 60/40
- 5.12 William Bernstein Sheltered Sam 50/50
- 5.13 William Bernstein Sheltered Sam 40/60
- 5.14 William Bernstein Sheltered Sam 30/70
- 5.15 William Bernstein Sheltered Sam 20/80
- 5.16 William Bernstein Sheltered Sam 10/90
- 5.17 William Bernstein Sheltered Sam 100% Bonds
- 5.18 William Bernstein Young Yvonne Portfolio
- 5.19 William Bernstein Charlie Cringe Portfolio
- 5.20 William Bernstein Wendy Wonk Portfolio
- 5.21 William Bernstein Between Charlie and Wendy Portfolio
- 6 Resources for William Bernstein
- 7 Conclusion
Who is William Bernstein?
William Bernstein, a former doctor, investment consultant and an all-around good guy in the investing world has presented a host of portfolios through his career. His book, The Four Pillars of Investing: Lessons for Building a Winning Portfolio is required reading on investing. His investing philosophy is broad diversification, common sense and a realistic expectation of future returns. Other books that come highly recommended are Rational Expectations: Asset Allocation for Investing Adults and The Intelligent Asset Allocator: How to Build Your Portfolio to Maximize Returns and Minimize Risk.
William Bernstein is one of the first names you encounter when entering the investing world, especially the personal investing world. But his investing principles apply to institutional investing as well.
His book William Bernstein: The Four Pillars of Investing: Lessons for Building a Winning Portfolio is one of the best books on investing you can read. It is on our very shortlist of the very best investing book ever written.
William Bernstein is also one of the very few good guys in investing. He has gone above and beyond in helping the everyday investor to get better returns through a solid investing framework.
What is special about the William Bernstein portfolios?
The one thing that William Bernstein focuses on in his portfolios is diversification through many asset classes. He is a self-proclaimed asset class junkie.
Therefore his portfolios display very broad diversification.
In addition to this William Bernstein is a 360-degree investor so he takes into account a lot of factors. For example:
- Asset location (to minimize taxes)
- Specific asset class to minimize taxes like muni bonds
- Your age
- Your appetite for risk
- Your employer’s fund offerings if you are investing through a 401K.
All this makes Bernstein shine as a very helpful guide in all of your investment endeavors.
Finally, he is adamant about facing reality and being very aware of what you can expect in the returns of your portfolios.
William Bernstein’s most famous portfolios are the lazy portfolios. The two are the No-brainer portfolio and the Cowards’ portfolio. You can read more about those specific portfolios in our posts on Lazy Portfolios and 5 Reasons Why A Lazy Portfolio Is Right For You.
If you are interested in learning way more about William Bernstein and his investing philosophy pick up one or two of his books. Apart from his book Four Pillars I very much recommend the following two:
Performance of the William Bernstein portfolios
| Portfolio Name | Number of asset classes | 1 year return 2019 | YTD (incl. December 2019) | 10 year return | CAGR since 1989 | Std | Sharpe | Drawdown | Risk Level | Market Correlation | Dollar Value |
|---|---|---|---|---|---|---|---|---|---|---|---|
| S&P 500 (Benchmark) | 1 | 31.25% | 31.25% | 12.97% | 9.84% | 17.46% | 0.48 | -37.71% | 5 - very high risk | 0.99 | $167,045.76 |
| William Bernstein No Brainer Portfolio | 4 | 19.82% | 19.82% | 8.68% | 7.68% | 12.90% | 0.42 | -27.63% | 4 - high risk | 0.95 | $91,983.79 |
| William Bernstein Cowards Portfolio | 9 | 16.87% | 16.87% | 7.38% | 7.88% | 9.89% | 0.54 | -19.93% | 2 - low risk | 0.93 | $97,354.23 |
| William Bernstein Four Pillars High Risk Portfolio | 11 | 18.82% | 18.82% | 7.74% | 7.94% | 12.71% | 0.45 | -28.32% | 4 - high risk | 0.88 | $99,067.16 |
| William Bernstein Four Pillars Medium Portfolio | 6 | 17.71% | 17.71% | 7.60% | 7.73% | 9.67% | 0.54 | -19.65% | 2 - low risk | 0.96 | $93,369.08 |
| William Bernstein Four Pillars Low Risk Portfolio | 4 | 16.12% | 16.12% | 6.58% | 7.14% | 8.31% | 0.55 | -15.89% | 2 - low risk | 0.97 | $79,194.72 |
| iShares Model Portfolio 65% Stocks | 4 | 20.72% | 20.72% | 8.27% | 7.57% | 11.48% | 0.45 | -24.02% | 3 - medium risk | 0.96 | $89,214.11 |
| William Bernstein Sheltered Sam Portfolio | 12 | 16.79% | 16.79% | 7.57% | 7.99% | 9.96% | 0.55 | -21.69% | 3 - medium risk | 0.91 | $100,223.07 |
| William Bernstein Taxable Ted 100% Stocks | 4 | 26.80% | 26.80% | 11.43% | 8.76% | 16.30% | 0.43 | -37.92% | 5 - very high risk | 0.95 | $124,146.79 |
| William Bernstein Taxable Ted 90/10 | 5 | 25.00% | 25.00% | 10.67% | 8.61% | 14.72% | 0.45 | -33.62% | 4 - high risk | 0.95 | $119,095.91 |
| William Bernstein Taxable Ted 80/20 | 5 | 23.20% | 23.20% | 9.91% | 8.42% | 13.16% | 0.47 | -29.32% | 4 - high risk | 0.95 | $113,156.60 |
| William Bernstein Taxable Ted 70/30 | 5 | 21.41% | 21.41% | 9.13% | 8.21% | 11.62% | 0.5 | -25.03% | 3 - medium risk | 0.95 | $106,534.84 |
| William Bernstein Taxable Ted 60/40 | 5 | 19.61% | 19.61% | 8.34% | 7.96% | 10.12% | 0.53 | -20.73% | 2 - low risk | 0.95 | $99,425.41 |
| William Bernstein Taxable Ted 50/50 | 5 | 17.82% | 17.82% | 7.53% | 7.68% | 8.69% | 0.57 | -16.43% | 2 - low risk | 0.93 | $92,008.47 |
| William Bernstein Taxable Ted 40/60 | 5 | 16.02% | 16.02% | 6.72% | 7.37% | 7.35% | 0.63 | -12.13% | 1 - very low risk | 0.9 | $84,447.13 |
| William Bernstein Taxable Ted 30/70 | 5 | 14.23% | 14.23% | 5.89% | 7.04% | 6.18% | 0.7 | -7.84% | 1 - very low risk | 0.83 | $76,885.81 |
| William Bernstein Taxable Ted 20/80 | 5 | 12.43% | 12.43% | 5.04% | 6.67% | 5.28% | 0.77 | -3.54% | 1 - very low risk | 0.69 | $69,449.30 |
| William Bernstein Taxable Ted 10/90 | 5 | 10.63% | 10.63% | 4.19% | 6.28% | 4.80% | 0.8 | -2.17% | 1 - very low risk | 0.44 | $62,242.48 |
| William Bernstein Taxable Ted 100% Bonds | 1 | 8.84% | 8.84% | 3.31% | 5.87% | 4.87% | 0.72 | -2.66% | 1 - very low risk | 0.12 | $55,350.68 |
| William Bernstein Sheltered Sam 100% Stocks | 10 | 25.28% | 25.28% | 10.97% | 9.34% | 16.15% | 0.47 | -38.06% | 5 - very high risk | 0.92 | $145,530.74 |
| William Bernstein Sheltered Sam 90/10 | 12 | 23.37% | 23.37% | 10.27% | 9.06% | 14.71% | 0.48 | -34.65% | 5 - very high risk | 0.92 | $134,750.55 |
| William Bernstein Sheltered Sam 80/20 | 12 | 21.45% | 21.45% | 9.56% | 8.75% | 13.28% | 0.49 | -31.25% | 4 - high risk | 0.92 | $123,801.51 |
| William Bernstein Sheltered Sam 70/30 | 12 | 19.54% | 19.54% | 8.84% | 8.41% | 11.88% | 0.51 | -27.84% | 4 - high risk | 0.91 | $112,887.14 |
| William Bernstein Sheltered Sam 60/40 | 12 | 17.63% | 17.63% | 8.10% | 8.06% | 10.51% | 0.53 | -24.43% | 3 - medium risk | 0.9 | $102,180.70 |
| William Bernstein Sheltered Sam 50/50 | 12 | 15.72% | 15.72% | 7.36% | 7.67% | 9.19% | 0.55 | -21.02% | 3 - medium risk | 0.89 | $91,825.66 |
| William Bernstein Sheltered Sam 40/60 | 12 | 13.80% | 13.80% | 6.60% | 7.26% | 7.94% | 0.58 | -17.62% | 2 - low risk | 0.86 | $81,936.79 |
| William Bernstein Sheltered Sam 30/70 | 12 | 11.89% | 11.89% | 5.83% | 6.83% | 6.80% | 0.6 | -14.21% | 2 - low risk | 0.8 | $72,601.99 |
| William Bernstein Sheltered Sam 20/80 | 12 | 9.98% | 9.98% | 5.05% | 6.38% | 5.84% | 0.63 | -10.80% | 1 - very low risk | 0.69 | $63,884.40 |
| William Bernstein Sheltered Sam 10/90 | 12 | 8.07% | 8.07% | 4.26% | 5.90% | 5.16% | 0.63 | -7.39% | 1 - very low risk | 0.52 | $55,824.90 |
| William Bernstein Sheltered Sam 100% Bonds | 2 | 6.16% | 6.16% | 3.46% | 5.40% | 4.88% | 0.57 | -3.99% | 1 - very low risk | 0.26 | $48,444.77 |
| William Bernstein Young Yvonne Portfolio | 11 | 18.70% | 18.70% | 8.06% | 8.29% | 10.13% | 0.57 | -20.82% | 2 - low risk | 0.91 | $109,029.07 |
| William Bernstein Charlie Cringe Portfolio | 4 | 16.20% | 16.20% | 6.55% | 7.11% | 8.26% | 0.55 | -15.61% | 2 - low risk | 0.97 | $78,560.57 |
| William Bernstein Wendy Wonk Portfolio | 11 | 18.82% | 18.82% | 7.74% | 7.94% | 12.71% | 0.45 | -28.32% | 4 - high risk | 0.88 | $99,067.16 |
| William Bernstein Between Charlie and Wendy Portfolio | 6 | 17.79% | 17.79% | 7.57% | 7.70% | 9.62% | 0.53 | -19.37% | 2 - low risk | 0.96 | $92,643.31 |
Asset Allocation of the William Bernstein portfolios
William Bernstein Cowards Portfolio
- 10.00% US Large Cap Value (VTV)
- 15.00% US Large Cap (VV)
- 10.00% US Small Cap Value (VIOV)
- 5.00% US Small Cap (VIOO)
- 5.00% REITs (VNQ)
- 5.00% Emerging Markets (VWO)
- 5.00% Pacific Stocks (VPL)
- 5.00% European Stocks (VGK)
- 40.00% Short Term Treasuries (VGSH)
William Bernstein Four Pillars High-Risk Portfolio
- 10.00% US Large Cap Value (VTV)
- 10.00% US Large Cap (VV)
- 7.50% US Small Cap Value (VIOV)
- 5.00% US Small Cap (VIOO)
- 7.50% REITs (VNQ)
- 7.50% Emerging Markets (VWO)
- 7.50% Pacific Stocks (VPL)
- 10.00% European Stocks (VGK)
- 7.50% International Large Cap Value (EFV)
- 25.00% Short Term Treasuries (VGSH)
- 2.50% Precious Metals (GLTR)
Highlighted in the above pie chart
William Bernstein Four Pillars Low-Risk Portfolio
- 35.00% US Total Stock Market (VTI)
- 5.00% REITs (VNQ)
- 10.00% International All-World ex-US (VEU)
- 50.00% Short Term Treasuries (VGSH)
William Bernstein Four Pillars Medium Portfolio
- 25.00% US Total Stock Market (VTI)
- 10.00% US Large Cap Value (VTV)
- 10.00% US Small Cap Value (VIOV)
- 5.00% REITs (VNQ)
- 10.00% International All-World ex-US (VEU)
- 40.00% Short Term Treasuries (VGSH)
William Bernstein No Brainer Portfolio
- 25.00% US Large Cap (VV)
- 25.00% US Small Cap (VIOO)
- 25.00% International All-World ex-US (VEU)
- 25.00% Short Term Treasuries (VGSH)
The No-Brainer portfolio is part of the group of Lazy Portfolios.
William Bernstein Sheltered Sam Portfolio
- 15.00% US Large Cap Value (VTV)
- 12.00% US Large Cap (VV)
- 9.00% US Small Cap Value (VIOV)
- 3.00% US Small Cap (VIOO)
- 6.00% REITs (VNQ)
- 3.00% Emerging Markets (VWO)
- 3.00% Pacific Stocks (VPL)
- 3.00% European Stocks (VGK)
- 4.20% International Large Cap Value (EFV)
- 24.00% Short Term Treasuries (VGSH)
- 1.80% Precious Metals (GLTR)
- 16.00% TIPS (VTIP)
William Bernstein Sheltered Sam 100% Stocks
- 25.00% US Large Cap Value (VTV)
- 20.00% US Large Cap (VV)
- 15.00% US Small Cap Value (VIOV)
- 5.00% US Small Cap (VIOO)
- 10.00% REITs (Real Estate) (VNQ)
- 5.00% Emerging Markets (VWO)
- 5.00% Pacific Stocks (VPL)
- 5.00% European Stocks (VGK)
- 7.00% International Lg Cap Value (EFV)
- 3.00% Precious Metals (GLTR)
William Bernstein Sheltered Sam 90/10
- 22.50% US Large Cap Value (VTV)
- 18.00% US Large Cap (VV)
- 13.50% US Small Cap Value (VIOV)
- 4.50% US Small Cap (VIOO)
- 9.00% REITs (Real Estate) (VNQ)
- 4.50% Emerging Markets (VWO)
- 4.50% Pacific Stocks (VPL)
- 4.50% European Stocks (VGK)
- 6.30% International Lg Cap Value (EFV)
- 2.70% Precious Metals (GLTR)
- 6.00% Short-Term Investment-Grade (VCSH)
- 4.00% TIPS (VTIP)
William Bernstein Sheltered Sam 80/20
- 20.00% US Large Cap Value (VTV)
- 16.00% US Large Cap (VV)
- 12.00% US Small Cap Value (VIOV)
- 4.00% US Small Cap (VIOO)
- 8.00% REITs (Real Estate) (VNQ)
- 4.00% Emerging Markets (VWO)
- 4.00% Pacific Stocks (VPL)
- 4.00% European Stocks (VGK)
- 5.60% International Lg Cap Value (EFV)
- 2.40% Precious Metals (GLTR)
- 12.00% Short-Term Investment-Grade (VCSH)
- 8.00% TIPS (VTIP)
William Bernstein Sheltered Sam 70/30
- 17.50% US Large Cap Value (VTV)
- 14.00% US Large Cap (VV)
- 10.50% US Small Cap Value (VIOV)
- 3.50% US Small Cap (VIOO)
- 7.00% REITs (Real Estate) (VNQ)
- 3.50% Emerging Markets (VWO)
- 3.50% Pacific Stocks (VPL)
- 3.50% European Stocks (VGK)
- 4.90% International Lg Cap Value (EFV)
- 2.10% Precious Metals (GLTR)
- 18.00% Short-Term Investment-Grade (VCSH)
- 12.00% TIPS (VTIP)
William Bernstein Sheltered Sam 60/40
- 15.00% US Large Cap Value (VTV)
- 12.00% US Large Cap (VV)
- 9.00% US Small Cap Value (VIOV)
- 3.00% US Small Cap (VIOO)
- 6.00% REITs (Real Estate) (VNQ)
- 3.00% Emerging Markets (VWO)
- 3.00% Pacific Stocks (VPL)
- 3.00% European Stocks (VGK)
- 4.20% International Lg Cap Value (EFV)
- 1.80% Precious Metals (GLTR)
- 24.00% Short-Term Investment-Grade (VCSH)
- 16.00% TIPS (VTIP)
William Bernstein Sheltered Sam 50/50
- 12.50% US Large Cap Value (VTV)
- 10.00% US Large Cap (VV)
- 7.50% US Small Cap Value (VIOV)
- 2.50% US Small Cap (VIOO)
- 5.00% REITs (Real Estate) (VNQ)
- 2.50% Emerging Markets (VWO)
- 2.50% Pacific Stocks (VPL)
- 2.50% European Stocks (VGK)
- 3.50% International Lg Cap Value (EFV)
- 1.50% Precious Metals (GLTR)
- 30.00% Short-Term Investment-Grade (VCSH)
- 20.00% TIPS (VTIP)
William Bernstein Sheltered Sam 40/60
- 10.00% US Large Cap Value (VTV)
- 8.00% US Large Cap (VV)
- 6.00% US Small Cap Value (VIOV)
- 2.00% US Small Cap (VIOO)
- 4.00% REITs (Real Estate) (VNQ)
- 2.00% Emerging Markets (VWO)
- 2.00% Pacific Stocks (VPL)
- 2.00% European Stocks (VGK)
- 2.80% International Lg Cap Value (EFV)
- 1.20% Precious Metals (GLTR)
- 36.00% Short-Term Investment-Grade (VCSH)
- 24.00% TIPS (VTIP)
William Bernstein Sheltered Sam 30/70
- 7.50% US Large Cap Value (VTV)
- 6.00% US Large Cap (VV)
- 4.50% US Small Cap Value (VIOV)
- 1.50% US Small Cap (VIOO)
- 3.00% REITs (Real Estate) (VNQ)
- 1.50% Emerging Markets (VWO)
- 1.50% Pacific Stocks (VPL)
- 1.50% European Stocks (VGK)
- 2.10% International Lg Cap Value (EFV)
- 0.90% Precious Metals (GLTR)
- 42.00% Short-Term Investment-Grade (VCSH)
- 28.00% TIPS (VTIP)
William Bernstein Sheltered Sam 20/80
- 5.00% US Large Cap Value (VTV)
- 4.00% US Large Cap (VV)
- 3.00% US Small Cap Value (VIOV)
- 1.00% US Small Cap (VIOO)
- 2.00% REITs (Real Estate) (VNQ)
- 1.00% Emerging Markets (VWO)
- 1.00% Pacific Stocks (VPL)
- 1.00% European Stocks (VGK)
- 1.40% International Lg Cap Value (EFV)
- 0.60% Precious Metals (GLTR)
- 48.00% Short-Term Investment-Grade (VCSH)
- 32.00% TIPS (VTIP)
William Bernstein Sheltered Sam 10/90
- 2.50% US Large Cap Value (VTV)
- 2.00% US Large Cap (VV)
- 1.50% US Small Cap Value (VIOV)
- 0.50% US Small Cap (VIOO)
- 1.00% REITs (Real Estate) (VNQ)
- 0.50% Emerging Markets (VWO)
- 0.50% Pacific Stocks (VPL)
- 0.50% European Stocks (VGK)
- 0.70% International Lg Cap Value (EFV)
- 0.30% Precious Metals (GLTR)
- 54.00% Short-Term Investment-Grade (VCSH)
- 36.00% TIPS (VTIP)
William Bernstein Sheltered Sam 100% Bonds
- 60.00% Short-Term Investment-Grade (VCSH)
- 40.00% TIPS (VTIP)
William Bernstein Young Yvonne Portfolio
- 15.00% US Large Cap Value (VTV)
- 12.00% US Large Cap (VV)
- 9.00% US Small Cap Value (VIOV)
- 3.00% US Small Cap (VIOO)
- 6.00% REITs (Real Estate) (VNQ)
- 3.00% Emerging Markets (VWO)
- 3.00% Pacific Stocks (VPL)
- 3.00% European Stocks (VGK)
- 4.20% International Lg Cap Value (EFV)
- 40.00% Total US Bond Market (BND)
- 1.80% Precious Metals (GLTR)
William Bernstein Charlie Cringe Portfolio
- 35.00% US Total Stock Market (VTI)
- 5.00% REITs (Real Estate) (VNQ)
- 10.00% Int. Developed Blend (VEA)
- 50.00% Short Term Treasury (VGSH)
William Bernstein Wendy Wonk Portfolio
- 10.00% US Large Cap Value (VTV)
- 10.00% US Large Cap (VV)
- 7.50% US Small Cap Value (VIOV)
- 5.00% US Small Cap (VIOO)
- 7.50% REITs (Real Estate) (VNQ)
- 7.50% Emerging Markets (VWO)
- 7.50% Pacific Stocks (VPL)
- 10.00% European Stocks (VGK)
- 7.50% International Lg Cap Value (EFV)
- 25.00% Short Term Treasury (VGSH)
- 2.50% Precious Metals (GLTR)
William Bernstein Between Charlie and Wendy Portfolio
- 25.00% US Total Stock Market (VTI)
- 10.00% US Large Cap Value (VTV)
- 10.00% US Small Cap Value (VIOV)
- 5.00% REITs (Real Estate) (VNQ)
- 10.00% Int. Developed Blend (VEA)
- 40.00% Short Term Treasury (VGSH)
Find the best ETFs and mutual funds in our updated article What Is The Best ETF And Mutual Fund?
Resources for William Bernstein
His website The Efficient Frontier details he many books and a few other resources
His many books on Amazon. He has written on other topics other than investing. His book A Splendid Exchange is a fantastic inquiry on how trade enabled the modern world.
He has appeared on many financial and investing podcasts, use this search to find them all.
He is one of only three good guys in investing.
Conclusion
Which portfolio do you use?
After having read up on the William Bernstein portfolios I encourage you to find other great portfolios right here on portfolioeinstein.com.
If you have suggestions for new portfolios be sure to add them in comments or reach out to me.
I would love hearing from you!