William Bernstein Cowards
0.45%April 17 | MyPlanIQ portfolio symbol P_76468

  • Portfolio Overview
  • Asset Allocation and ETFs
  • Performance
  • Calculators
  • Rolling Returns
  • Drawdowns

Portfolio Overview


William Bernstein's Cowards Portfolio: Comprehensive Overview

1. Background and Philosophy

The William Bernstein Cowards Portfolio is designed by Dr. William Bernstein, a neurologist-turned-financial theorist and author of influential investing books like The Intelligent Asset Allocator and The Four Pillars of Investing. Bernstein advocates for low-cost, passive indexing and emphasizes diversification and risk management. This portfolio is tailored for conservative investors (hence "Cowards") who prioritize capital preservation while still seeking growth through equities. The 40% allocation to short-term bonds reflects a focus on reducing volatility.

2. Asset Allocation Analysis

The portfolio is split into 60% equities and 40% fixed income, with the equity portion heavily diversified across geographies and market segments:

  • U.S. Stocks (40% total): VTI (15%, broad market), VTV (10%, large-cap value), VB (5%, small-cap blend), VBR (10%, small-cap value). Value and small-cap tilts aim to capture historical risk premiums.
  • International Stocks (15% total): VGK (5%, Europe), VPL (5%, Pacific), VWO (5%, emerging markets). Provides global diversification.
  • REITs (5%): VNQ offers inflation-hedging real estate exposure.
  • Short-Term Bonds (40%): BSV minimizes interest rate risk.

Key Advantages:

  • Diversification: Covers domestic/international equities, value/small-cap factors, and bonds.
  • Low-cost: All ETFs are index-based with low expense ratios.
  • Risk-adjusted returns: The 40% bond allocation reduces volatility.

Potential Drawbacks:

  • Lower growth potential: Conservative allocation may lag in bull markets.
  • Complexity: 9 ETFs may require more rebalancing effort.
  • No commodities: Lacks inflation protection beyond REITs.

3. Practical Application in Retirement Accounts

For 401(k) Plans:

Investors should map the portfolio to their plan's available funds:

  • U.S. Stocks: Look for "Total Market" (VTI equivalent), "S&P 500" (for VTV), or "Small-Cap Index" (for VB/VBR).
  • International: Use "Developed Markets" (VGK/VPL) and "Emerging Markets" (VWO) funds.
  • REITs: If unavailable, allocate to a broader U.S. equity fund.
  • Bonds: Choose a "Short-Term Bond Index" (BSV equivalent) or "Total Bond Market" fund.

If exact matches are unavailable, simplify by combining allocations into broader categories (e.g., all international into one fund). For missing REITs or commodities, shift to stocks or bonds.

For IRAs:

Investors can replicate the portfolio exactly by purchasing the specified ETFs. IRAs offer more flexibility than 401(k)s, making this a strong option for hands-off retirement savings.

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Asset Allocation


Symbol Category/Sector Target Weight
VTI
Vanguard Total Stock Market ETF 		US Equity 15%
VTV
Vanguard Value ETF 		US Equity 10%
VB
Vanguard Small-Cap ETF 		US Equity 5%
VBR
Vanguard Small Cap Value ETF 		US Equity 10%
VGK
Vanguard FTSE Europe ETF 		International Equity 5%
VPL
Vanguard FTSE Pacific ETF 		International Equity 5%
VWO
Vanguard FTSE Emerging Markets ETF 		International Equity 5%
VNQ
Vanguard Real Estate ETF 		Real Estate 5%
BSV
Vanguard Short-Term Bond ETF 		Fixed Income 40%


Historical Performance


The return data shown below all have the same latest date: 04/17/2025.
AR inception is since 04/10/2007.
Name YTD Return 1Yr AR 3Yr AR 5Yr AR 10Yr AR 15Yr AR 20Yr AR Inception
William Bernstein Cowards -3.10% 5.42% 3.76% 8.20% 5.51% 6.12% NA 5.10%
VFINX (VANGUARD 500 INDEX FUND INVESTOR SHARES) -9.87% 6.47% 7.85% 14.63% 11.64% 12.39% 9.95% 9.47%
VSMGX (VANGUARD LIFESTRATEGY MODERATE GROWTH FUND INVESTOR SHARES) -2.20% 6.94% 4.50% 7.24% 5.46% 6.38% 5.87% 5.13%

William Bernstein Cowards Return Calculator

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Calculators


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Rolling Returns


From 04/10/2007 to 04/17/2025, the worst annualized return of 3-year rolling returns for William Bernstein Cowards is -2.86%.

From 04/10/2007 to 04/17/2025, the worst annualized return of 5-year rolling returns for William Bernstein Cowards is 0.69%.

From 04/10/2007 to 04/17/2025, the worst annualized return of 10-year rolling returns for William Bernstein Cowards is 4.21%.


Maximum Drawdown

William Bernstein Cowards Maximum Drawdown