Bill Bernstein Coward's Portfolio
The Coward’s Portfolio, also known as the Smart Money Portfolio, is a popular lazy portfolio proposed by William Bernstein in 1996 at his Efficient Frontier website. It is designed for investors looking to extend simpler alternatives like his No-Brainer Portfolio.
Asset Allocation
Performance
Performance Chart
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The earliest data available for this chart is Mar 10, 2005, corresponding to the inception date of VPL
Returns By Period
As of May 31, 2025, the Bill Bernstein Coward's Portfolio returned 1.75% Year-To-Date and 6.04% of annualized return in the last 10 years.
| YTD | 1M | 6M | 1Y | 5Y* | 10Y* | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | 0.51% | 6.15% | -2.00% | 12.92% | 14.19% | 10.85% |
| Bill Bernstein Coward's Portfolio | 1.75% | 2.58% | -1.22% | 8.11% | 8.03% | 6.04% |
| Portfolio components: | ||||||
VNQ Vanguard Real Estate ETF | 1.30% | 1.12% | -7.18% | 13.84% | 6.90% | 5.35% |
VV Vanguard Large-Cap ETF | 1.11% | 6.46% | -1.36% | 14.82% | 15.76% | 12.75% |
SHY iShares 1-3 Year Treasury Bond ETF | 2.13% | -0.25% | 2.38% | 5.69% | 1.09% | 1.41% |
VPL Vanguard FTSE Pacific ETF | 11.80% | 4.57% | 7.20% | 10.84% | 8.01% | 5.21% |
IJR iShares Core S&P Small-Cap ETF | -8.27% | 5.23% | -15.69% | -0.80% | 11.49% | 7.58% |
VGK Vanguard FTSE Europe ETF | 21.43% | 5.28% | 18.10% | 14.62% | 12.96% | 6.41% |
IJS iShares S&P SmallCap 600 Value ETF | -11.53% | 4.27% | -17.60% | -1.56% | 12.12% | 6.55% |
VTV Vanguard Value ETF | 1.83% | 2.95% | -4.66% | 10.52% | 13.90% | 9.97% |
EEM iShares MSCI Emerging Markets ETF | 8.85% | 4.02% | 7.00% | 10.45% | 6.11% | 3.28% |
Monthly Returns
The table below presents the monthly returns of Bill Bernstein Coward's Portfolio, with color gradation from worst to best to easily spot seasonal factors. Returns are adjusted for dividends.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 1.97% | -0.19% | -1.89% | -0.65% | 2.58% | 1.75% | |||||||
| 2024 | -0.84% | 1.97% | 2.20% | -2.87% | 2.77% | 0.50% | 3.58% | 1.35% | 1.45% | -1.69% | 3.34% | -2.92% | 8.90% |
| 2023 | 5.09% | -2.31% | 0.52% | 0.32% | -1.54% | 3.56% | 2.59% | -1.98% | -2.90% | -2.03% | 5.58% | 4.85% | 11.79% |
| 2022 | -2.93% | -1.08% | 0.48% | -4.25% | 0.74% | -5.01% | 4.32% | -2.80% | -6.43% | 4.96% | 4.72% | -2.84% | -10.43% |
| 2021 | 0.83% | 2.83% | 2.53% | 2.15% | 1.31% | 0.25% | -0.10% | 1.24% | -2.23% | 2.56% | -1.66% | 2.86% | 13.14% |
| 2020 | -1.39% | -4.58% | -9.13% | 6.58% | 2.42% | 1.60% | 2.59% | 3.01% | -1.93% | -0.49% | 8.16% | 3.43% | 9.39% |
| 2019 | 5.58% | 1.66% | 0.31% | 2.01% | -3.70% | 3.97% | 0.23% | -1.21% | 1.81% | 1.56% | 1.36% | 2.00% | 16.41% |
| 2018 | 2.19% | -2.86% | -0.12% | 0.25% | 1.37% | 0.10% | 1.83% | 1.13% | -0.44% | -4.47% | 1.45% | -4.72% | -4.52% |
| 2017 | 0.95% | 1.59% | 0.27% | 0.67% | 0.38% | 0.89% | 1.30% | -0.19% | 1.96% | 0.95% | 1.50% | 0.63% | 11.43% |
| 2016 | -2.90% | -0.09% | 4.88% | 0.57% | 0.40% | 0.88% | 2.54% | 0.09% | 0.36% | -1.55% | 2.41% | 1.57% | 9.30% |
| 2015 | -0.92% | 2.74% | -0.13% | 0.39% | 0.23% | -1.08% | 0.20% | -3.73% | -1.39% | 4.22% | 0.18% | -1.49% | -1.00% |
| 2014 | -2.12% | 2.75% | 0.66% | 0.17% | 1.11% | 1.43% | -1.24% | 1.96% | -2.37% | 2.31% | 0.68% | -0.11% | 5.18% |
Expense Ratio
Bill Bernstein Coward's Portfolio has an expense ratio of 0.15%, which is considered low. Below, you can find the expense ratios of the portfolio's funds side by side and easily compare their relative costs.
Risk-Adjusted Performance
Risk-Adjusted Performance Rank
The current rank of Bill Bernstein Coward's Portfolio is 48, indicating average performance compared to other portfolios on our website. Here’s a breakdown of how it compares using common performance measures.
Risk-Adjusted Performance Indicators
This table presents a comparison of risk-adjusted performance metrics for positions. Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio | |
|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 0.77 | 1.17 | 1.15 | 0.60 | 2.46 |
VV Vanguard Large-Cap ETF | 0.74 | 1.04 | 1.15 | 0.69 | 2.62 |
SHY iShares 1-3 Year Treasury Bond ETF | 3.45 | 5.85 | 1.77 | 5.96 | 15.95 |
VPL Vanguard FTSE Pacific ETF | 0.57 | 0.83 | 1.11 | 0.58 | 1.72 |
IJR iShares Core S&P Small-Cap ETF | -0.03 | 0.13 | 1.02 | -0.03 | -0.08 |
VGK Vanguard FTSE Europe ETF | 0.83 | 1.21 | 1.16 | 0.98 | 2.76 |
IJS iShares S&P SmallCap 600 Value ETF | -0.06 | 0.08 | 1.01 | -0.06 | -0.16 |
VTV Vanguard Value ETF | 0.67 | 0.97 | 1.13 | 0.68 | 2.41 |
EEM iShares MSCI Emerging Markets ETF | 0.55 | 0.77 | 1.10 | 0.31 | 1.40 |
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Dividends
Dividend yield
Bill Bernstein Coward's Portfolio provided a 2.92% dividend yield over the last twelve months.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2.92% | 2.92% | 2.50% | 1.86% | 1.26% | 1.47% | 2.22% | 2.23% | 1.65% | 1.65% | 1.61% | 1.49% |
| Portfolio components: | ||||||||||||
VNQ Vanguard Real Estate ETF | 4.07% | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% | 3.60% |
VV Vanguard Large-Cap ETF | 1.25% | 1.24% | 1.41% | 1.66% | 1.19% | 1.46% | 1.81% | 2.09% | 1.75% | 1.98% | 1.96% | 1.77% |
SHY iShares 1-3 Year Treasury Bond ETF | 3.95% | 3.92% | 2.99% | 1.30% | 0.24% | 0.94% | 2.12% | 1.72% | 0.98% | 0.71% | 0.54% | 0.36% |
VPL Vanguard FTSE Pacific ETF | 3.00% | 3.15% | 3.12% | 2.75% | 3.19% | 1.81% | 2.85% | 3.06% | 2.57% | 2.65% | 2.43% | 2.69% |
IJR iShares Core S&P Small-Cap ETF | 2.24% | 2.05% | 1.31% | 1.41% | 1.53% | 1.11% | 1.44% | 1.58% | 1.20% | 1.21% | 1.48% | 1.23% |
VGK Vanguard FTSE Europe ETF | 2.89% | 3.61% | 3.15% | 3.25% | 3.05% | 2.11% | 3.27% | 3.95% | 2.70% | 3.52% | 3.25% | 4.62% |
IJS iShares S&P SmallCap 600 Value ETF | 2.01% | 1.78% | 1.42% | 1.46% | 1.52% | 1.00% | 1.66% | 1.75% | 1.41% | 1.22% | 1.59% | 1.41% |
VTV Vanguard Value ETF | 2.29% | 2.31% | 2.46% | 2.52% | 2.15% | 2.56% | 2.50% | 2.73% | 2.29% | 2.44% | 2.60% | 2.22% |
EEM iShares MSCI Emerging Markets ETF | 2.23% | 2.43% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.24% | 1.89% | 1.89% | 2.49% | 2.23% |
Drawdowns
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.
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Worst Drawdowns
The table below displays the maximum drawdowns of the Bill Bernstein Coward's Portfolio. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.
The maximum drawdown for the Bill Bernstein Coward's Portfolio was 37.25%, occurring on Mar 9, 2009. Recovery took 450 trading sessions.
The current Bill Bernstein Coward's Portfolio drawdown is 1.25%.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -37.25% | Oct 10, 2007 | 355 | Mar 9, 2009 | 450 | Dec 17, 2010 | 805 |
| -21.52% | Jan 21, 2020 | 44 | Mar 23, 2020 | 114 | Sep 2, 2020 | 158 |
| -16.65% | Nov 9, 2021 | 225 | Sep 30, 2022 | 342 | Feb 12, 2024 | 567 |
| -14.01% | May 2, 2011 | 108 | Oct 3, 2011 | 95 | Feb 17, 2012 | 203 |
| -11.06% | Aug 30, 2018 | 80 | Dec 24, 2018 | 70 | Apr 5, 2019 | 150 |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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Diversification
Diversification Metrics
Number of Effective Assets
The portfolio contains 9 assets, with an effective number of assets of 4.65, reflecting the diversification based on asset allocation. This number of effective assets suggests a highly concentrated portfolio, where a few assets dominate the allocation, potentially increasing the portfolio's risk due to lack of diversification.
Asset Correlations Table
| ^GSPC | SHY | VNQ | EEM | VPL | VGK | IJS | IJR | VTV | VV | Portfolio | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ^GSPC | 1.00 | -0.20 | 0.67 | 0.75 | 0.76 | 0.79 | 0.82 | 0.84 | 0.92 | 0.99 | 0.94 |
| SHY | -0.20 | 1.00 | -0.04 | -0.15 | -0.11 | -0.12 | -0.19 | -0.18 | -0.21 | -0.19 | -0.13 |
| VNQ | 0.67 | -0.04 | 1.00 | 0.52 | 0.53 | 0.56 | 0.68 | 0.68 | 0.69 | 0.67 | 0.75 |
| EEM | 0.75 | -0.15 | 0.52 | 1.00 | 0.80 | 0.77 | 0.66 | 0.67 | 0.71 | 0.75 | 0.81 |
| VPL | 0.76 | -0.11 | 0.53 | 0.80 | 1.00 | 0.79 | 0.67 | 0.68 | 0.73 | 0.76 | 0.82 |
| VGK | 0.79 | -0.12 | 0.56 | 0.77 | 0.79 | 1.00 | 0.69 | 0.70 | 0.78 | 0.79 | 0.84 |
| IJS | 0.82 | -0.19 | 0.68 | 0.66 | 0.67 | 0.69 | 1.00 | 0.98 | 0.85 | 0.82 | 0.92 |
| IJR | 0.84 | -0.18 | 0.68 | 0.67 | 0.68 | 0.70 | 0.98 | 1.00 | 0.85 | 0.85 | 0.93 |
| VTV | 0.92 | -0.21 | 0.69 | 0.71 | 0.73 | 0.78 | 0.85 | 0.85 | 1.00 | 0.91 | 0.93 |
| VV | 0.99 | -0.19 | 0.67 | 0.75 | 0.76 | 0.79 | 0.82 | 0.85 | 0.91 | 1.00 | 0.94 |
| Portfolio | 0.94 | -0.13 | 0.75 | 0.81 | 0.82 | 0.84 | 0.92 | 0.93 | 0.93 | 0.94 | 1.00 |
AI Insight on Diversification
The portfolio is moderately diversified with a mix of asset classes that exhibit varying degrees of correlation. The correlation matrix reveals that many equity positions within the portfolio are highly correlated with each other, particularly among U.S. equity ETFs such as IJS (small-cap value), IJR (small-cap), VTV (value), and VV (total market), with correlations often exceeding 0.85. This high correlation among domestic equity positions suggests some concentration risk, as these holdings tend to move in tandem, potentially limiting diversification benefits within the U.S. equity segment.
International equity positions—EEM (emerging markets), VPL (Pacific ex-Japan), and VGK (Europe)—also show strong positive correlations with each other (around 0.77 to 0.82) and with the U.S. equity ETFs (mostly above 0.65), indicating that global equity markets in this portfolio are somewhat synchronized. This reduces the diversification advantage typically sought by including international equities, although their correlations are slightly lower than those among U.S. equities.
The fixed income position, SHY (short-term Treasury), stands out as the least correlated asset in the portfolio, with negative or near-zero correlations to all equity positions (ranging from -0.04 to -0.21). This low and negative correlation helps reduce overall portfolio volatility and provides a diversification benefit by behaving differently than the equity holdings.
Looking at the correlation of the portfolio as a whole with individual positions, it is highest with VV (0.94), VTV (0.93), and IJR (0.93), indicating these positions have the greatest influence on the portfolio’s overall behavior. This suggests that the portfolio is somewhat dominated by broad and value-oriented U.S. equity exposures. The relatively lower correlation with SHY (-0.13) confirms its role as a diversifier rather than a driver of portfolio returns.
In summary, while the portfolio includes a variety of asset classes, the heavy correlations among U.S. and international equity positions imply that diversification benefits are somewhat limited within the equity sleeve. The inclusion of SHY provides meaningful diversification through its low and negative correlations with equities. Overall, the portfolio leans toward a concentrated equity exposure dominated by U.S. equities, with fixed income serving as the primary source of diversification.