Bill Bernstein No Brainer Portfolio
No Brainer Portfolio is perhaps the most straightforward portfolio presented by William Bernstein in his book The Intelligent Asset Allocator. It is a simple and diversified investment strategy that allocates assets equally across four core asset classes. With a 25% allocation each to VEA, VB, BND, and VOO, the portfolio covers international developed markets, U.S. small-cap stocks, U.S. total bond market, and U.S. large-cap stocks. This balanced approach aims to provide a mix of capital appreciation, income, and diversification benefits. The portfolio suits investors seeking a straightforward, easy-to-manage investment strategy that balances stability, revenue, and growth potential.
Asset Allocation
| Position | Category/Sector | Target Weight |
|---|---|---|
BND Vanguard Total Bond Market ETF | Total Bond Market | 25% |
VB Vanguard Small-Cap ETF | Small Cap Growth Equities | 25% |
VEA Vanguard FTSE Developed Markets ETF | Foreign Large Cap Equities | 25% |
VOO Vanguard S&P 500 ETF | Large Cap Growth Equities | 25% |
Performance
Performance Chart
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The earliest data available for this chart is Sep 9, 2010, corresponding to the inception date of VOO
Returns By Period
As of May 31, 2025, the Bill Bernstein No Brainer Portfolio returned 3.82% Year-To-Date and 7.46% 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 No Brainer Portfolio | 3.82% | 4.07% | -0.13% | 10.20% | 9.61% | 7.46% |
| Portfolio components: | ||||||
VEA Vanguard FTSE Developed Markets ETF | 16.76% | 5.13% | 12.67% | 14.08% | 11.40% | 6.14% |
VB Vanguard Small-Cap ETF | -4.65% | 5.57% | -11.72% | 5.21% | 11.52% | 8.00% |
BND Vanguard Total Bond Market ETF | 2.49% | -0.67% | 0.77% | 5.82% | -1.00% | 1.54% |
VOO Vanguard S&P 500 ETF | 0.90% | 6.28% | -1.46% | 14.27% | 15.89% | 12.81% |
Monthly Returns
The table below presents the monthly returns of Bill Bernstein No Brainer 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 | 2.91% | -0.43% | -2.88% | 0.26% | 4.07% | 3.82% | |||||||
| 2024 | -0.58% | 3.08% | 3.07% | -4.08% | 3.83% | 0.34% | 3.40% | 1.67% | 1.62% | -2.30% | 4.55% | -3.81% | 10.79% |
| 2023 | 7.20% | -2.74% | 1.30% | 0.90% | -1.60% | 4.87% | 2.82% | -2.50% | -4.16% | -3.23% | 7.91% | 5.99% | 16.94% |
| 2022 | -4.76% | -1.49% | 0.75% | -6.93% | 0.68% | -7.07% | 6.85% | -3.83% | -8.23% | 5.72% | 6.55% | -3.68% | -15.77% |
| 2021 | -0.15% | 2.48% | 1.99% | 3.29% | 1.11% | 0.92% | 0.66% | 1.51% | -3.06% | 3.81% | -2.37% | 2.97% | 13.70% |
| 2020 | -0.77% | -5.60% | -12.33% | 9.27% | 4.75% | 2.16% | 3.65% | 3.84% | -2.13% | -1.12% | 10.57% | 4.39% | 15.45% |
| 2019 | 7.06% | 2.66% | 0.84% | 2.61% | -4.29% | 5.22% | 0.19% | -1.20% | 1.45% | 1.84% | 2.29% | 2.18% | 22.45% |
| 2018 | 2.94% | -3.49% | -0.29% | 0.29% | 1.69% | -0.04% | 1.91% | 1.67% | -0.19% | -6.60% | 1.29% | -5.79% | -6.92% |
| 2017 | 1.79% | 1.97% | 0.75% | 1.23% | 1.11% | 0.86% | 1.63% | 0.06% | 2.12% | 1.41% | 1.73% | 0.99% | 16.80% |
| 2016 | -4.18% | -0.40% | 5.71% | 1.21% | 0.83% | 0.16% | 3.37% | 0.23% | 0.54% | -2.30% | 2.02% | 1.72% | 8.91% |
| 2015 | -0.47% | 4.00% | -0.18% | 0.61% | 0.67% | -1.71% | 1.06% | -4.87% | -2.48% | 5.25% | 0.27% | -2.08% | -0.33% |
| 2014 | -2.31% | 3.97% | 0.04% | 0.16% | 1.60% | 2.03% | -2.26% | 2.59% | -2.85% | 1.82% | 1.17% | -0.65% | 5.16% |
Expense Ratio
Bill Bernstein No Brainer Portfolio has an expense ratio of 0.04%, 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 No Brainer Portfolio is 43, 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 | |
|---|---|---|---|---|---|
VEA Vanguard FTSE Developed Markets ETF | 0.83 | 1.18 | 1.16 | 0.98 | 2.96 |
VB Vanguard Small-Cap ETF | 0.23 | 0.45 | 1.06 | 0.18 | 0.55 |
BND Vanguard Total Bond Market ETF | 1.10 | 1.60 | 1.19 | 0.47 | 2.79 |
VOO Vanguard S&P 500 ETF | 0.74 | 1.04 | 1.15 | 0.68 | 2.58 |
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Dividends
Dividend yield
Bill Bernstein No Brainer Portfolio provided a 2.33% dividend yield over the last twelve months.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2.33% | 2.39% | 2.31% | 2.20% | 1.90% | 1.74% | 2.26% | 2.47% | 2.11% | 2.27% | 2.27% | 2.44% |
| Portfolio components: | ||||||||||||
VEA Vanguard FTSE Developed Markets ETF | 2.81% | 3.36% | 3.16% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% | 3.68% |
VB Vanguard Small-Cap ETF | 1.48% | 1.30% | 1.55% | 1.59% | 1.24% | 1.14% | 1.39% | 1.67% | 1.35% | 1.50% | 1.48% | 1.43% |
BND Vanguard Total Bond Market ETF | 3.74% | 3.67% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% |
VOO Vanguard S&P 500 ETF | 1.29% | 1.24% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% | 1.85% |
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 No Brainer 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 No Brainer Portfolio was 27.91%, occurring on Mar 23, 2020. Recovery took 99 trading sessions.
The current Bill Bernstein No Brainer Portfolio drawdown is 0.55%.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -27.91% | Feb 13, 2020 | 27 | Mar 23, 2020 | 99 | Aug 12, 2020 | 126 |
| -23.68% | Nov 9, 2021 | 235 | Oct 14, 2022 | 345 | Mar 1, 2024 | 580 |
| -17.46% | May 2, 2011 | 108 | Oct 3, 2011 | 114 | Mar 16, 2012 | 222 |
| -14.96% | Aug 30, 2018 | 80 | Dec 24, 2018 | 75 | Apr 12, 2019 | 155 |
| -13.97% | May 22, 2015 | 183 | Feb 11, 2016 | 117 | Jul 29, 2016 | 300 |
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 4 assets, with an effective number of assets of 4.00, 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 | BND | VEA | VB | VOO | Portfolio | |
|---|---|---|---|---|---|---|
| ^GSPC | 1.00 | -0.10 | 0.82 | 0.88 | 1.00 | 0.94 |
| BND | -0.10 | 1.00 | -0.06 | -0.10 | -0.10 | -0.01 |
| VEA | 0.82 | -0.06 | 1.00 | 0.77 | 0.82 | 0.91 |
| VB | 0.88 | -0.10 | 0.77 | 1.00 | 0.88 | 0.94 |
| VOO | 1.00 | -0.10 | 0.82 | 0.88 | 1.00 | 0.94 |
| Portfolio | 0.94 | -0.01 | 0.91 | 0.94 | 0.94 | 1.00 |
AI Insight on Diversification
The portfolio is moderately diversified with a mix of fixed income and equity positions, but it shows some concentration risk due to high correlations among the equity components. The bond position (BND) exhibits very low or slightly negative correlations with the equity positions (VEA, VB, VOO), which supports diversification by providing a buffer against equity market fluctuations. This low correlation of BND with the rest of the portfolio is a key diversification benefit.
Among the equity positions, VEA (developed international equities), VB (small-cap US equities), and VOO (large-cap US equities) are strongly correlated, with correlations ranging from 0.77 to 0.88. This high correlation suggests these equity holdings tend to move together, reducing the diversification benefit within the equity sleeve. The portfolio’s overall correlation with these equity positions is also very high (0.91 to 0.94), indicating that the portfolio’s performance is largely driven by the equity components.
The bond position has almost zero correlation (-0.01) with the portfolio overall, reflecting its smaller weight or less influence on portfolio returns compared to the equities. This implies that while BND adds diversification, the portfolio is dominated by equity risk factors.
In summary, the portfolio benefits from the inclusion of bonds to reduce overall risk, but the equity portion is relatively concentrated in correlated assets. This concentration limits diversification benefits within equities, making the portfolio more sensitive to broad equity market movements. To improve diversification, the portfolio could consider adding assets with lower correlations to existing equity holdings or increasing the bond allocation.