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 | Weight |
|---|---|---|
BND Vanguard Total Bond Market ETF | Total Bond Market | 25% |
VEA Vanguard FTSE Developed Markets ETF | Foreign Large Cap Equities | 25% |
VB Vanguard Small-Cap ETF | Small Cap Growth Equities | 25% |
VOO Vanguard S&P 500 ETF | Large Cap Growth Equities | 25% |
Performance
The chart shows the growth of an initial investment of $10,000 in Bill Bernstein No Brainer Portfolio, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends. The portfolio is rebalanced Quarterly
Returns
As of Oct 2, 2023, the Bill Bernstein No Brainer Portfolio returned 5.67% Year-To-Date and 6.57% of annualized return in the last 10 years.
| 1 month | 6 months | Year-To-Date | 1 year | 5 years (annualized) | 10 years (annualized) | |
|---|---|---|---|---|---|---|
| Benchmark | -5.04% | 3.97% | 11.68% | 19.59% | 7.98% | 9.78% |
| Bill Bernstein No Brainer Portfolio | -4.35% | -0.35% | 5.67% | 14.66% | 5.10% | 6.53% |
| Portfolio components: | ||||||
VEA Vanguard FTSE Developed Markets ETF | -3.93% | -2.43% | 6.27% | 24.10% | 3.34% | 4.01% |
VB Vanguard Small-Cap ETF | -6.50% | 0.56% | 4.24% | 12.61% | 4.88% | 7.93% |
BND Vanguard Total Bond Market ETF | -2.01% | -4.42% | -0.90% | 0.73% | 0.18% | 1.09% |
VOO Vanguard S&P 500 ETF | -4.95% | 4.82% | 13.10% | 21.62% | 9.84% | 11.86% |
| Returns over 1 year are annualized | ||||||
Monthly Returns Heatmap
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 1.30% | 0.90% | -1.60% | 4.87% | 2.82% | -2.50% |
Dividend yield
Bill Bernstein No Brainer Portfolio granted a 2.39% dividend yield in the last twelve months.
| TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Bill Bernstein No Brainer Portfolio | 2.39% | 2.23% | 1.98% | 1.84% | 2.45% | 2.76% | 2.41% | 2.65% | 2.71% | 3.00% | 2.68% | 3.29% |
| Portfolio components: | ||||||||||||
VEA Vanguard FTSE Developed Markets ETF | 3.18% | 2.97% | 3.32% | 2.22% | 3.38% | 3.84% | 3.27% | 3.71% | 3.66% | 4.75% | 3.47% | 4.08% |
VB Vanguard Small-Cap ETF | 1.77% | 1.61% | 1.27% | 1.19% | 1.47% | 1.79% | 1.47% | 1.65% | 1.66% | 1.63% | 1.51% | 2.17% |
BND Vanguard Total Bond Market ETF | 3.04% | 2.65% | 2.06% | 2.36% | 2.97% | 3.15% | 2.93% | 2.97% | 3.12% | 3.46% | 3.56% | 4.26% |
VOO Vanguard S&P 500 ETF | 1.59% | 1.71% | 1.28% | 1.61% | 2.00% | 2.23% | 1.97% | 2.27% | 2.42% | 2.18% | 2.20% | 2.66% |
Expense Ratio
The Bill Bernstein No Brainer Portfolio has an expense ratio of 0.04% which is considered to be low. Below you can find the expense ratios of portfolio funds side-by-side and effortlessly compare their relative costs.
Risk-Adjusted Performance
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 | Ulcer Index | |
|---|---|---|---|---|---|
VEA Vanguard FTSE Developed Markets ETF | 1.30 | ||||
VB Vanguard Small-Cap ETF | 0.46 | ||||
BND Vanguard Total Bond Market ETF | -0.00 | ||||
VOO Vanguard S&P 500 ETF | 1.01 |
Asset Correlations Table
| BND | VEA | VB | VOO | |
|---|---|---|---|---|
| BND | 1.00 | -0.11 | -0.15 | -0.15 |
| VEA | -0.11 | 1.00 | 0.78 | 0.83 |
| VB | -0.15 | 0.78 | 1.00 | 0.89 |
| VOO | -0.15 | 0.83 | 0.89 | 1.00 |
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way.
Worst Drawdowns
The table below shows the maximum drawdowns of the Bill Bernstein No Brainer Portfolio. A maximum drawdown is an indicator of risk. It shows a reduction in portfolio value from its maximum due to a series of losing trades.
The maximum drawdown since January 2010 for the Bill Bernstein No Brainer Portfolio is 27.91%, recorded on Mar 23, 2020. It took 99 trading sessions for the portfolio to recover.
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 | — | — | — |
| -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 Chart
The current Bill Bernstein No Brainer Portfolio volatility is 2.55%, representing the average percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.