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Bill Bernstein No Brainer Portfolio

Last updated Feb 21, 2024

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


BND 25%VEA 25%VB 25%VOO 25%BondBondEquityEquity
PositionCategory/SectorWeight
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


-5.00%0.00%5.00%10.00%15.00%SeptemberOctoberNovemberDecember2024February
9.82%
13.40%
Bill Bernstein No Brainer Portfolio
Benchmark (^GSPC)
Portfolio components

The earliest data available for this chart is Sep 9, 2010, corresponding to the inception date of VOO

Returns

As of Feb 21, 2024, the Bill Bernstein No Brainer Portfolio returned 1.00% Year-To-Date and 7.05% of annualized return in the last 10 years.


Year-To-Date1 month6 months1 year5 years (annualized)10 years (annualized)
^GSPC
N/AN/AN/AN/AN/AN/A
Bill Bernstein No Brainer Portfolio1.00%2.19%9.82%10.88%7.86%7.05%
VEA
Vanguard FTSE Developed Markets ETF
0.69%3.10%10.13%10.11%6.65%4.64%
VB
Vanguard Small-Cap ETF
0.50%3.22%11.07%7.56%8.40%8.36%
BND
Vanguard Total Bond Market ETF
-1.70%-0.51%3.83%2.61%0.49%1.41%
VOO
Vanguard S&P 500 ETF
4.51%2.98%14.29%23.95%14.31%12.56%

Monthly Returns Heatmap


JanFebMarAprMayJunJulAugSepOctNovDec
2024-0.58%
20232.82%-2.50%-4.16%-3.23%7.91%5.99%

Sharpe Ratio

The current Bill Bernstein No Brainer Portfolio Sharpe ratio is 1.00. A Sharpe ratio greater than 1.0 is considered acceptable.

-1.000.001.002.003.004.001.00

The Sharpe ratio of Bill Bernstein No Brainer Portfolio is in the bottom 25%, suggesting that this portfolio isn't performing as well in terms of risk-adjusted returns compared to many others. This could be due to lower returns, higher volatility, or both. It might be an indication that the portfolio needs fine-tuning.


Rolling 12-month Sharpe Ratio0.000.501.001.502.00SeptemberOctoberNovemberDecember2024February
1.00
1.75
Bill Bernstein No Brainer Portfolio
Benchmark (^GSPC)
Portfolio components

Dividend yield

Bill Bernstein No Brainer Portfolio granted a 2.32% dividend yield in the last twelve months.


TTM20232022202120202019201820172016201520142013
Bill Bernstein No Brainer Portfolio2.32%2.31%2.20%1.90%1.74%2.26%2.47%2.11%2.27%2.27%2.44%2.13%
VEA
Vanguard FTSE Developed Markets ETF
3.13%3.15%2.91%3.16%2.04%3.04%3.35%2.77%3.05%2.92%3.68%2.60%
VB
Vanguard Small-Cap ETF
1.55%1.55%1.59%1.24%1.14%1.39%1.67%1.35%1.50%1.48%1.43%1.31%
BND
Vanguard Total Bond Market ETF
3.20%3.09%2.60%1.97%2.22%2.72%2.81%2.54%2.51%2.57%2.79%2.78%
VOO
Vanguard S&P 500 ETF
1.39%1.46%1.69%1.25%1.54%1.88%2.06%1.78%2.02%2.10%1.85%1.84%

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.


0.05%
0.00%2.15%
0.05%
0.00%2.15%
0.03%
0.00%2.15%
0.03%
0.00%2.15%

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 ratioSortino ratioOmega ratioCalmar ratioUlcer Index
VEA
Vanguard FTSE Developed Markets ETF
0.75
VB
Vanguard Small-Cap ETF
0.40
BND
Vanguard Total Bond Market ETF
0.39
VOO
Vanguard S&P 500 ETF
1.91

Asset Correlations Table

The table below displays the correlation coefficients between the individual components of the portfolio, the entire portfolio, and the chosen benchmark.

BNDVEAVBVOO
BND1.00-0.10-0.13-0.13
VEA-0.101.000.780.83
VB-0.130.781.000.88
VOO-0.130.830.881.00

Drawdowns Chart

The Drawdowns chart displays portfolio losses from any high point along the way.


-15.00%-10.00%-5.00%0.00%SeptemberOctoberNovemberDecember2024February
-2.09%
-1.08%
Bill Bernstein No Brainer Portfolio
Benchmark (^GSPC)
Portfolio components

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 2.09%.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-27.91%Feb 13, 202027Mar 23, 202099Aug 12, 2020126
-23.68%Nov 9, 2021235Oct 14, 2022
-17.45%May 2, 2011108Oct 3, 2011114Mar 16, 2012222
-14.96%Aug 30, 201880Dec 24, 201875Apr 12, 2019155
-13.97%May 22, 2015183Feb 11, 2016117Jul 29, 2016300

Volatility Chart

The current Bill Bernstein No Brainer Portfolio volatility is 3.22%, 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.


1.50%2.00%2.50%3.00%3.50%4.00%4.50%5.00%SeptemberOctoberNovemberDecember2024February
3.22%
3.37%
Bill Bernstein No Brainer Portfolio
Benchmark (^GSPC)
Portfolio components
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