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William Bernstein`s `Coward`s` Lazy Portfolio
Investment Model Portfolios

William Bernstein is the author of several books including The Intelligent Asset Allocator and The Four Pillars of Investing. He introduced the Coward's Portfolio in 1996. The "coward" refers not to the investor's risk tolerance but to the strategy of hedging one's bets and having slices of a number of asset classes. This portfolio has extensive global stock coverage. However, he puts all of the fixed income into short term bonds.

The following are the allocations

  • Total Stock Market 15%
  • Large Value 10%
  • Small Blend 5%
  • Small Value 10%
  • Europe Stk 5%
  • Pacific Stk 5%
  • Emerging Mkts 5%
  • REITs 5%
  • Short Term Bond 40%

For more information, refer to BogleHeads Lazy Portfolio.

The above model portfolio should be compared with the moderate model portfolios in this plan.

One can construct an ETF based plan that mostly uses Vanguard ETFs.

Investment options of William Bernstein`s `Coward`s` Lazy Portfolio

Total Available Funds: 9
Asset Class Ticker Description
FIXED INCOME
Short-Term Bond VBISX Vanguard Total Bond Market Index Inv
US EQUITY
SMALL VALUE VISVX Vanguard Small Cap Value Index Inv
LARGE BLEND VFINX Vanguard 500 Index Investor
LARGE VALUE VIVAX Vanguard Value Index Inv
SMALL BLEND NAESX Vanguard Small Cap Index Inv
LARGE VALUE VEIRX Vanguard Equity-Income Adm
REAL ESTATE
REAL ESTATE VGSIX Vanguard REIT Index Inv
INTERNATIONAL EQUITY
DIVERSIFIED PACIFIC/ASIA VPACX Vanguard Total Intl Stock Index Inv
EUROPE STOCK VEURX Vanguard European Stock Index Inv

Investment model portfolios

We provide two types of investment model portfolios for William Bernstein`s `Coward`s` Lazy Portfolio participants. You can customize and follow a model portfolio in your plan account.

Types of portfolio strategies

These portfolios are proactively monitored and rebalanced on a monthly basis when needed, ensuring it remains in line with its target allocation.

Let us know (Email us) if you need help to create a custom model portfolio for your plan.

Example model portfolios

The following provides historical returns for example model portfolios with a moderate risk profile (at most 60% in stocks) and their comparison with benchmark index funds. You can customize these portfolios according to your own risk profile.

Strategic Asset Allocation Model Portfolio

The following portfolio is based on the MyPlanIQ Strategic Asset Allocation (SAA) strategy.

Name YTD Return 1Yr AR 3Yr AR 5Yr AR 10Yr AR 15Yr AR 20Yr AR Inception
William Bernstein`s `Coward`s` Lazy Portfolio Strategic Asset Allocation - Optimal Moderate NA 21.33% 3.50% 6.67% 5.60% 6.71% 5.86% 6.14%
VFINX (VANGUARD 500 INDEX FUND INVESTOR SHARES) NA 37.82% 8.86% 15.20% 12.89% 14.04% 10.46% 8.70%
VSMGX (VANGUARD LIFESTRATEGY MODERATE GROWTH FUND INVESTOR SHARES) NA 22.89% 2.25% 6.63% 6.01% 7.19% 6.10% 5.79%
Data as of 10/31/2024, AR inception is 12/31/2000

Tactical Asset Allocation Model Portfolio

The following portfolio is based on the MyPlanIQ Tactical Asset Allocation (TAA) strategy.

Name YTD Return 1Yr AR 3Yr AR 5Yr AR 10Yr AR 15Yr AR 20Yr AR Inception
William Bernstein`s `Coward`s` Lazy Portfolio Tactical Asset Allocation Moderate NA 13.18% -0.41% 4.72% 4.36% 5.73% 6.08% 6.68%
VFINX (VANGUARD 500 INDEX FUND INVESTOR SHARES) NA 37.82% 8.86% 15.20% 12.89% 14.04% 10.46% 8.70%
VSMGX (VANGUARD LIFESTRATEGY MODERATE GROWTH FUND INVESTOR SHARES) NA 22.89% 2.25% 6.63% 6.01% 7.19% 6.10% 5.79%
Data as of 10/31/2024, AR inception is 12/31/2000