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.

Plan investment options

Total Available Funds: 9
Asset Class Ticker Description Rating Expense
REAL ESTATE
REAL ESTATE VGSIX Vanguard REIT Index Inv 0.12%
INTERNATIONAL EQUITY
EUROPE STOCK VEURX Vanguard European Stock Index Inv 0.09%
DIVERSIFIED PACIFIC/ASIA VPACX Vanguard Total Intl Stock Index Inv 0.08%
US EQUITY
SMALL VALUE VISVX Vanguard Small Cap Value Index Inv 0.06%
SMALL BLEND NAESX Vanguard Small Cap Index Inv 0.03%
LARGE BLEND VFINX Vanguard 500 Index Investor 0.14%
LARGE VALUE VIVAX Vanguard Value Index Inv 0.05%
LARGE VALUE VEIRX Vanguard Equity-Income Adm 0.28%
FIXED INCOME
Short-Term Bond VBISX Vanguard Total Bond Market Index Inv 0.07%
Average Expense Ratio: 0.1%

The following is a moderate-risk model portfolio constructed from the investment options of William Bernstein`s `Coward`s` Lazy Portfolio.

This portfolio is proactively monitored and rebalanced on a monthly basis when needed, ensuring it remains in line with its target allocation. We offer customization features, allowing subscribers to tailor the portfolio to align with their own risk tolerance and return expectations by changing risk profile parameter.

Our model portfolio is rooted in the MyPlanIQ Asset Allocation Composite (AAC) strategy. This dynamic (tactical) asset allocation and quantitative fund selection algorithm prioritize risk management by dynamically adjusting stock allocations based on prevailing asset momentum. Extensive research has shown that this momentum-based tactical approach can potentially reduce temporary losses while maintaining or outperforming traditional buy-and-hold strategies.

Both historical back test and real-time portfolio return and risk data are shown in the table on this page. These metrics are compared with stock and moderate allocation index funds.

Furthermore, subscribers have the option to explore alternative strategies such as Strategic Asset Allocation Optimal (SAA) and Tactical Asset Allocation (TAA) to further customize their model portfolio. See our investment methodology for more details on the investment strategies


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Puzzled on what to invest?

  • We ask a few questions to decide your personal return and risk expectations
  • We build a custom portfolio for your plan (401(k), 403(b), 529 ...) or for a  brokerage account
  • We monitor and send timely rebalance emails on what investment funds to buy and sell
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