Select Page

William Bernstein Sheltered Sam 70/30 Allocation
0.07%June 04 | MyPlanIQ portfolio symbol P_78988

  • Portfolio Overview
  • Asset Allocation and ETFs
  • Performance
  • Calculators
  • Rolling Returns
  • Drawdowns

Portfolio Overview


1. Background and Philosophy

The William Bernstein Sheltered Sam 70/30 Allocation is a lazy portfolio designed by Dr. William Bernstein, a neurologist-turned-financial theorist and author of influential investing books like The Intelligent Asset Allocator and The Four Pillars of Investing. Bernstein advocates for low-cost, passive indexing and emphasizes diversification across asset classes to mitigate risk while achieving long-term growth. His "Sheltered Sam" portfolios are tailored for tax-advantaged accounts (e.g., IRAs, 401(k)s) and prioritize simplicity and efficiency.

This portfolio follows a 70% stocks / 30% bonds allocation, targeting investors with a moderate risk tolerance. Bernstein's philosophy centers on global diversification, value tilting (to capture the "value premium"), and inflation protection through bonds like TIP.

2. Asset Allocation Analysis

Diversification: The portfolio is highly diversified across:

  • U.S. equities (45.5%): Large-cap (VV, VTV), small-cap value (IJS, IJR), and REITs (VNQ).
  • International equities (21%): Developed (EFV, VGK, VPL) and emerging markets (EEM).
  • Bonds (30%): Short-term Treasuries (SHY) and inflation-protected securities (TIP).
  • Commodities (2.1%): Broad exposure via GLTR.

Risk Level: Moderate (70/30 split). The value tilt and international exposure add volatility but may enhance long-term returns. Bonds provide stability.

Pros:

  • Low-cost ETFs minimize expenses.
  • Global diversification reduces concentration risk.
  • Inflation protection via TIP and commodities.

Cons:

  • Complexity with 12 holdings may deter beginners.
  • Value stocks can underperform in growth-dominated markets.
  • Commodities (GLTR) are volatile and may not be accessible in 401(k)s.

3. Practical Application in Retirement Accounts

For 401(k) Investors:

  1. Match ETFs to available funds: Look for index funds with similar exposures (e.g., an S&P 500 fund for VV, a small-cap value fund for IJS).
  2. Substitute unavailable holdings: If a fund like EFV (international value) isn't available, use a broad international stock fund instead.
  3. Commodities workaround: Allocate the 2.1% from GLTR to equities or bonds if no commodity option exists.

For IRA Investors: Replicate the portfolio exactly using the specified ETFs, as IRAs offer broader investment choices.

Rebalancing: Adjust holdings annually to maintain the target allocation (e.g., 70/30 stocks/bonds).

Click here for more portfolio details and features ►

Asset Allocation


Symbol Category/Sector Target Weight
VTV
Vanguard Value ETF 		US Equity 17.5%
VV
Vanguard Large-Cap ETF 		US Equity 14%
IJS
iShares S&P Small-Cap 600 Value ETF 		US Equity 10.5%
VNQ
Vanguard Real Estate ETF 		Real Estate 7%
EFV
iShares MSCI EAFE Value ETF 		International Equity 4.9%
EEM
iShares MSCI Emerging Markets ETF 		International Equity 3.5%
IJR
iShares Core S&P Small Cap ETF 		US Equity 3.5%
VGK
Vanguard FTSE Europe ETF 		International Equity 3.5%
VPL
Vanguard FTSE Pacific ETF 		International Equity 3.5%
SHY
iShares 1-3 Year Treasury Bond ETF 		Fixed Income 18%
TIP
iShares TIPS Bond ETF 		Fixed Income 12%
GLTR
abrdn Physical Precious Metals Basket Shares ETF 		Commodities 2.1%


Historical Performance


William Bernstein Sheltered Sam 70/30 Allocation Historical Returns

Name YTD Return 1Yr AR 3Yr AR 5Yr AR 10Yr AR 15Yr AR 20Yr AR Inception
William Bernstein Sheltered Sam 70/30 Allocation 3.11% 9.28% 6.79% 8.74% 6.96% NA NA 7.91%
VFINX (VANGUARD 500 INDEX FUND INVESTOR SHARES) 2.03% 14.20% 14.72% 15.60% 12.92% 14.19% 10.37% 14.34%
VSMGX (VANGUARD LIFESTRATEGY MODERATE GROWTH FUND INVESTOR SHARES) 5.23% 10.75% 8.37% 7.42% 6.31% 7.36% 6.07% 7.12%
Data as of 06/04/2025, AR inception is 10/25/2010

Calculate Performance

Start date (MM/dd/yyyy)

End date   (MM/dd/yyyy)

William Bernstein Sheltered Sam 70/30 Allocation Historical Return Chart


Calculators


Dollar Cost Average Calculator for William Bernstein Sheltered Sam 70/30 Allocation

Starting Amount:
Investment Length (years):
Investment Symbol:
Regular Investment Amount ($):
DCA Frequency:
Share on

Retirement Spending Calculator for William Bernstein Sheltered Sam 70/30 Allocation

Starting Amount:
Period (Years):
Investment Portfolio or Fund:
Withdrawal Rate (%) :
%
Withdrawal Frequency:
Share on

Rolling Returns


From 10/25/2010 to 06/04/2025, the worst annualized return of 3-year rolling returns for William Bernstein Sheltered Sam 70/30 Allocation is 0.58%.
From 10/25/2010 to 06/04/2025, the worst annualized return of 5-year rolling returns for William Bernstein Sheltered Sam 70/30 Allocation is 2.46%.
From 10/25/2010 to 06/04/2025, the worst annualized return of 10-year rolling returns for William Bernstein Sheltered Sam 70/30 Allocation is 5.51%.

Maximum Drawdown

William Bernstein Sheltered Sam 70/30 Allocation Maximum Drawdown