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William Bernstein Sheltered Sam 50/50 Allocation
0.13%June 04 | MyPlanIQ portfolio symbol P_79031

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

Portfolio Overview


1. Background and Philosophy

The William Bernstein Sheltered Sam 50/50 Allocation is a lazy portfolio designed by Dr. William Bernstein, a renowned neurologist-turned-financial theorist and author of investment classics like The Intelligent Asset Allocator. Bernstein advocates for low-cost, passive indexing and emphasizes diversification across asset classes to mitigate risk. This portfolio reflects his philosophy of balancing equities (50%) and fixed income (50%), with a tilt toward value stocks and inflation-protected bonds to hedge against market volatility and inflation.

2. Asset Allocation Analysis

Diversification: The portfolio spreads investments across U.S. large-cap (VTV, VV), small-cap value (IJS, IJR), international developed (EFV, VGK), emerging markets (EEM, VPL), real estate (VNQ), and bonds (SHY, TIP). It also includes a small allocation to commodities (GLTR) for further diversification.

Risk Level: The 50% fixed-income allocation (mostly short-term Treasuries and TIPS) makes this a moderate-to-conservative portfolio, suitable for retirees or risk-averse investors. The equity side is tilted toward value stocks, which historically outperform growth over long periods but may lag in bull markets.

Pros:

  • Inflation protection via TIP and commodities.
  • Global diversification reduces reliance on U.S. markets.
  • Low-cost ETFs minimize expenses.

Cons:

  • Lower growth potential due to high bond allocation.
  • Complexity with 12 holdings may require rebalancing effort.
  • Value stocks may underperform in certain market cycles.

3. Practical Application in Retirement Accounts

For 401(k) Accounts:

Investors should map the portfolio's ETFs to their 401(k) options as follows:

  • U.S. Large-Cap Value (VTV): Look for a large-cap value index fund (e.g., Vanguard Value Index or equivalent).
  • U.S. Broad Market (VV): Use a S&P 500 or total market index fund.
  • International Stocks (EFV, VGK): Substitute with a developed markets index fund.
  • Emerging Markets (EEM, VPL): Use an emerging markets index fund if available; otherwise, allocate to broader international stocks.
  • Bonds (SHY, TIP): Replace with a short-term Treasury fund and TIPS fund (or a general bond fund if TIPS are unavailable).
  • Commodities (GLTR): Rarely available in 401(k)s; reallocate to stocks or bonds.

For IRA Accounts:

Investors can replicate the portfolio exactly by purchasing the ETFs directly. IRAs offer more flexibility, including access to commodities and sector-specific funds.

Key Tip: If a specific fund is unavailable, prioritize matching the asset class (e.g., replace IJS with another small-cap value fund) or use the closest broad alternative.

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Asset Allocation


Symbol Category/Sector Target Weight
VTV
Vanguard Value ETF 		US Equity 12.5%
VV
Vanguard Large-Cap ETF 		US Equity 10%
IJS
iShares S&P Small-Cap 600 Value ETF 		US Equity 7.5%
VNQ
Vanguard Real Estate ETF 		Real Estate 5%
EFV
iShares MSCI EAFE Value ETF 		International Equity 3.5%
EEM
iShares MSCI Emerging Markets ETF 		International Equity 2.5%
IJR
iShares Core S&P Small Cap ETF 		US Equity 2.5%
VGK
Vanguard FTSE Europe ETF 		International Equity 2.5%
VPL
Vanguard FTSE Pacific ETF 		International Equity 2.5%
SHY
iShares 1-3 Year Treasury Bond ETF 		Fixed Income 30%
TIP
iShares TIPS Bond ETF 		Fixed Income 20%
GLTR
abrdn Physical Precious Metals Basket Shares ETF 		Commodities 1.5%


Historical Performance


William Bernstein Sheltered Sam 50/50 Allocation Historical Returns

Name YTD Return 1Yr AR 3Yr AR 5Yr AR 10Yr AR 15Yr AR 20Yr AR Inception
William Bernstein Sheltered Sam 50/50 Allocation 3.00% 8.22% 5.52% 6.81% 5.45% NA NA 6.10%
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

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William Bernstein Sheltered Sam 50/50 Allocation Historical Return Chart


Calculators


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Rolling Returns


From 10/25/2010 to 06/04/2025, the worst annualized return of 3-year rolling returns for William Bernstein Sheltered Sam 50/50 Allocation is 1.2%.
From 10/25/2010 to 06/04/2025, the worst annualized return of 5-year rolling returns for William Bernstein Sheltered Sam 50/50 Allocation is 2.24%.
From 10/25/2010 to 06/04/2025, the worst annualized return of 10-year rolling returns for William Bernstein Sheltered Sam 50/50 Allocation is 4.14%.

Maximum Drawdown

William Bernstein Sheltered Sam 50/50 Allocation Maximum Drawdown