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William Bernstein Sheltered Sam 40/60 Allocation
0.16%June 04 | MyPlanIQ portfolio symbol P_79045

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

Portfolio Overview


William Bernstein Sheltered Sam 40/60 Allocation: Overview

1. Background and Philosophy

The William Bernstein Sheltered Sam 40/60 Allocation is a lazy portfolio designed by Dr. William Bernstein, a renowned neurologist-turned-financial theorist and author of influential books like The Four Pillars of Investing. Bernstein advocates for low-cost, passive investing with a focus on diversification and risk management. This portfolio is tailored for conservative investors, particularly those in or near retirement, with a 40% equity / 60% fixed-income split. It emphasizes sheltering assets from volatility while maintaining exposure to growth through equities.

2. Asset Allocation Analysis

The portfolio is divided into equities (40%) and bonds (60%), with further diversification across regions and asset classes:

  • U.S. Stocks (30%): VTV (10%, large-cap value), VV (8%, large-cap blend), IJS (6%, small-cap value), IJR (2%, small-cap blend), and VNQ (4%, REITs).
  • International Stocks (10%): EFV (2.8%, developed markets value), EEM (2%, emerging markets), VGK (2%, Europe), and VPL (2%, Asia-Pacific).
  • Bonds (60%): SHY (36%, short-term Treasuries) and TIP (24%, inflation-protected securities).
  • Commodities (1.2%): GLTR (precious metals basket).

Key Characteristics:

  • Diversification: Spread across U.S. and international equities, bonds, and commodities to mitigate risk.
  • Risk Level: Conservative due to the 60% bond allocation, but equities provide growth potential.
  • Pros: Low-cost ETFs, inflation protection (TIP), and reduced volatility.
  • Cons: Lower long-term returns than aggressive portfolios; commodities (GLTR) may underperform.

3. Practical Application in Retirement Accounts

For 401(k) Accounts:

Investors should map the portfolio to their plan's available funds:

  • Match ETFs to 401(k) Options: Look for funds with similar benchmarks (e.g., S&P 500 index funds for VV, short-term bond funds for SHY).
  • Unavailable Holdings: Allocate to broader categories (e.g., replace VGK with an international stock fund).
  • Commodities: If GLTR isn't available, shift the 1.2% to equities or bonds.

For IRA Accounts:

Investors can replicate the portfolio exactly by purchasing the specified ETFs. IRAs offer greater flexibility for niche holdings like GLTR.

Note: Rebalance annually to maintain the target allocations and adjust for changing risk tolerance.

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Asset Allocation


Symbol Category/Sector Target Weight
VTV
Vanguard Value ETF 		US Equity 10%
VV
Vanguard Large-Cap ETF 		US Equity 8%
IJS
iShares S&P Small-Cap 600 Value ETF 		US Equity 6%
VNQ
Vanguard Real Estate ETF 		Real Estate 4%
EFV
iShares MSCI EAFE Value ETF 		International Equity 2.8%
EEM
iShares MSCI Emerging Markets ETF 		International Equity 2%
IJR
iShares Core S&P Small Cap ETF 		US Equity 2%
VGK
Vanguard FTSE Europe ETF 		International Equity 2%
VPL
Vanguard FTSE Pacific ETF 		International Equity 2%
SHY
iShares 1-3 Year Treasury Bond ETF 		Fixed Income 36%
TIP
iShares TIPS Bond ETF 		Fixed Income 24%
GLTR
abrdn Physical Precious Metals Basket Shares ETF 		Commodities 1.2%


Historical Performance


William Bernstein Sheltered Sam 40/60 Allocation Historical Returns

Name YTD Return 1Yr AR 3Yr AR 5Yr AR 10Yr AR 15Yr AR 20Yr AR Inception
William Bernstein Sheltered Sam 40/60 Allocation 2.96% 7.64% 4.87% 5.75% 4.76% NA NA 5.25%
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 40/60 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 40/60 Allocation is 0.98%.
From 10/25/2010 to 06/04/2025, the worst annualized return of 5-year rolling returns for William Bernstein Sheltered Sam 40/60 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 40/60 Allocation is 3.54%.

Maximum Drawdown

William Bernstein Sheltered Sam 40/60 Allocation Maximum Drawdown