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William Bernstein Sheltered Sam 20/80 Allocation
0.21%June 04 | MyPlanIQ portfolio symbol P_79061

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

Portfolio Overview


Overview of the William Bernstein Sheltered Sam 20/80 Allocation

1. Background and Philosophy

The William Bernstein Sheltered Sam 20/80 Allocation is a lazy portfolio designed by Dr. William Bernstein, a renowned neurologist-turned-financial theorist and author of books like "The Intelligent Asset Allocator" and "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 retirees or those nearing retirement, with a 20% allocation to equities and 80% to bonds, emphasizing capital preservation while providing modest growth.

2. Asset Allocation Analysis

The portfolio is structured as follows:

  • Equities (20%): Diversified across U.S. (VTV, VV, IJS, IJR), international (EFV, VGK, VPL), and emerging markets (EEM).
  • Bonds (80%): Primarily SHY (short-term Treasuries) and TIP (TIPS) for inflation protection.
  • Commodities (0.6%): A small allocation to GLTR for diversification.

Diversification

The portfolio achieves broad diversification across asset classes (stocks, bonds, commodities), geographies (U.S., developed, and emerging markets), and factors (value, small-cap). However, the equity portion is heavily tilted toward U.S. large-cap (VTV, VV), which may limit exposure to higher-growth opportunities.

Risk Level

With 80% in bonds, this is a low-risk portfolio suitable for retirees or risk-averse investors. The bond-heavy allocation reduces volatility but may lag in high-inflation environments despite the inclusion of TIP.

Pros and Cons

Pros:

  • Capital preservation: Ideal for retirees needing stability.
  • Inflation protection: TIPS and commodities hedge against inflation.
  • Low-cost: Uses index ETFs with minimal fees.

Cons:

  • Limited growth potential: Low equity exposure may underperform in bull markets.
  • Complexity: Multiple equity ETFs may be hard to replicate in 401(k)s.

3. Practical Application in Retirement Accounts

For 401(k) Accounts

To replicate this portfolio in a 401(k):

  1. Identify equivalent funds:
    • U.S. large-cap: Use an S&P 500 or total market fund for VTV/VV.
    • International: Use a developed markets fund for EFV/VGK/VPL.
    • Bonds: Use a short-term Treasury fund for SHY and a TIPS fund for TIP.
  2. Substitute unavailable holdings:
    • If IJS or IJR are unavailable, allocate to a U.S. small-cap fund.
    • If EEM is missing, use an emerging markets fund.
    • Commodities (GLTR) are rarely available; reallocate to equities or bonds.

For IRA Accounts

IRAs offer more flexibility. Investors can directly purchase the ETFs listed or use mutual fund equivalents (e.g., Vanguard index funds). Rebalance annually to maintain the 20/80 allocation.

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Asset Allocation


Symbol Category/Sector Target Weight
VTV
Vanguard Value ETF 		US Equity 5%
VV
Vanguard Large-Cap ETF 		US Equity 4%
IJS
iShares S&P Small-Cap 600 Value ETF 		US Equity 3%
VNQ
Vanguard Real Estate ETF 		Real Estate 2%
EFV
iShares MSCI EAFE Value ETF 		International Equity 1.4%
EEM
iShares MSCI Emerging Markets ETF 		International Equity 1%
IJR
iShares Core S&P Small Cap ETF 		US Equity 1%
VGK
Vanguard FTSE Europe ETF 		International Equity 1%
VPL
Vanguard FTSE Pacific ETF 		International Equity 1%
SHY
iShares 1-3 Year Treasury Bond ETF 		Fixed Income 48%
TIP
iShares TIPS Bond ETF 		Fixed Income 32%
GLTR
abrdn Physical Precious Metals Basket Shares ETF 		Commodities 0.6%


Historical Performance


William Bernstein Sheltered Sam 20/80 Allocation Historical Returns

Name YTD Return 1Yr AR 3Yr AR 5Yr AR 10Yr AR 15Yr AR 20Yr AR Inception
William Bernstein Sheltered Sam 20/80 Allocation 2.87% 6.42% 3.54% 3.58% 3.34% NA NA 3.51%
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 20/80 Allocation Historical Return Chart


Calculators


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Retirement Spending Calculator for William Bernstein Sheltered Sam 20/80 Allocation

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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 20/80 Allocation is 0.12%.
From 10/25/2010 to 06/04/2025, the worst annualized return of 5-year rolling returns for William Bernstein Sheltered Sam 20/80 Allocation is 1.91%.
From 10/25/2010 to 06/04/2025, the worst annualized return of 10-year rolling returns for William Bernstein Sheltered Sam 20/80 Allocation is 2.26%.

Maximum Drawdown

William Bernstein Sheltered Sam 20/80 Allocation Maximum Drawdown