Coward’s Portfolio

The Coward’s Portfolio — also known as the Smart Money Portfolio — is recommended by William Bernstein for investors looking to expand on simpler alternatives like his No-Brainer Portfolio and compete with institutional strategies but with drastically lower fees.

Asset Allocation

  • 15% Large Cap Blend
  • 10% Large Cap Value
  • 5% Small Cap Blend
  • 10% Small Cap Value
  • 5% Europe¹
  • 5% Japan¹
  • 5% Emerging Markets
  • 40% Short Term Bonds
  • 5% REITs

Notes

  1. Bernstein specifically recommends 5% Europe and 5% Pacific. I used Japan as a substitute for Pacific, and following his diversification theme I included the United States in the 10% developed allocation for investors outside of the US. But be sure to read Bernstein’s explanation for why he invests the way he does.

Performance

Change the home country to translate the portfolio to local assets, currency, and inflation