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% Europe┬╣
  • 5% Japan┬╣
  • 5% Emerging Markets
  • 40% Short Term Bonds
  • 5% REITs


  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.


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