This is the simplest portfolio William Bernstein discusses in his famous book The Intelligent Asset Allocator. The book is widely recommended not only for this portfolio, but also for its technical and thorough discussion on diversification and portfolio construction in general.
- 25% Large Cap Blend ¹
- 25% Small Cap Blend ¹
- 25% World Total Stock Market ²
- 25% Short Term Bonds
1) Countries other than the United States are modeled with local regional data instead of pure domestic data for these assets. CAN uses USA funds, while GER & UK use EUR funds.
2) The calculations assume that US investors use a World Ex-US fund while investors living in other countries use a World fund including the US.