William Bernstein's No Brainer Portfolio Four Funds With Timing

This strategy applies a long term timing rule over each asset in a properly planned lazy asset allocation portfolio. It reduces the overall portfolio risk while still maintaining (or even increasing) the return.

This strateg is based on  William Bernstein Basic No-Brainer Portfolio.   It also employs the diversified timing method proposed by Faber.

The model portfolio

25% US Stocks: VFINX (ETF: SPY)
25% Small Cap Stocks: NAESX (ETF: IWM)
25% International Stocks: VGTSX (ETF: EFA)
25% Bonds : VUSTX (ETF: IEF)

• Diversified Timing On Endowment Asset Allocation Model: another similar lazy portfolio with diversified timing.

See Also

• Mebane T. Faber, "Lazy ETF Portfolios Inspired By The Gurus", seekingalpha.com, Feb. 15, 2007.
• Mebane T. Faber, "A Quantitative Approach to Tactical Asset Allocation", Journal of Wealth Management, Spring 2007.