TAA.For The Masses
Strategy Library
Static benchmarksby William Bernstein

No Brainer

Four equal quarters, from The Intelligent Asset Allocator.

Holding now

Signal from Dec 2025 close
  • SPY25%
  • IWM25%
  • EFA25%
  • BND25%
  • SPYS&P 50025.0%
  • IWMUS Small Cap25.0%
  • EFAIntl Developed (EAFE)25.0%
  • BNDUS Aggregate Bonds25.0%

Trailing returns

Through Sep 25, 2026 · 3Y+ annualised

1M

-1.7%

YTD

+9.7%

1Y

+12.7%

3Y

+16.3%

5Y

+7.6%

10Y

+9.1%

Growth of $100

Backtest from Aug 1, 2002 to Sep 25, 2026 (24.0 years)

No Brainer+586%
60/40+598%
S&P 500+1206%

Growth of $100, rebased to the start of the selected range. Month-end prices, dividends reinvested, no taxes or trading costs.

Risk & return, full backtest

CAGR

+8.5%

Volatility

14.5%

Max drawdown

-44.9%

Sharpe

0.52

Sortino

0.73

Calmar

0.19

Best year

+29.4%

Worst year

-26.3%

Drawdowns

Percent below the prior peak, vs the S&P 500

Calendar-year returns

Faded bars are partial years · 66% of months positive

Strategy Lab

Stress-test the implementation: trade on the signal day's close or later, split the portfolio into tranches that rebalance on different days (reduces timing luck), or swap a fund for a same-asset-class alternative.

The idea

Bernstein's starter portfolio: equal parts large US stocks, small US stocks, foreign developed stocks and bonds.

The rules

  1. 125% S&P 500, 25% US small cap, 25% EAFE, 25% aggregate bonds.
  2. 2Rebalance annually.

Funds used

  • BND US Aggregate Bonds
  • EFA Intl Developed (EAFE)
  • IWM US Small Cap
  • SPY S&P 500

Early history uses proxy funds: AGG, IEF, SHY.

Recent allocations

Decided at each month-end, held the following month

  • Dec 2025
  • Dec 2024
  • Dec 2023
  • Dec 2022
  • Dec 2021
  • Dec 2020
  • Dec 2019
  • Dec 2018
  • Dec 2017
  • Dec 2016
  • Dec 2015
  • Dec 2014

More static benchmarks