Build Bogleheads Three Fund Portfolio With ETFs
What is the Three Fund Portfolio? The three-fund portfolio is a lazy portfolio that consists of …
The Permanent Portfolio can be built with 4 ETFs. It is exposed to 25% stocks, 25% bonds, 25% gold, and 25% cash.
Below you can see the historical return of the Permanent Portfolio.
Portfolio data was last updated on 11th of November 2022, 11:40 ET
Name | Year to date | Return in 2021 | 10 year return | CAGR since 1989 (%) | STDEV | Draw Down | Expense ratio | Yield |
---|---|---|---|---|---|---|---|---|
The Permanent Portfolio | -16.4 | 4.24 | 6.09 | 7.15 | 5.87 | -3.15% | 0.14% | 1.18 |
Here is what the table is showing you
Year to date: This shows what the portfolio has returned this year starting from the first trading day of the year.
10 Year return: This shows the compounded annualized growth rate over a ten-year period. The current year is excluded from calculations.
CAGR since 1989: This shows the compounded annualized growth rate since 1989. The current year is excluded from calculations.
Expense ratio: This shows the cost of holding the portfolio if you were to construct the portfolio using the proposed ETFs.
Yield: This is the expected dividend yield of the portfolio.
Please note that past performance is not a guarantee of future returns.
Below you can see the returns of the best portfolios that we have benchmarked.
Here is how you build the Permanent Portfolio with ETFs:
Harry Browne designed his portfolio to do well in almost any market situation. It is easy to understand and implement. The permanentportfolio has 4 asset classes each betting on a particular market climate. It is described in his book Fail-Safe Investingand in The Permanent Portfolio: Harry Browne’s Long-Term Investment Strategy.
The permanent portfolio is made out of 4 asset classes. Each asset class protects against a certain economic climate. The asset classes are:
Go here for a rebalance excel worksheet.
There are two good books on the Permanent Portfolio. One is Harry Browne’sown book “Fail-Safe Investing”
Finding the right portfolio is hard. Maintaining your portfolio is also daunting.
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If you have already committed to a portfolio – good for you! If you need help maintaining the portfolio you will find our rebalance worksheet useful.
Rebalancing your portfolio lowers your risk and may provide higher returns in the long run. It is completely FREE.
You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.
Rebalancing lowers your portfolio risk and can increase your returns.
The Permanent Portfolio is a good investment if you do not like high drawdowns in your portfolio but you still want a good return on your money.
A good average return for a portfolio is 7% or higher. The stock market has risen 10% in the last 80 years.
The best investment for monthly income is a dividend stock portfolio. You can invest in 18-25 stocks of the dividend aristocrats and have a good income at retirement.