Build Marc Faber’s Portfolio With ETFs

What is Marc Faber’s portfolio?

Marc Faber’s portfolio is exposed to 50% stocks, 25% bonds, and also includes gold. It can be built with 6 ETFs. The portfolio is a medium-risk portfolio.

Article contents

  • 13.00% US Large Cap (VV)
  • 25.00% REITs (VNQ)
  • 8.00% International Developed Blend (VEA)
  • 4.00% Emerging Markets (VWO)
  • 25.00% Total US Bond Market (BND)
  • 25.00% Gold (IAU)

What is the historical return of Marc Faber’s portfolio?

You can see the historical return of Marc Faber’s portfolio below.

Portfolio data was last updated on 11th of November 2022, 11:40 ET

NameYear to dateReturn in 202110 year returnCAGR since 1989 (%)STDEVDraw DownExpense ratioYield
The Marc Faber Portfolio-19.6413.397.488.289.06-16.81%0.11%1.93
Performance for Marc Faber’s portfolio

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.

How does Marc Faber’s portfolio compare to the best portfolios?

Below you can see the returns of the best portfolios that we have benchmarked.

NameSee PortfolioYear to dateReturn in 202110 year returnCAGR since 1989 (%)Draw Down
Premium PortfolioPremium-20.9732.1413.211.81-35.43%
Premium PortfolioPremium-18.728.7816.5211.28-37.63%
Premium PortfolioPremium-19.6425.6716.2911.25-37.00%
Premium PortfolioPremium-23.9913.4911.0311.21-44.87%
Premium PortfolioPremium-12.028.1714.4711.14-35.26%
Premium PortfolioPremium-14.924.7511.8510.99-36.46%
Premium PortfolioPremium-14.7929.0213.1510.99-40.85%
Premium PortfolioPremium-20.620.711.4510.93-37.91%
Premium PortfolioPremium-15.1224.5111.8710.88-36.35%
Premium PortfolioPremium-19.3822.9214.9910.85-32.77%
The 10 Best Performing Portfolios That We Have Benchmarked

Who is Marc Faber?

Marc Faber is the legendary permabear and author of the Gloom Boom & Doom Report.

He is credited for advising his clients to exit their positions before the 1987 stock crash.

His specialty is emerging markets and frontier markets.

Marc Faber is also a gold bug, despite his protestations. He has, on many occasions hailed gold as a sound investment and has multiple times said that gold is his largest holding.

“When people talk about people who are optimistic about gold, they call them ‘gold bugs.’ A bug is an insect. I don’t call equity bugs ‘cockroaches.’ Do you understand? There is already a negative connotation with the expression of ‘gold bug.’”

– Marc Faber

Marc Faber is a permabear, which means he always remains skeptical of the market. He always fears the next downtown. The permabear mentality can hurt your investment returns because you can get so scared that you will refrain from taking any significant risk. But you need to take risks if you want returns. Risk and return are joined at the hip.

Why is Marc Faber called Dr. Doom?

Marc Faber is known as Dr. Doom because of his perma negative market sentiment. This is called being a perma-bear.

 

His sentiment is excellently presented in his book Tomorrow’s Gold, Asia’s age of discovery. In that book, he tackles market cycles and focuses to a large degree on the downswings instead of concentrating on the upswings.

Description of the Marc Faber portfolio

Marc Faber’s trepidation of the market shows in his investment portfolio. The model portfolio comes from Meb Faber (no relation) and his book Global Asset Allocation: A Survey of the World’s Top Asset Allocation Strategies.

Marc Faber’s portfolio is tilted heavily towards real assets. Real assets cover real estate, commodities, precious metals, timber, and farmland.

It denotes that there are tangible physical things behind your investment. I would argue that an investment in Apple is very much an investment in real stuff as well.

50% of Marc Faber’s portfolio is in real assets, gold, and REITs. 25% is in bonds.

It is very much like the Permanent Portfolio by Harry Browne.

Marc Faber’s portfolio is conservative.

 

Resources for the portfolio

The Gloom Boom & Doom Report website.

Here is Marc Faber’s book Tomorrow’s Gold, Asia’s age of discovery. I don’t recommend it as it won’t help you to invest better. There are much better books that will do that.

Suggestions for your next steps

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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.

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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.