8 Portfolio Recipes That Beat The Permanent Portfolio

Published: January 26, 2017

Summary

 

The Permanent Portfolio is an approach to creating a diversified portfolio using a static asset allocation.

 

This approach to investing has been implemented by a mutual fund and an exchange-traded fund.

 

We examine risks and benefits of this approach and evaluate other asset allocation methods that produce better results with less risk.

 

We identify 8 portfolio recipes which outperform the Permanent Portfolio on the basis of both lower risk and higher return.

 

These include 3 tactical ETF portfolios, 2 static ETF portfolios, and 3 mutual funds.

 

"It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for."

- Robert Kiyosaki

 

The idea of a "Permanent Portfolio" may tempt some investors. The premise is simple: invest in a carefully chosen collection of non-correlated assets and occasionally rebalance. It's easy, but how does it perform? And what are the risks?


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