Permanent Portfolio ETF Plan
Investment Model Portfolios

This plan uses ETFs to mimic the Permanent Portfolio mutual fund PRPFX holdings: GLD, SLV, FXF, IGE, IYR, VTI, LQD, SHY, IEF. See a lazy portfolio Permanent Portfolio ETF Version for static version. 

We take PRPFX's allocaiton based on its recent report. 

Portfolio Structure

Gold  20% Silver    5%

Swiss Franc Assets 10%

U.S. and Foreign Real Estate and Natural Resource Stocks 15%

Aggressive Growth Stocks 15%

U.S. Treasury Bills, Bonds and Other Dollar Assets 35%

The following is the original Harry Browne's permanent portfolio: 

In his Fail-Safe Investing book, Harry Browne proposed this one size fit all portfolio that he called 'permanent portfolio'. His theory has been discussed in numerous articles like this. A mutual fund PRPFX was constucted and named after his theory. The following consists of the portfolio's components.

  • 25% in U.S. stocks, to provide a strong return during times of prosperity. For this portion of the portfolio, Browne recommends a basic S&P 500 index fund such as VFINX.
  • 25% in long-term U.S. Treasury bonds for deflation protection.  
  • 25% in cash in order to hedge against periods of “tight money” or recession. In this case, “cash” means a money-market fund.
  •  25% in precious metals (gold, specifically) in order to provide protection during periods of inflation. Browne recommends gold bullion coins.

We use VFINX, VUSTX, VFITX, VFISX, CASH and GLD for the above components. Investors can compare the model portfolios in this plan with this Harry Browne Permanent Portfolio.

See Long Term Harry Browne's Permanent Portfolio Performance

Plan investment options

Total Available Funds: 9
Asset Class Ticker Description Rating Expense
REAL ESTATE
REAL ESTATE VNQ Vanguard REITs Index ETF 0.12%
Others
Currency FXF CurrencyShares Swiss Franc Trust 0.4%
Natural Resources IGE iShares S&P North Amer Natural Resources 0.41%
COMMODITIES
Commodities Precious Metals GLD SPDR Gold Shares 0.4%
Commodities Precious Metals SLV iShares Silver Trust 0.5%
FIXED INCOME
LONG GOVERNMENT IEF iShares Barclays 7-10 Year Treasury 0.15%
SHORT GOVERNMENT SHY iShares Barclays 1-3 Year Treasury Bond 0.15%
Long-Term Bond LQD iShares iBoxx $ Invest Grade Corp Bond 0.14%
US EQUITY
LARGE BLEND VTI Vanguard Total Stock Market ETF 0.03%
Average Expense Ratio: 0.26%

The following is a moderate-risk model portfolio constructed from the investment options of Permanent Portfolio ETF Plan.

This portfolio is proactively monitored and rebalanced on a monthly basis when needed, ensuring it remains in line with its target allocation. We offer customization features, allowing subscribers to tailor the portfolio to align with their own risk tolerance and return expectations by changing risk profile parameter.

Our model portfolio is rooted in the MyPlanIQ Asset Allocation Composite (AAC) strategy. This dynamic (tactical) asset allocation and quantitative fund selection algorithm prioritize risk management by dynamically adjusting stock allocations based on prevailing asset momentum. Extensive research has shown that this momentum-based tactical approach can potentially reduce temporary losses while maintaining or outperforming traditional buy-and-hold strategies.

Both historical back test and real-time portfolio return and risk data are shown in the table on this page. These metrics are compared with stock and moderate allocation index funds.

Furthermore, subscribers have the option to explore alternative strategies such as Strategic Asset Allocation Optimal (SAA) and Tactical Asset Allocation (TAA) to further customize their model portfolio. See our investment methodology for more details on the investment strategies


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Puzzled on what to invest?

  • We ask a few questions to decide your personal return and risk expectations
  • We build a custom portfolio for your plan (401(k), 403(b), 529 ...) or for a  brokerage account
  • We monitor and send timely rebalance emails on what investment funds to buy and sell
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