Permanent Strategy
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Permanent Strategy

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A Motif for All Seasons

In the 1970s, Harry Browne pioneered a strategy known as a “permanent portfolio,” which uses inversely correlated asset classes that, together, can perform across varying market conditions. It features an equal allocation of capital to equities, Treasury bills, gold and long-term bonds -- one for each corresponding economic scenario: growth, recession, inflation and deflation. The permanent portfolio strategy that Browne developed has performed well over the past few economic cycles without overexposure to any given asset class. For example, during the economic expansion from January 2005 to December 2007, this asset allocation returned 40.9% compared to 27.4% for the S&P 500. Later, led by its Treasury bills and gold allocation, it gained 1.5% during the Great Recession of 2008-09, while the S&P 500 lost 21.1%. See more
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Invest in Thematic Portfolios
Create your own customizable basket of up to 30 stocks or ETFs for just $9.95.
Motif Index 1 YR Return
Permanent Strategy Benchmark
With this Motif, you can buy the following basket of stocks for just $9.95:
Weight Segment & Stocks Symbol 1 MO / 1 YR Return
25.6% T-bills 0.0%
25.6% iShares Barclays Short Treasury Bond ETF SHV 0.0%
25.5% Long-term Bonds 3.7%
8.8% iShares Barclays 20+ Year Treasury Bond ETF TLT 6.9%
8.6% PowerShares National AMT Free Municipal Bond Portfolio PZA 4.2%
8.1% Vanguard Long-Term Corporate Bond ETF VCLT 0.2%
25.0% Equities 1.7%
8.2% Vanguard Total Stock Market ETF VTI 7.0%
3.7% iShares FTSE/Xinhua China 25 Index Fund FXI 21.6%
3.0% iShares Japan Index Fund EWJ 7.9%
1.5% iShares MSCI Germany Index ETF EWG 8.9%
1.1% iShares France Index Fund EWQ 8.6%
1.0% iShares TR MSCI UTD Kingdom ETF EWU --
0.9% iShares MSCI Italy Index ETF EWI 11.4%
0.8% WisdomTree India Earnings ETF EPI 3.8%
0.7% iShares MSCI Brazil Index ETF EWZ 29.0%
0.7% iShares MSCI Canada Index ETF EWC 15.5%
0.6% Market Vectors Russia ETF RSX 30.4%
0.5% iShares Spain Index Fund EWP 17.5%
0.5% iShares MSCI Australia Index ETF EWA 14.8%
0.5% iShares MSCI Mexico Investable Market Index ETF EWW 14.8%
0.4% iShares MSCI South Korea Index ETF EWY 13.4%
0.4% iShares Netherlands Index Fund EWN 2.1%
0.3% iShares MSCI Turkey Investment Market Index ETF TUR 17.7%
0.2% iShares MCSI South Africa Index Fund ETF EZA 2.6%
23.9% Gold 11.8%
23.9% iShares Gold Trust ETF IAU 11.8%