Golden Butterfly Portfolio

Equal allocation across five asset classes for all-weather stability.

Allocation Breakdown

5 Assets
US Total Stock Market
US Small-Cap Value
Long-Term Bonds
Short-Term Bonds
Gold

Target Allocation

Asset Class Weight Example Ticker
US Total Stock Market
20% VTI
US Small-Cap Value
20% VBR
Long-Term Bonds
20% TLT
Short-Term Bonds
20% SHY
Gold
20% GLD

Risk Level

Low to Moderate

Rebalance Frequency

Annually

Advantages

  • Very low maximum drawdown
  • Equal-weight simplicity
  • All-weather protection
  • Small-cap value tilt for growth

Disadvantages

  • US-only equities
  • Heavy gold allocation controversial
  • May lag in strong bull markets
  • Requires 5 funds to implement

About This Portfolio

The Golden Butterfly divides equally across five uncorrelated asset classes, aiming for stability across all economic conditions. The small-cap value tilt provides a growth kicker, while gold and bonds protect against different types of economic stress.

Historical Context

The Golden Butterfly was developed by Tyler of PortfolioCharts.com as an improvement on Harry Browne's Permanent Portfolio. It adds small-cap value stocks for additional returns while maintaining the equal-weight simplicity.

Who It's For

Investors seeking stability with reasonable returns across all economic environments. Those who want a simple, equal-weight approach.

Build This Portfolio Free

Create your account and start tracking the Golden Butterfly Portfolio with real-time analytics.

Get Started Free