The Golden Butterfly Portfolio by Tyler prioritizes consistently desirable investment growth by balancing economic conditions with an eye towards prosperity.

Asset Allocation

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Author

Tyler

I’m a mechanical engineer, investing researcher, spreadsheet aficionado, and the author of Portfolio Charts. The Golden Butterfly is a portfolio idea born of my ongoing exploration.

Overview

The Golden Butterfly Portfolio is built on the idea of economic risk parity, similar to the Permanent Portfolio which shares four of its five assets. But while the Permanent Portfolio equally balances prosperity, recession, inflation, and deflation, the Golden Butterfly tilts the assets towards prosperity with an additional allocation to small cap value.

While to some that may seem like a trendy choice destined to underperform, the data reveals a remarkable truth. The Golden Butterfly is one of the best risk-adjusted portfolios out there, pairing the famous consistency of the Permanent Portfolio and the growth rates of far more aggressive options. With a tight band of growth paths that are helpful for future estimates and notably high withdrawal rates that are great for retirees, it’s a particularly dependable portfolio option suitable for both accumulators and retirees alike.

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Performance

Calculations use localized assets and data for the selected home country.

Comparisons

Calculations use localized assets and data for the selected home country.

Learn more about the metrics on the Portfolio Matrix page.

Alternatives

Portfolios with a similar structure or design intent

Permanent Portfolio — The same fundamental portfolio without small cap value

All Seasons Portfolio — A similar investing philosophy built around economic risk parity

Pinwheel Portfolio — Another original idea designed for portfolio consistency

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Insights that mention the Golden Butterfly Portfolio

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