Risk Parity Radio Episode 8: Portfolio Reviews As Of August 14, 2020 And An Explication Of The Accelerated Permanent Portfolio
Aug 16, 2020
Dive into the latest portfolio performance reviews that reveal exciting insights! Explore the concept of the Accelerated Permanent Portfolio and its innovative four ETF components. Discover how it was adapted from Harry Browne's original strategy to enhance returns. Frank shares compelling comparisons of performance metrics against the Total Stock Market, showcasing the potential for a 50% boost with reduced risk. Plus, learn about balancing leverage and volatility for optimal returns. Don’t miss the intriguing take on projected withdrawal strategies!
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Modern Twist On The Permanent Portfolio
- Frank Vasquez created the Accelerated Permanent Portfolio by modernizing Harry Browne's Permanent Portfolio with leveraged ETFs and preferred shares.
- The result aims to keep balanced behavior while increasing expected returns through leverage and income.
Leveraged ETFs Plus Income And Gold
- The portfolio uses UPRO (3x S&P 500) and TMF (3x long-term Treasuries) alongside GLDM (gold) and PFF (preferred shares).
- Frank balances allocations to offset individual ETF volatility while preserving exposure to stocks, bonds, gold, and income.
FinCon Sparked The Idea
- Frank recounts meeting Matthias Richter at FinCon where the idea to test leveraged ETFs in a risk-parity context arose.
- That conversation inspired him to design a portfolio balancing leveraged equity and bond ETFs with gold and preferred shares.