Get this portfolio here: https://optimizedportfolio.com/go/gbp-3

The Golden Butterfly Portfolio is a medium-risk portfolio similar to Ray Dalio’s All Weather Portfolio. Here we’ll look at its components and the best ETF’s to use in its construction.

// TIMESTAMPS:

00:00 - Intro
00:20 - What Is the Golden Butterfly Portfolio?
02:44 - Golden Butterfly Portfolio vs. Permanent Portfolio
03:47 - Golden Butterfly Portfolio vs. All Weather Portfolio
05:19 - Golden Butterfly Portfolio ETF’s for M1 Finance
05:57 - Taking the Golden Butterfly Portfolio International
06:23 - Modified Golden Butterfly Portfolio
07:30 - Leveraged Golden Butterfly Portfolio
09:35 - Disclosure
10:06 - Disclaimer
10:37 - Outro

// PARTIAL TRANSCRIPT:

The Golden Butterfly Portfolio is essentially a modified version of the Permanent Portfolio. It was designed by Tyler of PortfolioCharts.com. Its asset allocation looks like this:
- 20% Total US Stock Market
- 20% US Small Cap Value
- 20% Long-Term Treasury Bonds
- 20% Short-Term Treasury Bonds
- 20% Gold

The only real point of contention in my opinion is the heavy allocation to gold. I’m personally not a big fan of gold. It has a nonnegative correlation to stocks, albeit low/small, is much more volatile than bonds, is not a value-producing asset (i.e. it has a real expected return of zero), and has not been a reliable inflation hedge historically.

I would argue that in a long-term investment portfolio with an investment horizon of 20+ years, holding gold only creates an opportunity cost where you could have held something else in its place. That said, I’ll concede that it may offer a short-term diversification benefit and the metal does seem to reliably hedge against currency devaluation, making for safer withdrawal rates in retirement, so adopting the Golden Butterfly Portfolio may very well be a prudent move at or near retirement, or for a risk-averse investor who wants to cover all bases for all environments to minimize volatility and risk.

► Read the blog post here: https://www.optimizedportfolio.com/go...
► Replacing Commodities with Utilities: https://www.optimizedportfolio.com/al...)
► Golden Butterfly Portfolio Pie: https://optimizedportfolio.com/go/gbp-3
► Global Golden Butterfly Portfolio Pie: https://optimizedportfolio.com/go/gol...
► Modified Golden Butterfly Portfolio Pie: https://optimizedportfolio.com/go/gbp...
► Leveraged Golden Butterfly Portfolio Pie: https://optimizedportfolio.com/go/gol...

#investing #lazyportfolios #stocks #etfs #vanguard #lazyportfolio #stockmarket #leverage #finance

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