Global X launched its “Global X Permanent ETF” trading under the ticker PERM. The ETF sports a .49% expense ratio. The fund fact sheet states “The Global X Permanent ETF seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Permanent Index.”
The Solactive Permanent Index “tracks the performance of four asset class categories that are designed to perform differently across different economic environments, as defined by the index provider. On each rebalance, the Underlying Index allocates 25% each to four asset class categories: Stocks, U.S. Treasury Bonds (Long-Term), U.S. Treasury Bonds (Short-Term), and Gold and Silver.”
In other words, the ETF’s goal is to hold an equal weight of stocks, long-term US Treasuries, short-term US Treasuries, and precious metals. This strategy and allocation is not new, Harry Browne proposed this allocation in his 1998 Fail-Safe Investing: Lifelong Financial Security in 30 Minutes. I found a site/blog which has tracked the historical performance of Browne’s Permanent portfolio strategy (here and here) dating back to 1972 and updated annually.
I will be posting some follow-up analysis on this “permanent” allocation, along with some minor adjustments which may or may not enhance historical returns. However, this will have to wait until after a weekend of ice fishing…