{"id":3564,"date":"2021-10-14T08:49:29","date_gmt":"2021-10-14T08:49:29","guid":{"rendered":"https:\/\/investwithanedge.com\/?page_id=3564"},"modified":"2021-11-22T12:14:52","modified_gmt":"2021-11-22T12:14:52","slug":"global-x-brings-permanent-portfolio-concept-to-etfs-2","status":"publish","type":"page","link":"https:\/\/investwithanedge.com\/global-x-brings-permanent-portfolio-concept-to-etfs\/","title":{"rendered":"Global X Brings Permanent Portfolio Concept To ETFs"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-3565\" src=\"https:\/\/investwithanedge.com\/wp-content\/uploads\/2021\/10\/Global-X-Brings-Permanent-Portfolio-Concept-To-ETFs.jpg\" alt=\"\" width=\"150\" height=\"150\" \/>Global X introduced the Global X Permanent ETF (PERM) on 2\/8\/12 to provide investors with access to \u201cproper diversification\u201d in a simple, transparent, and cost-efficient single ETF. The fund allocates 25% to each of four asset classes, although some investors may consider it just three as two of the asset classes are U.S. Treasury securities.<\/p>\n<p>Harry Browne, originator of the \u201cpermanent portfolio\u201d concept, founded the Permanent Portfolio (PRPFX) mutual fund in 1982. PRPFX is still in existence today and has a 6.8% annualized return over its 30-year track record, according to the PRPFX fact sheet (pdf). The philosophy of the mutual fund is to invest a fixed target percentage of its assets in six carefully chosen, diverse, non-correlated investment categories.<\/p>\n<p>However, the new ETF from Global X is not an ETF version of PRPFX. Instead, PERM attempts to track the underlying Solactive Permanent Index minus a 0.49% expense ratio. The index research data includes a 35-year backtest indicating an 8.7% annualized return with a standard deviation of 6.1% and a maximum drawdown of 18.1%.<\/p>\n<p>PERM implements its strategy by holding London-listed ETFS Physical Gold ETC (20%) and ETFS Physical Silver ETC (5%) for the 25% precious metals allocation. The 25% stock allocation is accomplished with Vanguard FTSE All World ex-US ETF (VEU) 3.2%, Vanguard Small-Cap ETF (VB) 3.1%, and the remainder in individual large cap stocks. Individual bond holdings make up the two (long term and short term) 25% Treasury allocations.<\/p>\n<p>Additional information is available in the overview, Investment Case (pdf), fact sheet (pdf), and the prospectus (pdf).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Global X introduced the Global X Permanent ETF (PERM) on 2\/8\/12 to provide investors with access to \u201cproper diversification\u201d in a simple, transparent, and cost-efficient single ETF. The fund allocates 25% to each of four asset classes, although some investors may consider it just three as two of the asset classes are U.S. Treasury securities. &hellip;<\/p>\n","protected":false},"author":4,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"acf":[],"_links":{"self":[{"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/pages\/3564"}],"collection":[{"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/comments?post=3564"}],"version-history":[{"count":1,"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/pages\/3564\/revisions"}],"predecessor-version":[{"id":4195,"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/pages\/3564\/revisions\/4195"}],"wp:attachment":[{"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/media?parent=3564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}