Golden Butterfly
StaticFreemoderateRobustness 1.00Based on research by Tyler (Portfolio Charts) · Tyler. The Golden Butterfly Portfolio. Portfolio Charts
This is BestFolio's independent implementation. Not affiliated with or endorsed by the original author.
Launched Apr 18, 2016About this Strategy
The Golden Butterfly portfolio was created by Tyler at Portfolio Charts as an evolution of Harry Browne's Permanent Portfolio. It keeps the four pillars but replaces 20% of the broad stock allocation with small-cap value, adding a factor premium backed by the Fama-French size and value research. Five equal 20% slices: SPY, IWN (small-cap value), TLT, SHY, and GLD.
Strategy Rules
- 1Allocate 20% to SPY (S&P 500)
- 2Allocate 20% to IWN (Russell 2000 Value)
- 3Allocate 20% to TLT (20+ Year Treasury Bonds)
- 4Allocate 20% to SHY (1-3 Year Treasury Bonds)
- 5Allocate 20% to GLD (Gold)
- 6Rebalance annually or when drift exceeds threshold
Asset Universe
5 instruments this strategy can hold
Key Differentiators
Research Source
Based on research by Tyler (Portfolio Charts)
Tyler. The Golden Butterfly Portfolio. Portfolio Charts
Read original paper →Strategy Info
- Type
- Fixed / Strategic
- Frequency
- annual
- Next Rebalance
- Jan 409:30 ET (184d)
- Variants
- 1
- Risk Category
- moderate
- Regime
- Static
- Signal Date
- 2026-07-02
- Tags
- static, all-weather
- Type
- Fixed/Strategic Asset Allocation
- Trading Frequency
- Annual or on-drift rebalancing
- Number Of Holdings
- 5 ETFs
- Equity Allocation
- 40% (20% large-cap + 20% small-cap value)
- Bond Allocation
- 40% (20% long-term + 20% short-term)
- Gold Allocation
- 20%
- Philosophy
- Equal-weight all-weather with value factor tilt
- Risk Level
- Moderate
Asset Classes
Golden Butterfly at a glance
Golden Butterfly is a fixed-allocation portfolio by Tyler (Portfolio Charts) across US Equity, US Small-Cap Value, Long-Term Treasuries, Short-Term Treasuries, rebalanced annual. Backtested 1987-12-31 to 2026-07-03 (38.5 years): 8.3% CAGR, 1.13 Sharpe, -19.9% max drawdown, 7.9% volatility.
- Type
- Fixed Allocation
- Author
- Tyler (Portfolio Charts)
- Rebalancing
- Annual
- Risk
- Moderate
- Period
- 1987-12-31 to 2026-07-03
- CAGR
- 8.3%
- Sharpe
- 1.13
- Max Drawdown
- -19.9%
- Volatility
- 7.9%
Golden Butterfly — Fixed Allocation Portfolio
The Golden Butterfly portfolio was created by Tyler at Portfolio Charts as an evolution of Harry Browne's Permanent Portfolio. It keeps the four pillars but replaces 20% of the broad stock allocation with small-cap value, adding a factor premium backed by the Fama-French size and value research. Five equal 20% slices: SPY, IWN (small-cap value), TLT, SHY, and GLD.
Golden Butterfly: frequently asked questions
- What is Golden Butterfly?
- Five equal 20% slices: total market, small-cap value, long bonds, short bonds, and gold. Exceptional risk-adjusted returns.
- Who created the Golden Butterfly strategy?
- Golden Butterfly was developed by Tyler (Portfolio Charts). It is based on Tyler. The Golden Butterfly Portfolio. Portfolio Charts.
- What is the historical return and maximum drawdown of Golden Butterfly?
- Backtested from 1987-12-31 to 2026-07-03, Golden Butterfly returned 8.3% CAGR with a -19.9% maximum drawdown and a Sharpe ratio of 1.13. Past performance does not guarantee future results.
- How often is Golden Butterfly rebalanced?
- Golden Butterfly is rebalanced annual. BestFolio publishes the updated allocation signal each period.
- Is Golden Butterfly a fixed or tactical strategy?
- Golden Butterfly is a fixed-allocation (strategic) portfolio: it holds a set allocation and rebalances on schedule rather than rotating based on market signals.
Backtest Performance (1987-12-31 to 2026-07-03)
| Metric | Golden Butterfly |
|---|---|
| Compound Annual Growth Rate (CAGR) | 8.3% |
| Maximum Drawdown | -19.9% |
| Sharpe Ratio | 1.13 |
| Sortino Ratio | 1.53 |
| Annualized Volatility | 7.9% |
| Calmar Ratio | 0.42 |
| Total Return | 2085.4% |
| Backtest Period | 38.5 years |
Strategy Details
- Type
- Fixed / Strategic
- Rebalancing
- annual
- Risk Level
- moderate
- Variants
- 1
- Author
- Tyler (Portfolio Charts)
- Source
- Tyler. The Golden Butterfly Portfolio. Portfolio Charts
Asset Classes
- US Equity
- US Small-Cap Value
- Long-Term Treasuries
- Short-Term Treasuries
- Gold
Categories
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