Golden Ratio
Golden Ratio is a fixed-allocation portfolio reviewed on a annual cadence. Its hypothetical backtest runs through 2026-08-19. BestFolio supplies the public rule or approach and backtest context; current signals, allocations, and paid interactive data remain restricted to Pro access. The recorded 2020-07-13 publication or construction boundary separates pre-publication simulation from later market observations under fixed rules; all returns remain hypothetical. Users review each scheduled signal and place any resulting trades in their own brokerage. BestFolio does not execute trades or provide personalized investment advice.
- Cadence
- Annual
- Backtest data through
- 2026-08-19
- History boundary
- The recorded 2020-07-13 publication or construction boundary separates pre-publication simulation from later market observations under fixed rules; all returns remain hypothetical.
- Rule / approach
- 1. Allocate 21% to VUG (US large-cap growth) 2. Allocate 21% to AVUV (US small-cap value) 3. Allocate 26% to VGLT (Long-Term Treasury) 4. Allocate 16% to GLD (Gold) 5. Allocate 10% to DBMF (Managed Futures) 6. Allocate 6% to BIL (T-Bill…
- BestFolio supplies
- the public rule or approach and backtest context; current signals, allocations, and paid interactive data remain restricted to Pro access
- Customer action
- Review each scheduled signal and place any required trades in your own brokerage; BestFolio does not execute orders.
- Costs and exclusions
- net of a modeled one-way transaction cost (10 bps, scaled up to 3x under stress); taxes, fund-expense drift, or market impact are not modeled
- Freshness
- The latest available backtest ends 2026-08-19. A run timestamp is not exposed here, so no stronger freshness claim is made.
- Next expected action
- First trading day of 2027 (annual); scheduled 2027-01-04 at 09:30 ET. Review the published signal before placing any trade.
Golden Ratio at a glance
Golden Ratio is a fixed-allocation portfolio by Frank Vasquez (Risk Parity Radio) across US Large-Cap Growth, US Small-Cap Value, Long-Term Treasuries, Gold, rebalanced annual. Backtested 1994-12-30 to 2026-08-19 (31.5 years): 9.3% CAGR, 1.13 Sharpe, -21.7% max drawdown, 8.9% volatility.
- Type
- Fixed Allocation
- Author
- Frank Vasquez (Risk Parity Radio)
- Rebalancing
- Annual
- Risk
- Moderate
- Period
- 1994-12-30 to 2026-08-19
- CAGR
- 9.3%
- Sharpe
- 1.13
- Max Drawdown
- -21.7%
- Volatility
- 8.9%
Golden Ratio — Fixed Allocation Portfolio
The Golden Ratio portfolio blends growth equities, value factor, long treasuries, gold, managed futures, and cash using golden ratio proportions. 21% US large-cap growth (VUG), 21% US small-cap value (AVUV), 26% long-term treasuries (VGLT), 16% gold (GLD), 10% managed futures (DBMF), and 6% cash (BIL). Designed for strong risk-adjusted returns through diversification across assets with low or negative correlations.
Golden Ratio: frequently asked questions
- What is Golden Ratio?
- Multi-asset portfolio blending growth equities, value factor, long treasuries, gold, managed futures, and cash. The allocation follows golden ratio proportions across uncorrelated asset classes. Managed futures provide crisis alpha while small-cap value adds a return premium. Since 1992: 9.3% CAGR, -17.3% max DD, 1.18 Sortino.
- Who created the Golden Ratio strategy?
- Golden Ratio was developed by Frank Vasquez (Risk Parity Radio). It is based on Bogleheads Community. Golden Ratio Portfolio.
- What is the historical return and maximum drawdown of Golden Ratio?
- Backtested from 1994-12-30 to 2026-08-19, Golden Ratio returned 9.3% CAGR with a -21.7% maximum drawdown and a Sharpe ratio of 1.13. Past performance does not guarantee future results.
- How often is Golden Ratio rebalanced?
- Golden Ratio is rebalanced annual. BestFolio publishes the updated allocation signal each period.
- Is Golden Ratio a fixed or tactical strategy?
- Golden Ratio is a fixed-allocation (strategic) portfolio: it holds a set allocation and rebalances on schedule rather than rotating based on market signals.
Backtest Performance (1994-12-30 to 2026-08-19)
| Metric | Golden Ratio |
|---|---|
| CAGR | 9.3% |
| Max Drawdown | -21.7% |
| Sharpe | 1.13 |
| Sortino | 1.64 |
| Volatility | 8.9% |
| Calmar | 0.43 |
| Total Return | 1540.9% |
| Backtest Period | 31.5 years |
Strategy Details
- Type
- Fixed / Strategic
- Rebalancing
- annual
- Risk Level
- moderate
- Variants
- 1
- Author
- Frank Vasquez (Risk Parity Radio)
- Source
- Bogleheads Community. Golden Ratio Portfolio
Asset Classes
- US Large-Cap Growth
- US Small-Cap Value
- Long-Term Treasuries
- Gold
- Managed Futures
- Cash/T-Bills
Categories
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