Golden Ratio
StaticPromoderateBased on research by Bogleheads Community · Bogleheads Community. Golden Ratio Portfolio
This is BestFolio's independent implementation. Not affiliated with or endorsed by the original author.
Launched Jul 13, 2020About this Strategy
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.
The complete strategy logic, asset universe, and rebalancing rules are available to Pro subscribers. This includes the full methodology description, author notes, and implementation details.
Pro subscribers also get access to current signals, full backtest history, and the ability to blend this strategy into custom portfolios.
Strategy Rules
Pro subscribers only
- 1Allocate 21% to VUG (US large-cap growth)
- 2Allocate 21% to AVUV (US small-cap value)
- 3Allocate 26% to VGLT (Long-Term Treasury)
- 4Allocate 16% to GLD (Gold)
- 5Allocate 10% to DBMF (Managed Futures)
- 6Allocate 6% to BIL (T-Bill cash proxy)
- 7Rebalance annually or when drift exceeds threshold
Key Differentiators
Research Source
Based on research by Bogleheads Community
Bogleheads Community. Golden Ratio Portfolio
Strategy Info
- Type
- Tactical (TAA)
- Frequency
- annual
- Next Rebalance
- Jan 409:30 ET (227d)
- Variants
- 1
- Risk Category
- moderate
- Tags
- multi-asset, diversified
- Type
- Fixed/Strategic Asset Allocation
- Trading Frequency
- Annual or on-drift rebalancing
- Number Of Holdings
- 6 ETFs
- Equity Allocation
- 42% (21% large-cap growth + 21% small-cap value)
- Bond Allocation
- 26% long-term treasuries + 6% cash
- Alternative Allocation
- 26% (16% gold + 10% managed futures)
- Philosophy
- Golden ratio proportions across uncorrelated assets
- Risk Level
- Moderate
Asset Classes
Golden Ratio at a glance
Golden Ratio is a tactical asset allocation (TAA) strategy by Bogleheads Community across US Large-Cap Growth, US Small-Cap Value, Long-Term Treasuries, Gold, rebalanced annual. Backtested 1994-12-30 to 2026-05-20 (31.4 years): 9.9% CAGR, 1.10 Sharpe, -21.7% max drawdown, 8.9% volatility.
- Type
- Tactical (TAA)
- Author
- Bogleheads Community
- Rebalancing
- Annual
- Risk
- Moderate
- Period
- 1994-12-30 to 2026-05-20
- CAGR
- 9.9%
- Sharpe
- 1.10
- Max Drawdown
- -21.7%
- Volatility
- 8.9%
Golden Ratio — Tactical Asset Allocation Strategy
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.
Backtest Performance (1994-12-30 to 2026-05-20)
| Metric | Golden Ratio |
|---|---|
| Compound Annual Growth Rate (CAGR) | 9.9% |
| Maximum Drawdown | -21.7% |
| Sharpe Ratio | 1.10 |
| Sortino Ratio | 1.46 |
| Annualized Volatility | 8.9% |
| Calmar Ratio | 0.46 |
| Total Return | 1850.6% |
| Backtest Period | 31.4 years |
Strategy Details
- Type
- Tactical (TAA)
- Rebalancing
- annual
- Risk Level
- moderate
- Variants
- 1
- Author
- Bogleheads Community
- 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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