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Harry Browne's Index ETF Portfolio.

Discussion in 'Exchange Traded Funds (ETF)' started by Johny_come_lately, 11th Nov, 2011.

  1. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2009
    Posts:
    703
    Location:
    SE Queensland
    Here is Mr Browne's Portfolio in ETF form.



    Percentage MER ASX.Code Company

    25% 0.40 CASH CFS.Wholesale.Cash

    25% 0.15 PMGOLD Perth.Mint

    25% 0.40 Bonds CFS.Wholesale.Index.Australian.Bond

    12.5% 0.25 VEU Vanguard.All.World.Ex.US

    12.5% 0.07 VTS Vanguard.US.Total.Market


    TOTAL MER(0.278)




    Johny. :)
     
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  2. Chris C

    Chris C Well-Known Member

    Joined:
    2nd Apr, 2008
    Posts:
    1,327
    Location:
    Brisbane, QLD
    Wow... someone is gloomy about the world.

    Suppose I can't blame him.

    That said, I'd trade some of that Gold exposure for some commodities or some diversfied commodity based equities like BHP, gives you a degree of protection from money debasment and upside growth if the world sorts it **** out and gets on with rapidly developing the emerging markets.

    Also, whilst the MERs are generally higher, I can't help but feel if you have at least a 10+ year time horizon then I'd be overweight in Asian/Emerging market equities over western equities. We are lucky here in Australia that we might be a decent proxy for emerging market growth given our resource wealth, so a low cost ETF like VAS might be good option, but I personally want my finger in those fast growing emerging market pies.

    *patientenly waiting for an African based ETF*
     
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  3. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2009
    Posts:
    703
    Location:
    SE Queensland
    Hi Chris,

    Harry Browne was an interesting character. He was a libertarian, and believed you should take control of your finances, and not rely on the government. He started life as a gold bug, then created his portfolio in the 70's.

    What is interesting is; the gold, cash, bonds and shares when combined, create a very stable, low volatile performance. This portfolio sneers at downturns or high inflation.

    Harry was very specific about the gold portion. He was afraid of government confiscation. Buying gold from the Perth Mint gives you the real deal and not just paper.


    As for buying Resource companies instead of gold, my shares are down 15% while gold is not. Any way, Who knows how this crisis is going to pan out!



    Johny.
     
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  4. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2009
    Posts:
    703
    Location:
    SE Queensland
    An updated portfolio.


    Percentage MER ASX.Code Company

    25% 0.18 AAA.AX Betashares.Wholesale.Cash

    25% 0.15 PMGOLD.AX Perth.Mint.Gold

    25% 0.2 VGB.AX Vanguard.Index.Australian.Govt.Bonds

    12.5% 0.14 VEU.AX Vanguard.All.World.Ex.US

    12.5% 0.05 VTS.AX Vanguard.US.Total.Market


    TOTAL MER(0.158)


    Johny. :D
     
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