Build Marc Faber’s Portfolio With ETFs

Build Marc Faber's portfolio with ETFs. How does it compare against other portfolios like the Permanent Portfolio?
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What is Marc Faber’s portfolio?

Marc Faber’s portfolio is exposed to 50% stocks, 25% bonds, and also includes gold. It can be built with 6 ETFs. The portfolio is a medium-risk portfolio.

For the past 10 years, Marc Faber’s portfolio has returned 7.48 with a standard deviation of 9.06. The dividend yield is 1.93. The 30-year return is 8.28%. Year to date Marc Faber’s portfolio has returned -10.61%. Last year it returned 10.78%.

How do you build Marc Faber’s portfolio with ETFs?

  • 13.00%  US Large Cap (VV)
  • 25.00%  REITs (VNQ)
  • 8.00%    International Developed Blend (VEA)
  • 4.00%    Emerging Markets (VWO)
  • 25.00%  Total US Bond Market (BND)
  • 25.00%  Gold (IAU)

What is the historical return of Marc Faber’s portfolio?

You can see the historical return of Marc Faber’s portfolio below.

NameAsset class countYear to dateReturn in 202010 year returnCAGR since 1989 (%)Risk levelExpense ratio
The Marc Faber Portfolio6-10.6110.787.488.2810.11%

How does Marc Faber’s portfolio compare to the best portfolios?

Below you can see the returns of the best portfolios that we have benchmarked.

NameSee PortfolioYear to dateReturn in 202010 year returnCAGR since 1989 (%)Draw Down
Premium Portfolio-13.2318.2916.5211.28-37.63%
Premium Portfolio-15.5218.1111.0311.21-44.87%
Premium Portfolio-14.0519.714.9910.85-32.77%
Premium Portfolio-10.093.1911.8510.99-36.46%
Premium Portfolio-10.263.6611.8710.88-36.35%
Premium Portfolio-14.5821.0316.2911.25-37.00%
Premium Portfolio-9.318.714.4711.14-35.26%
Premium Portfolio-13.77.4811.4510.93-37.91%
Premium Portfolio-12.755.3613.211.81-35.43%
Premium Portfolio-10.643.4213.1510.99-40.85%

Who is Marc Faber?

Marc Faber is the legendary permabear and author of the Gloom Boom & Doom Report.

He is credited for advising his clients to exit their positions before the 1987 stock crash.

His specialty is emerging markets and frontier markets.

Marc Faber is also a gold bug, despite his protestations. He has, on many occasions, hailed gold as a sound investment and has multiple times said that gold is his largest holding.

“When people talk about people who are optimistic about gold, they call them ‘gold bugs.’ A bug is an insect. I don’t call equity bugs ‘cockroaches.’ Do you understand? There is already a negative connotation with the expression of ‘gold bug.'”

– Marc Faber

Marc Faber is a permabear, which means he always remains skeptical of the market. He always fears the next downtown. The permabear mentality can hurt your investment returns because you can get so scared that you will refrain from taking any significant risk. But you need to take risks if you want returns. Risk and return are joined at the hip.

Marc Faber is known as Dr. Doom because of his always negative market sentiment.

His sentiment is excellently presented in his book Tomorrow’s Gold, Asia’s age of discovery. In that book, he tackles market cycles and focuses to a large degree on the downswings instead of concentrating on the upswings.

Description of the Marc Faber portfolio

Marc Faber’s trepidation of the market shows in his investment portfolio. The model portfolio comes from Meb Faber (no relation) and his book Global Asset Allocation: A Survey of the World’s Top Asset Allocation Strategies.

Marc Faber’s portfolio is tilted heavily towards real assets. Real assets cover real estate, commodities, precious metals, timber, and farmland.  It is a rather strange term but denotes that there are tangible physical things behind your investment. I would argue that an investment in Apple is very much an investment in real stuff as well.

50% of Marc Faber’s portfolio is in real assets, gold, and REITs. 25% is in bonds.

It is very much like the Permanent Portfolio by Harry Browne.

Marc Faber’s portfolio is conservative.

Resources for the portfolio

The Gloom Boom & Doom Report website.

Here is Marc Faber’s book Tomorrow’s Gold, Asia’s age of discovery. I don’t recommend it as it won’t help you to invest better. There are much better books that will do that.

Suggestions for your next steps

Finding the correct portfolio is hard. Maintaining your portfolio is also daunting. If you are still in doubt about which portfolio to choose, we suggest you read our article How To Invest Money: 5 Simple Steps That Work For Anyone

If you have already committed to a portfolio – good for you! If you need help maintaining the portfolio you will find our rebalance worksheet useful.

Rebalancing your portfolio lowers your risk and may provide higher returns in the long run. It is completely FREE.

You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.

Rebalancing lowers your portfolio risk and can increase your returns.

If you want access to our high-performing portfolios then you want to take a look at the premium portfolios. This is a paid product that gives you the 20 best-performing portfolios since 1989. The portfolios represent a great opportunity for you to get more money from your investment portfolios. We think it’s a “no-brainer”.

You stand to gain literally thousands more dollars EACH YEAR for the price of a few months of Netflix. (Haven’t you watched enough Netflix?).

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