Growth, Income &
Total Protection.
A sophisticated architecture designed to capture global upside, generate yield through commodities, and mathematically hedge against market crashes.
Executive Summary
This portfolio abandons the traditional "60/40" stock/bond model in favor of a more robust "Tri-Pillar" approach. By combining the uncapped growth potential of a Global All-World Fund with the non-correlated stability of Precious Metals (Physical & Options), and overlaying a dedicated Options Hedge against the "Magnificent 7" tech concentration, we aim to smooth out volatility while remaining fully invested.
The Tri-Pillar Allocation
A balanced division of capital ensures no single asset class failure can derail the portfolio.
- ● Growth (50%): Passive global equity exposure.
- ● Income (30%): Hard assets & bonds for yield.
- ● Protection (20%): Active insurance against crashes.
Target Breakdown
⚙ Tailoring to Your Profile
The 50/30/20 split is a baseline "All-Weather" model. Your specific weightings must adapt to your life stage and risk capacity:
Consider increasing Growth to 60-70% and reducing Income. Your time horizon allows you to absorb more volatility for higher returns.
Consider increasing Income/Bonds to 40-50%. Protecting capital becomes more important than aggressive growth.
1. The Growth Engine
Visualizing the "All-World" coverage that drives portfolio expansion.
US Core (~60%)
Dominant exposure to US Tech & Consumer services.
Developed ex-US
Stability from Europe, Japan, UK & Canada.
Emerging Markets
High-beta growth from China, India & Brazil.
2. Income & Hard Assets
❖Strategic use of Gold and Silver not just as a store of value, but as an income generator through options.
Metals Strategy Detail
The position is structurally split to balance safety with yield:
25% Physical (Vaulted/Safe)
75% Options (Income/Leverage)
3. The Concentration Risk
⚠Global funds are heavily weighted towards the "Magnificent 7". This chart shows exactly what we are hedging against.
4. Risk vs. Role Analysis
We accept high volatility in our Protection assets because they negatively correlate with our Growth assets.
5. The "Put" Protection Mechanism
Using IncomeShares Index Put products on QQQ, SPY, and Mag 7 creates a "floor." It transforms a market crash from a disaster into a rebalancing opportunity.
Puts decay (cost of insurance). Growth assets outperform.
Result: Profit.
Equities drop. Puts explode in value (short exposure).
Result: Stability.
Dividends and Income options generate yield.
Result: Slow Growth.
6. Fund Selection & Projected Returns
Target tickers and estimated annual performance breakdown.
| Role | Recommended Fund / Ticker | Alloc. | Est. Return |
|---|---|---|---|
| Global Growth | Vanguard FTSE All-World UCITS ETF (VWRP/VWRL) | 50% | 8 - 10% |
| Income (Metals) | WisdomTree Physical Gold (PHGP) / Silver (PHAG) | 15% | 5 - 7% |
| Income (Bonds) | Vanguard Global Bond Index Fund | 15% | 3 - 4% |
| Hedge/Income | IncomeShares Options (QQQ/SPY/Mag7 Series) | 20% | Variable |
Projected Return Composition
Estimates based on historical asset class performance. Past performance is not indicative of future results.
Strategic Conclusion
The Goal
To build a "Sleep Well" portfolio that does not require timing the market. By holding the insurance (Puts) constantly, we eliminate the fear of a crash.
The Outcome
A smoother equity curve with lower maximum drawdowns. While we may slightly lag a raging bull market due to hedging costs, we avoid the 50% drops that destroy long-term compounding.