The ETF ecosystem continues to grow and change, with the wrapper’s flexibility making it a strong vehicle for investing innovation. Tuttle Capital is the latest firm to add to that wide ETF universe. Partnering with Porter & Company, the new multi-asset ETF offers a rules-based strategy that balances return drivers in the spirit of Harry Browne’s “permanent portfolio” in the 1980s.
Key Takeaways:
- Tuttle Capital has launched a new fund that revisits a classic 80s’ strategy approach.
- Building on Harry Browne’s “permanent index,” it equally balances four different return drivers.
- The fund could make for an intriguing long term hold for investors wanting a balanced strategy in one wrapper.
The Porter & Company Porter Portfolio Index ETF (PCPP), listed on CBOE, will track the Porter & Co. Porter Portfolio Index. In doing so, it aims to capture the performance of four key return drivers in one index. Charging a 75 basis point (bps) fee, the strategy will allocate 25% to Property & Casualty Insurance companies, 25% to capital-efficient equities, 25% to hard assets such as Bitcoin and precious metals, and 25% to cash-like investments according to a press release.
“Harry Browne built the original permanent portfolio in the 1980s based on a simple idea: an investor shouldn’t have to predict the next economic or market cycle in order to survive it,” said Matthew Tuttle, Tuttle Capital Management CEO.
“PCPP takes that idea and updates it for how markets actually work today — with insurance underwriters that compound through cycles, quality businesses that generate cash, hard assets including Bitcoin, and short-duration cash,” he added.
Details of the Multi-Asset ETF
The multi-asset rebalances periodically to keep that 25, 25, 25, 25 split. The Fund may also hedge its sensitivity to diversification risk by investing in derivatives like swaps, futures and more. According to the release, Browne’s original vision held that because markets shift through just a few overall conditions, a balanced approach could do well long term. Originally, those four drivers were equities, long-duration government bonds, gold, and cash. PCPP updates that list with assets like Bitcoin, for example.
Together, PCPP could make for an intriguing offering. Using the ETF wrapper’s efficiency and tax friendliness, the strategy represents an intriguing return for a classic strategy that may appeal to investors in an uncertain market.
For more news, information, and strategy, visit ETFDB.
VettaFi LLC (“VettaFi”) is the index provider for PCPP, for which it receives an index licensing fee. However, PCPP is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of PCPP.
