Permanent Portfolio 2.x
Simple • Lazy • High-performing
The ideal investment strategy for beginners or passive investors
📚 The evolution of a proven strategy
The Permanent Portfolio 2.x is the result of my research on Harry Browne's Permanent Portfolio.
This strategy evolved from the PP 2.0 to the current PP 2.x, following my research in "The War of Portfolios". The "x" symbolizes its evolving nature, adjusted as research progresses.
Unlike Browne's model, which relies on bonds, the PP 2.x is built on five equal-weighted ETFs combining real assets, gold, and defensive or growth sectors. The goal: solid performance with controlled volatility, with no need for daily monitoring.
PP 2.x composition
The PP 2.x is made up of five equal-weighted ETFs, each representing 20% of the portfolio:
| ETF | Country | Sector | Weight |
|---|---|---|---|
| SRFCHA | Switzerland | Real estate | 20% |
| GLD | United States | Gold (commodities) | 20% |
| XLV | United States | Healthcare | 20% |
| VDC | United States | Consumer staples | 20% |
| QQQ | United States | Technology | 20% |
Each component plays a specific role: Swiss real estate (SRFCHA) provides stability and income in Swiss francs; gold (GLD) protects against uncertainty and inflation; healthcare (XLV) and consumer staples (VDC) form the defensive base; the Nasdaq 100 (QQQ) drives long-term growth.
Why choose the PP 2.x?
Simple & Accessible
Ideal for beginners and those with modest capital. Five ETFs to manage, all available on major brokerage platforms.
Minimal Upkeep
A "buy & hold" approach with a simple annual rebalance. Perfect for the passive investor who'd rather spend their time on other things.
Controlled Risk
Solid performance with reduced volatility. The mix of defensive sectors, real assets, and a growth engine keeps things balanced.
| Asset | Price | Target | Current | Difference |
|---|
Share counts are rounded to the nearest whole number, so the amount actually invested may differ slightly from the target amount. Last closing price used: 08-01-2026.
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Who is the PP 2.x for?
The PP 2.x is mainly aimed at three types of investors:
- The beginner who wants to invest intelligently without drowning in complexity. Five well-chosen ETFs beat dozens of poorly understood positions.
- The seasoned passive investor who wants to hand most of their management over to a proven mechanism, freeing up time for what actually matters.
- The person on the path to financial independence who needs a robust portfolio to get through both the accumulation and withdrawal phases. In the withdrawal phase, the VPW (Variable Percentage Withdrawal) method, an adaptive rate based on age, allocation, and actual performance, applies naturally to this type of portfolio.
The PP 2.x isn't the only path to financial freedom, but it's one of the most accessible. With a long-term horizon and regular saving, even a modest one (~20% of income), the results can surprise you.
🚀 How do you get started?
For smaller budgets:
If your capital is limited, start with the least volatile ETFs and add the rest progressively.
- Start with SRFCHA and GLD (less volatile)
- Add XLV and VDC as your budget allows
- Add QQQ last, once the other positions are in place
- Once the portfolio is complete, rebalance to the 20%-per-ETF target allocation
Maintaining the portfolio:
Just one requirement: rebalance annually to keep the target allocations at 20% and optimize long-term performance.
ETFs — Substitution guide
If you don't have access to the ETFs mentioned, here are the recommended alternatives by domicile:
Swiss real estate & Gold
- SRFCHA: SIX Swiss Exchange (Swiss/European brokers)
- Gold: GLD / IAU (US) / SGLD (Ireland)
Defensive & growth sectors
- Nasdaq 100: QQQ (US) / CNDX (Ireland)
- Consumer staples: VDC (US) / IUCS (Ireland)
- Healthcare: XLV (US) / IUHC (Ireland)
FAQ
What is the Permanent Portfolio 2.x?
The Permanent Portfolio 2.x is an evolution of Harry Browne's model, which drops bonds in favor of five equal-weighted ETFs at 20% each: SRFCHA (Swiss real estate), GLD (gold), XLV (healthcare), VDC (consumer staples), and QQQ (technology). It only requires annual rebalancing.
What's the difference between the PP 2.0 and the PP 2.x?
The PP 2.0 was a first evolution of Browne's model. The PP 2.x is an even more refined version, coming out of the "War of Portfolios" series. The "x" reflects its evolving nature: the composition is adjusted based on the latest research, without ever sacrificing simplicity.
Do you need significant capital to start with the PP 2.x?
No. The PP 2.x is designed to be accessible with modest capital. Just acquire the five ETFs progressively, starting with the least volatile (SRFCHA, GLD), then the defensive sectors (XLV, VDC), and finally QQQ.
How does the annual rebalancing work?
Once a year, you compare each ETF's current value to its 20% target allocation. If an ETF has outperformed, you sell part of it to reinvest in the ones below their target. This mechanism enforces disciplined behavior: trim what's gone up, add to what's gone down.
Is the PP 2.x suited for financial independence (FIRE)?
Yes. Its minimal upkeep and resilience make it a serious option in both the accumulation and withdrawal phases. In withdrawal, the VPW (Variable Percentage Withdrawal) method, an adaptive rate based on age, allocation, and actual performance, is the preferred approach, more personalized than the 4% rule used as a rough baseline.
Ready to invest simply and effectively?
The PP 2.x is your entry point into high-performing passive investing
⚠️ IMPORTANT DISCLAIMER
The information shared on this blog, particularly regarding my portfolios and investment decisions, is published for purely informational and educational purposes.
This is NOT personalized investment advice. My decisions reflect my personal situation (time horizon, risk tolerance, financial goals), which is likely very different from yours.
Investing involves risk, including the total loss of capital. Before making any investment decision, I strongly recommend consulting a professional financial advisor who can assess your personal situation.
Past performance is not indicative of future results.
I cannot be held responsible for decisions you make based on the information on this blog.
Sources
- Harry Browne, Fail-Safe Investing (2001), original Permanent Portfolio concept
- The War of Portfolios series, dividendes.ch, comparative analysis leading to the PP 2.x
- FactSet, market data