Sandwich Portfolio
The Sandwich Portfolio is a creative multi-asset allocation design popularised by Tyler at PortfolioCharts.com, who has developed and analysed a range of novel portfolio constructions. The name describes the structure: a "middle layer" of core equity holdings sandwiched between two defensive bookends — typically gold on one side and bonds on the other. The result is a portfolio that blends equity growth potential with meaningful protection from both inflationary environments (where gold tends to perform) and deflationary or recessionary environments (where bonds tend to perform).
Investment Philosophy
The Sandwich Portfolio draws on the same all-weather philosophy as the Permanent Portfolio and the Golden Butterfly, recognising that different asset classes perform well in different economic regimes. By placing equities — the primary long-run growth engine — between two defensive asset classes with different risk profiles, the portfolio aims to reduce the magnitude of drawdowns without fully sacrificing equity upside. The structure is designed to be robust across economic regimes rather than optimised for any single expected scenario.
Who It's For
This portfolio suits investors who want meaningful equity participation but also prioritise downside protection and a smoother investment experience. It appeals to investors who are uncomfortable with the volatility of equity-heavy portfolios but also sceptical of bond-heavy portfolios in a potentially inflationary environment.
Pros
- Balanced protection across inflationary and deflationary environments through gold and bond holdings
- Equity component provides the core long-run growth driver
- Simple conceptual framework that is easy to understand and maintain
Cons
- Gold is a non-yielding asset that can be a long-term drag on returns during sustained equity bull markets
- Triple-asset structure still requires periodic rebalancing to maintain intended weights
- Like all broadly diversified multi-asset portfolios, it will consistently underperform the best-performing single asset class in any given period
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Target Allocation
Performance Snapshot
Rolling Returns
| Period | Low | Average | High |
|---|---|---|---|
| 1 Year | -23.9% | +7.7% | +34.0% |
| 3 Year | -4.2% | +7.0% | +18.7% |
| 5 Year | +1.2% | +6.9% | +14.9% |
| 10 Year | +4.0% | +7.1% | +10.1% |
Growth of $10,000
Historical Drawdown
Percentage decline from the portfolio's peak value at each point in time.
Rolling Returns
Annualised return for each rolling period ending on that date.
Annualised return for each 1Y period ending on that date.