Sandwich Portfolio
The Sandwich Portfolio was created by Bob Clyatt, author of Work Less, Live More, as a simplified companion to his more complex Rational Investing Portfolio. The name describes the structure: a diversified equity core is sandwiched between two defensive asset classes with different risk profiles -- gold on one side and bonds on the other. The result is a portfolio designed to blend equity growth potential with meaningful protection across different economic environments.
Signals are available for a curated set of tactical portfolios. This portfolio is not currently covered.
See covered portfoliosarrow_forwardTarget 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.
Investment Philosophy
The Sandwich Portfolio draws on the same all-weather thinking as the Permanent Portfolio and the Golden Butterfly Portfolio, recognizing that different asset classes tend to perform well in different economic regimes. Bonds provide ballast during recessions and deflationary periods, while gold offers a hedge against inflation and currency debasement. By positioning equities between these two defensive bookends, the portfolio aims to reduce drawdown severity without fully sacrificing long-run growth.
Who It's For
This portfolio is well-suited to retirees or near-retirees who want meaningful equity exposure but prioritize a smoother ride and downside protection. It is particularly relevant for investors who are uncomfortable with equity-heavy volatility but skeptical of bond-heavy portfolios in a potentially inflationary environment.
Pros
- Balanced protection across both inflationary and deflationary environments
- Equity core provides the primary long-run growth driver
- Conceptually simple structure that is easy to understand and maintain
Cons
- Gold is a non-yielding asset that can drag on returns during prolonged equity bull markets
- Will consistently underperform the best-performing single asset class in any given period
- International and small-cap tilts can introduce tracking error versus simpler all-US portfolios
Related Portfolios
How Index Fund Portfolios Performed in the Two Worst Crashes of the Last 25 Years
Download the free PDF — plus get monthly portfolio insights from PortfolioDB.