Hi Anil, Checkout the Hedgefundie portfolio - 3X leveraged UPRO and TMF in 55%/45% ratio which builds on the same idea - in case of a crash, the TMF hedges the UPRO. There is data to suggest that this results in a CAGR of 35% over the since 1990 when leveraged ETFs came into being.
I did, also extensively read HEDGEFUNDIE's excellent adventure. Out of curiosity, have you put your money in 55%/45% UPRO/TMF? How long have you tried this and how has it done for you in that time period?
Yes you are right. I just tested it. 2009 it has returned CAGR of 28%: but this is just by doing nothing. But along the way if tou rebalance it during crash return could be better!
Learned so much from this. Thanks Anil. what do you personally use to monitor the yield curve? A link would help.
Hi Anil, Checkout the Hedgefundie portfolio - 3X leveraged UPRO and TMF in 55%/45% ratio which builds on the same idea - in case of a crash, the TMF hedges the UPRO. There is data to suggest that this results in a CAGR of 35% over the since 1990 when leveraged ETFs came into being.
Udit, how risky is this strategy? In bull markets and bear markets? Leverage scares me a bit so I have to ask.
You can use Portfoliovisualizer.com to backtest your scenarios
I did, also extensively read HEDGEFUNDIE's excellent adventure. Out of curiosity, have you put your money in 55%/45% UPRO/TMF? How long have you tried this and how has it done for you in that time period?
Yes you are right. I just tested it. 2009 it has returned CAGR of 28%: but this is just by doing nothing. But along the way if tou rebalance it during crash return could be better!