It’s an interesting study to compare 100% of an index fund with a 2x ETF and 50% of a vanilla bond fund and do the same with 3x ETF and 67% of a vanilla bond fund. (Or dial it down to whatever your allocation to stocks is divided by the leverage factor and allocate the remainder to the bond fund.) Typically the 3x version outperforms the other two with a modest decrease in the Sharpe ratio.
Comparisons of a 100% allocation to an unleveraged fund with a 100% allocation to a leveraged one I think is silly (and financially suicidal).
Comparisons of a 100% allocation to an unleveraged fund with a 100% allocation to a leveraged one I think is silly (and financially suicidal).
Statistics: Posted by Kbg — Wed Mar 12, 2025 3:15 am