The proliferation of ETFs has given retail investors unprecedented access to liquid, low-cost, broadly diversified portfolios. This is brilliant and we can thank Jack Bogle and his partners for launching the original index fund, which later was the inspiration for the first ETFs. But where there is a great innovation, you can be sure there will also be a marketer who will exploit it and ruin it for investors. I am talking of course about inverse and leveraged ETFs and other complex products that have no role to play in a portfolio except to make short-term bets. And if you think these products don’t ruin it for investors, let me give you some data…
On leverage can you be specific on certain etfs which I believe don’t daily reset but use futures. Would these suffer from the same issues as you mention?
Specifically wtef/ntsx in the UK that leverage fixed income with futures. Also the USA etfs return stacking from Corey Holstein.
Not saying these don’t have leverage risk but think it is different than say a 3uls etf fund short s&p500
I use wtef long term to get 60/40 mix and create “space” in portfolio for managed futures allocation.
Fineco discloses how many people hold the asset. I must have typed the code of my boring old vanguard fund wrong because I came across a 7x China held by 26%
Hi
Thanks for all your interesting posts.
On leverage can you be specific on certain etfs which I believe don’t daily reset but use futures. Would these suffer from the same issues as you mention?
Specifically wtef/ntsx in the UK that leverage fixed income with futures. Also the USA etfs return stacking from Corey Holstein.
Not saying these don’t have leverage risk but think it is different than say a 3uls etf fund short s&p500
I use wtef long term to get 60/40 mix and create “space” in portfolio for managed futures allocation.
Thoughts?
Thanks in advance
That has been exactly my experience. Thank you.
Fineco discloses how many people hold the asset. I must have typed the code of my boring old vanguard fund wrong because I came across a 7x China held by 26%
https://x.com/George_Aliferis/status/1772532584020402302