My 3x Leveraged Variable Portfolio

[Smith1776]

Hey all.

The latest episode of the Rational Reminder podcast featured James Choi, an econ professor at Yale. A particularly interesting part of the discussion was in the latter half where he mentioned leveraged ETFs and how they are more prudent of an investment vehicle than most believe.

My general intuition is that leverage risk is probably preferable to concentration risk if one is looking to increase returns. I've built myself an experimental PP/GB-esque portfolio with 3x leverage consisting of the following:

Asset Class	Ticker	Allocation
3x Gold Mining Stocks	CGMU	20%
3x Canadian Stocks	TCND	20%
3x U.S. Large Cap Stocks	TSPX	10%
3x U.S. Small Cap Stocks	TRSL	10%
3x U.S. Long-Term Treasury Bonds	TTLT	40%
Total		100%

Edit: typos

[Smith1776]

From what I understand, this is pretty similar to Hedgefundie's excellent adventure over on the knuckleheads forums.

Every fund in the portfolio has 3x leverage on it, and the portfolio will follow standard rebalancing practices.

I will keep you guy's posted on my results!

[Jack Jones]

This guy has a couple similar portfolios he's been tracking for awhile:

https://www.riskparityradio.com/portfolios

[seajay]

That's a lot of debt (borrowing for leverage). Perhaps consider just scaling/leveraging the stock PP element alone


https://www.portfoliovisualizer.com/bac ... mn3tk7O7eV