While I don't plan on it in the near term I can't totally ignore the low margin cost some brokers are offering. For awhile I have been kicking some things around to find a good all around portfolio. While I know backtesting is so limited to what the future holds it's still interesting.
If I were to take this approach my ideal portfolio if going by past history would be 30% schg (vug), 25% schd, 45% tlt rebalanced roughly every quarter. From Jan. 2012 the cagr is 12.5% vs the 16.3% of the sp500. The drawdown however is -6% of the 3 fund portfolio vs the -19.6% of the sp500. With a Sharpe ratio of 1.53 and sorting ratio of 3.15 in that same time. While I don't advocate bonds in everyday portfolios I would think it be a good idea for some kind of protection when using margin just my thoughts.
I know people are going to throw out qyld, quadfectas, and the ridiculous leveraged builds which I like but again not for margin and seeing even nusi had a lower draw than the model above with a much lower return the search is still on. Run some numbers and see what you can come up with. Keeping in mind I know the return aspect will be easy to beat, but can you also beat the significant lack of drawdown aswell? Let's go
(I know bonds are not looking good near term, but what I do know is no matter what the yields do these funds will always be a safe haven for when the market begins to tumble.)
Submitted September 26, 2021 at 07:51AM by Ragingbull32288 https://ift.tt/3lYvPcG
