UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: michaeljc70 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77403  
Subject: Leveraged funds, invest difference safely Date: 4/18/2009 12:03 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Now that there is a wide range of leveraged mutual funds and ETFs that track a lot of the indexes, I was thinking about doing the following:

-Take whatever portion of my portfolio is in equities, sell them all and buy leveraged (3X) ETFs. I would buy 1/3 of what the allocation is.

-Take the other 2/3 of the money and buy things that don't move in lockstep with the equity market. This could be CDs, bonds, treasuries, GNMA or whatever.

It seems that my total return over the long haul will be considerably higher than just putting it all in a straight index fund since I have 2/3 of the $$$ earning interest/dividends while the 1/3 gives the same exposure to equities.

Am I missing something? I know there are higher expenses in leveraged funds, but they are still pretty low in the ETFs. I know that these leveraged ETFs also only track 3X the daily rate and will vary over time.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Kiddie Card Board
Should kids have their own credit card?
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Markel Corp.

Markel's Silver Year
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.