Hi @haejin,
I posted this comment on another aggressive ETF portfolio post, but in case you haven't read every comment I'll repeat some of it here:
I liked the idea of this strategy and decided I would investigate it further, which I have now done some of - I've run my own backtesting on it using your chosen ETFs and am more convinced to try it.
However I'm based in Australia, not the US. The platforms I can use at the moment don't have SPXL, ZIV, TQQQ, or TMF available. I am looking at further platform options to resolve this. Your alternative 'less aggressive' suggestions (SPY and TLT) are available to me, but I'd still be missing ZIV.
Could you provide some guidance?
My questions:
- Would a 'less aggressive' portfolio of SPY and TLT still work well, or does it need TQQQ and/or ZIV to work?
- Is there another ETF you can recommend in place of TQQQ and/or ZIV, to go with SPY and TLT?
- How did you find this strategy/these ETFs to consider?
- It's too much to ask for Australian ETF recommendations, so could you outline how an ETF can qualify for this portfolio, so I might try and identify my own set of Australian ETFs to consider?
Thanks for your time.
you can just use three ETF. That's fine. No ZIV required. Or, if you have Australian volatility index fund.
Use even mutual funds, they will work just as well.
I was taught this by a mentor.
How do you choose the mutual funds to use?
I was thinking there may be a strategy to choosing particular ETF/mutual funds - e.g. a growth, a bond, and a volatility index, which would all have negative correlations in their movements, the bonds being a 'safe harbour' in troubled market times, so there's hopefully always one moving upwards. And then add in leveraging for higher risk/reward.
Not clear if it's something along those lines or just pick any and back-test them to see if they may work.
I would think so as well ... I just don't know very much about ETFs/mutual funds (I have some, but mostly in a buy and hold to follow overall S&P over decades).