profile image
70/30 is currently trending on social media. Very few people actually know why. Why not 80/20 or 60/40? 70/30 corresponds neither to the weighting according to GDP nor to MK (it is actually max Sharpe Ratio 2000-2007).

Only do what you understand! Otherwise you will change your "strategy" every few months and you will necessarily be one of the 80% of private investors who lose in the long term.
6
profile image
@Epi Which ETF would you choose if you could only have one?
profile image
@Iwanowitsch It's hard to say, as I wouldn't recommend anyone to invest in just one ETF and certainly no ETF would be suitable for everyone in every situation forever. But with a gun to my head, I would perhaps say: $WTEF?
1
profile image
@Epi Very interesting ETF. Quasi a portfolio concept consisting of US equities + 40% bonds. The performance so far seems to come very close to the S&P500. In turbulent times, this ETF could even generate an excess return thanks to the bonds and in any case ensure less drawdown. How did you find out about this ETF?
1
profile image
@Iwanowitsch Yes, you've got it! It's basically a 1.5x leveraged 60/40 US portfolio (an efficient core, because it requires 30% less capital for the core, leaving more capital for the satellites). I admit that I cheated a bit when answering the question about the ONE ETF. But there were no conditions. 😁

I can't remember exactly how I came across this. I think it was an article on Stock3.

On the Wisdomtree site there is the white paper of the study on which the ETF is based. Very interesting.
1