Has anyone ever dealt with the $NTSG or $WTEF (-0,54 %) has anyone looked into it? At first glance, it would probably not be a bad investment compared to a 100% equity portfolio. (Especially the younger one $NTSG ).
To what extent would this be suitable for people with less of an affinity for risk? For example, in comparison to 80% stocks 20% bonds
For those who don't know it yet:
quite simply (I can't say much more than that) the etf has two shares. An equity component and a bond component.
90% equities
60% bonds.
for those who know math and think "you idiot miscalculated, that's 150%!" the 60% bond exposure is leveraged via rolling futures.
Of course, the low capitalization of the ETF has been problematic so far. There is a risk that it could be liquidated.
I haven't read into it that deeply yet. Therefore: does anyone know it? Any thoughts on it?
This is essentially a 1.5x leveraged 60/40 portfolio. According to theory and backtests, you can have the performance of the stock market with the drawdown of a 60/40 portfolio.
The whole thing is called efficient core because the 1.5x leverage means you need less capital for the core and have more for the satellites to achieve the same effect.
Interesting concept for core-satellite investors. 👍
