6Mes
30% in a 3x leveraged fund? What could possibly go wrong?
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@Stevoo13 This certificate is the illustration of a momentum strategy. To find out what it's all about, please follow the posts at @Epi if you haven't already done so. Yes, the risk is not entirely without, but lower than B&H of a world ETF and with better performance. As a strategy diversification and counterweight to buy and hold, for me personally an indispensable part of the portfolio.
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6Mes
@Psychedelic_Sunflower Exactly. 3xGTAA only makes sense in an overall portfolio of different uncorrelated strategies or asset classes. The biggest risk of things going wrong is not the leverage, but the person who cannot withstand the vola and breaks off unhappily in panic or exhaustion.
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6Mes
@Psychedelic_Sunflower Down 14% today... to each his own, but definitely not something I would trust with 30% of my portfolio, and I'm definitely more of a risk-averse investor. 🤷🏻♂️
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@Stevoo13 right, today. Still up 10% for the month and 25% for the year
Of course there is some turbulence, but what counts is the output in 10 years, not what happened on 30.01.2026. Just out of interest: Have you looked into the idea behind the certificate?
Of course there is some turbulence, but what counts is the output in 10 years, not what happened on 30.01.2026. Just out of interest: Have you looked into the idea behind the certificate?
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6Mes
@Psychedelic_Sunflower That's exactly my point: an investment can only be properly valued over an extended period of time, including extended periods of depreciation (e.g. 2022). I see that the certificate has only been around for just over a year, which is definitely far too short a period to understand the long-term implications of owning it, especially given its leverage. As a smaller "growth" allocation, it's perfectly fine, but I'd hesitate to consider it as my core allocation....
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@Stevoo13 Yes, one year as an observation period would indeed be far too short. Backtests were carried out for this purpose, transparently presented by the certificate's manager. The assumptions and trading principles on which it is based were put through their paces, at least for the past. Of course, this is no guarantee for future performance, but it is at least a good indicator.
However, I can certainly understand your doubts.
However, I can certainly understand your doubts.
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