Finally now wrapping up the mini-series on capital efficiency, this time by passing along a few resources that I have found helpful in my investigation. Kind of a Noah’s Ark of resources: two new whitepapers, two links to papers I have already reviewed, two helpful videos, and two websites.
All this talk of Capital Efficient ETFs has led me to create a new test portfolio: the Capital Efficient Golden Butterfly (CEGB). It’s 40% NTSX, 25% GDE and 35% RSBT, profitable but still diversified, with 75% in additional leverage. Backtests are awesome - can’t wait to watch its progress!
Now that we covered the basics of blended capital efficient funds, how can we use them in a portfolio? Here is another “Risk Parity Basics” post - this time showing NTSX and GDE, two great examples of the strategy, in action.