Investing is just as much about learning what to not invest in as what to invest in, and I’ll add GDMN, WisdomTree’s Efficient Gold & Gold Miners ETF to that list. Seems like it would be good for a RP portfolio, but it just isn’t. Check out the backtests, correlations, and my commentary here!
Yet another loser month, but this one with a silver lining, or rather a golden one, as gold softened the blow for a few portfolios. The Golden Butterfly won the month & the Capital Efficient Butterfly came in second, though both had performances in negative territory.
Two emails from readers prompt a query: can using 2X Leveraged Gold ETFs improve a portfolio? If so, what to use in the created space? I get behind the wheel to backtest some possibilities. 1st take: 2X Leveraged Gold holds promise; 2nd take: Managed Futures are perhaps the best complement.
For gold, I use GLDM (SPDR Gold MiniShares) as the representative choice in the test portfolios, and hold it in real life, as well. Low cost (expense ratio: .18%) and simple.
