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.
These are certainly exciting times to be an individual investor! One revelation lately has been the new wave of blended Capital Efficient ETFs, but after mentioning that term to a friend, I realized they haven’t gotten the publicity they deserve. So, here’s a RP Basics post to shed some light.
Heard on a podcast once that any idiot can run a portfolio backtest, but beware of their conclusions. Ladies and gentlemen, I resemble that remark, so here I am fiddling with a few leveraged 60/40s. No recommendations here, just testing some variations on a theme!
