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RE: AGGRESSIVE ETF PORTFOLIO Update: UP by 13.52%

in #money7 years ago

you can just use three ETF. That's fine. No ZIV required. Or, if you have Australian volatility index fund.
Use even mutual funds, they will work just as well.

I was taught this by a mentor.

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How do you choose the mutual funds to use?

I was thinking there may be a strategy to choosing particular ETF/mutual funds - e.g. a growth, a bond, and a volatility index, which would all have negative correlations in their movements, the bonds being a 'safe harbour' in troubled market times, so there's hopefully always one moving upwards. And then add in leveraging for higher risk/reward.

Not clear if it's something along those lines or just pick any and back-test them to see if they may work.

I would think so as well ... I just don't know very much about ETFs/mutual funds (I have some, but mostly in a buy and hold to follow overall S&P over decades).

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