SSO - Leveraged ETF Portfolios Through The Drawdown
A few months ago, we discussed how leveraged ETFs can be used in investor portfolios. For pure equity investors, they can free up capital to use in fixed-income securities which can diversify equity exposure and outperform an unleveraged equity portfolio. And for income investors, leveraged ETFs can provide a potential hedge for a rising interest rate environment where a long-duration income portfolio could otherwise perform badly. In our last article, we showed how the combination of leveraged equity ETFs alongside high-quality, long-duration bonds has historically minimized drawdowns and outperformed unleveraged equity portfolios even during periods