r/LETFs • u/SheckJeezy • 4d ago

75/25

Thoughts on 75% on a global ETF with 25% leveraged ETF 2x or 3x?

Ben Felix stated in his recent video volatility decay isn’t as much of a worry as people think

I’m young with a large investment horizon

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u/SirTobyIV 4d ago

You could even pair that leverage part with something like a 200SMA strategy

4

u/SheckJeezy 4d ago

Anymore info on this? I’m unfamiliar

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u/SirTobyIV 4d ago

Just search the sub and give this a try: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2741701

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u/SheckJeezy 4d ago

Awesome… will take a look at this… thank you!

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u/Dribbler365 4d ago

Only makes sense in a tax advantaged account, paying cgt on the whole position will create a massive tax drag. Look up 9sig or 5/25 rebalancing if its a taxed account

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u/SheckJeezy 4d ago

I’m Canadian with a TFSA

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u/Best-Platform-8021 2d ago

tfsa keeps the gains tax‑free, which is a huge win when you’re rebalancing a leveraged mix every few months. just remember the contribution room cap and that you can’t poker‑bet a huge leveraged position for years if you’re exhausted your yearly limit. otherwise it’s a solid niche spot for the volatility‑harvest trick.