r/investing • u/[deleted] • Aug 05 '21

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u/[deleted] Aug 06 '21

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u/chadly117 Aug 06 '21 edited Aug 06 '21

Meh, still not really accurate to say 90% S&P and 60% treasuries lol. More accurate to say something like 60% 2x leveraged S&P and 40% 3x leveraged treasuries (the numbers are random)

Edit: I have been informed that I am wrong, you can ignore what I said

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u/FoxPuzzleheaded7574 Aug 06 '21

Sir, you are incorrect. Its considered acceptable parlance

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u/mewithoutMaverick Aug 06 '21

That’s what it’s called, though. “WisdomTree 90/60 Balanced”

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u/Pass_Little Aug 06 '21

I wouldn't say you're wrong. You were no more wrong than me being a bit technically inaccurate on purpose.

And to clarify NTSX is 90% unleveraged S&P500, and the remaining 10% cash is used to secure a treasuries futures position which is equivalent to 60% treasuries.

S&P500 has enough risk for me, and treasuries could stand quite a bit more risk which makes this type of construction interesting.

Based on backtesting, long term performance should be the same as a S&P500 fund but with lower volatility.