Passive Investing on Steroids: Using Leverage to Reduce Risk and Increase Returns (en Inglés)

Daniel Fernandez · Independently Published

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Reseña del libro

Do you want to significantly increase your passive investment returns without having to spend a lot of time? Do you want to get the most out of the stock market without having to become the next Warren Buffet? Is there anything better diversified and more productive than a simple index-based investment? In my book – Passive investing on steroids – I talk about the construction of passive investment portfolios using leveraged ETFs (exchange traded funds) that can surpass the risk adjusted returns of normal stock investments. Although the concept of leverage is usually associated with great increases in risk – and therefore never recommended for a passive investing approach – my book goes into detail about the different kinds of leverage and how leverage can be used in a smart and yet simple manner to increase potential returns significantly without also shooting up your risk. I propose several different portfolio choices using leveraged ETF instruments and show through historical simulations how these approaches would have performed since the early 1980’s. The book in fact contains R code that the reader can use to reproduce all the historical simulations and figures within it. I also talk about how this code can be used to actively monitor the portfolios and better time opportunities to get into the market.

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