5min chapter

Risk Parity Radio cover image

Episode 259: FI With Friends, Bid/Ask Spreads, Margin vs. Leveraged ETFs and GDMN

Risk Parity Radio

CHAPTER

The Best Way to Implement Leverage Using Leveraged ETFs

Ron: I wanted to know at which point does it make more sense to use Leverage ETFs instead of using a margin loan to gain leverage. Ron used the hedge-funny 55uPro slash 45TMF portfolio as my example. He then established a baseline result in portfolio visualizer using SPY slash TLT and levering that up with a 0% interest loans. Now, he ran the SPY slashTLT split with increasing the margin loan interest rates. As you can see, somewhere around 1.5%, the performance of the margin loan method begins to degrade below the leverageETF method.

00:00

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode