Leveraged ETFs can help increase your investing returns. But they carry significant tail risk. Here’s a strategy that can help get the best of both worlds.
SmartLev
Growth of $10,000
Includes Trade Commissions
| Annualized Return | Total Return | Sharpe Ratio | Maximum Drawdown | Correlation to S&P 500 | Beta to S&P 500 | Average Trades/Month |
|---|---|---|---|---|---|---|
| -2.45% | -2.86% | -0.21 | -22% | 81% | 1.49 | 2.9 |
| SmartLev | Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 3.17% | -0.70% | -3.59% | 8.97% | 0.92% | 3.72% | -1.09% | -0.10% | -11.14% | 9.95% | -0.49% | -5.92% | |
| 2022 | -5.13% | -11.10% | -0.35% | 7.10% |
| Annualized Return | Total Return | Sharpe Ratio | Maximum Drawdown | Correlation to S&P 500 | Beta to S&P 500 | Average Trades/Month |
|---|---|---|---|---|---|---|
| 20.31% | 1294.50% | 0.93 | -28% | 54% | 0.66 | 2.46 |
| SmartLev | Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2008 | 8.98% | 2.62% | 0.91% | 1.60% | 1.48% | -1.60% | -8.24% | 0.57% | 3.33% | -6.70% | -1.56% | 7.58% | 11.89% |
| 2009 | 43.82% | -15.25% | -13.70% | 13.24% | 15.86% | 10.14% | -5.29% | 12.42% | 3.85% | 10.22% | -0.42% | 4.35% | -0.35% |
| 2010 | 16.96% | 1.49% | 0.65% | 9.74% | -2.75% | -2.42% | -8.74% | 14.56% | -15.77% | 11.37% | 7.57% | -6.40% | 0.22% |
| 2011 | 12.12% | 2.26% | 0.26% | 3.37% | 4.90% | -1.23% | 1.06% | -2.83% | 4.27% | -7.51% | 8.03% | -2.34% | 1.84% |
| 2012 | 56.11% | 5.71% | 6.55% | 4.71% | 2.26% | 5.12% | 0.24% | 2.05% | 4.74% | 3.46% | -0.58% | 9.60% | -1.04% |
| 2013 | 17.78% | 5.54% | -1.16% | -2.74% | -0.17% | 5.36% | -2.83% | 9.19% | -5.23% | -0.39% | 4.27% | 5.36% | 0.00% |
| 2014 | 5.55% | -1.93% | 1.64% | -4.49% | -5.85% | 4.52% | 2.57% | 0.35% | 7.88% | -7.66% | 6.18% | 5.42% | -1.35% |
| 2015 | -6.18% | 1.61% | 2.27% | -6.48% | 2.50% | -1.64% | -2.68% | -2.63% | -2.02% | -1.93% | 16.77% | -1.85% | -9.79% |
| 2016 | 6.98% | 4.91% | -4.78% | 8.37% | -0.68% | -1.37% | -9.18% | 6.90% | 0.30% | -6.88% | -1.82% | 0.89% | 4.66% |
| 2017 | 21.14% | 2.01% | 3.77% | 0.16% | 1.55% | 0.00% | -2.84% | 1.09% | 3.01% | 3.40% | 1.62% | 3.38% | 1.35% |
| 2018 | 8.34% | 2.93% | -0.42% | -1.16% | -2.51% | 0.94% | -1.46% | 3.57% | 5.22% | -3.05% | -0.86% | 1.00% | 2.37% |
| 2019 | 34.68% | 6.78% | 5.99% | 1.81% | 5.36% | 1.76% | 1.73% | 0.84% | 2.91% | -0.69% | 6.31% | 5.05% | 2.53% |
| 2020 | 61.45% | 2.99% | 3.05% | 3.79% | -0.13% | 4.97% | 17.93% | 11.10% | 13.61% | -6.89% | -5.94% | 0.22% | 0.67% |
| 2021 | 2.60% | -1.56% | -0.61% | -3.31% | 9.02% | 1.06% | 3.85% | -1.01% | 0.07% | -10.94% | 10.00% | -0.45% | -5.75% |
| 2022 | -4.85% | -10.97% | -0.25% | 7.15% |
SmartLev is a rules-based strategy that rotates between the ProShares Ultra S&P500® (SSO), a popular and liquid leveraged S&P 500 ETF, cash or a long volatility ETN. It can be used alongside other investments, as well as a possible substitute for U.S. growth equities.
Long ETFs can be traded in tax-sheltered accounts like IRAs, Roth IRAs, RRSPs, TFSAs
Low trade frequencies, simple rules, only two positions: long your chosen ETF, or treasuries
Holds intermediate-term treasuries during weak periods for equities - including selloffs
Customizable - replace SSO with any U.S. based leveraged or broad-market equity ETF