Diversification can help boost yield, long-term returns, maximize income growth, and reduce volatility in even the most extreme market crashes.
Bonds and managed futures are the best hedging strategy in history, never failing since 1980.
Here is a new exchange-traded fund that combines 50% bonds, 50% cash, and 100% trend-following managed futures into an ETF with historical strategy returns (and yield) of 12.4%.
That’s 3X better than bonds and 2X better than its industry. In 2022, it would have been up 22%, and the strategy averaged 33% gains during historical bear markets (mirror image of the S&P).
This ETF replacing all other hedging assets in our ZEUS Income Growth Portfolio, would have reduced 2022’s peak decline from 9% to 5% and resulted in average peak declines of 8% in the last five recessions, compared to 33% for the S&P 500, while delivering 6% yield and over 14% historical returns.