Riding the HEDGEFUNDIE Adventure (UPRO/TMF) on M1 Finance

In a hurry? Here are the highlights:

  • Hedgefundie is a member of the Bogleheads forum.
  • Hedgefundie created a thread in February 2019 proposing a 3x leveraged ETF investing strategy based on risk parity using the S&P 500 index (UPRO) and long-term treasury bonds (TMF) held in a 40/60 allocation.
  • Hedgefundie later updated the strategy’s asset allocation in August 2019 to 55/45 UPRO/TMF.
  • Extensive backtesting, discussion, and analysis within the thread by members of the Bogleheads forum supports the validity and potential market outperformance of the strategy.
  • The proposed strategy calls for quarterly rebalancing.
  • Several different protocols/variations of the strategy emerged in the Excellent Adventure thread, including monthly rebalancing, rebalancing bands, and volatility targeting with various lookback periods.
  • Some users have added a dash of TQQQ (3x the NASDAQ 100 index) for a minor tech tilt, as Big Tech has had a stellar run recently.
  • It is recommended to implement the strategy within a Roth IRA on M1 Finance, to avoid tax implications and to make regular rebalancing seamless and easy.

Who is Hedgefundie?

What is the Hedgefundie Strategy?

Alternative Options to the Hedgefundie Portfolio

The Hedgefundie Portfolio ETF Pie for M1 Finance (UPRO/TMF)

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Analytical and entrepreneurial-minded data nerd, usability enthusiast, Boglehead, and Oxford comma advocate. https://www.OptimizedPortfolio.com

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John Tyler Williamson

John Tyler Williamson

Analytical and entrepreneurial-minded data nerd, usability enthusiast, Boglehead, and Oxford comma advocate. https://www.OptimizedPortfolio.com

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