Reported about 2 months ago
A leveraged investment strategy that collapsed during the 2008 financial crisis is making a comeback in the form of new exchange-traded funds (ETFs), which integrate the concept of 'return stacking.' This strategy aims to diversify portfolios by combining various uncorrelated assets while leveraging borrowed money. Despite its risks, such as potential losses in downturns, early adopters have seen significant interest, with one fund quickly acquiring $200 million in assets since its launch, and the total assets across all return-stacking funds exceeding $600 million.
Source: YAHOO