Why I Own This Potentially Life-Changing 12.4%-Yielding ETF

Why I Own This Potentially Life-Changing 12.4%-Yielding ETF

Posted On March 17, 2023 8:06 am

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.

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About author

Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.

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