This episode breaks down an investment strategy called Return Stacking, which involves layering different investment returns on top of each other to achieve greater than a 1:1 exposure. This strategy aims to unlock the benefits of diversification by allowing investors to add alternative investment strategies, such as managed futures and futures yield, to their existing portfolios without sacrificing core stock and bond allocations. The strategy's proponents believe that Return Stacking can enhance long-term returns, improve portfolio diversification, and manage investor behavior by reducing tracking error to their benchmark. The episode detail the Return Stacked® suite of ETFs, including the Return Stacked® Bonds & Managed Futures ETF (RSBT), the Return Stacked® U.S. Stocks & Managed Futures ETF (RSST), the Return Stacked® Bonds & Futures Yield ETF (RSBY), and the Return Stacked® U.S. Stocks & Futures Yield ETF (RSSY), which are designed to implement Return Stacking and provide investors with the opportunity to build diversified portfolios without sacrificing core allocations.
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As always, these are my opinions and do not constitute investing, legal, or tax advice. Please seek guidance from a professional.