Additions to Combined ETF 2X Model

July 11, 2010

My research indicates that adding ETF’s for Chile (ECH) and Australia (EWA) to my Combined ETF 2X model results in a higher Calmar Ratio (compound annual growth rate divided by maximum drawdown).  Consequently, I have adjusted the percentages of other ETF’s held by the model.

At the end of June, I compared the return of my model with the S&P 500.  In the future, I will also compare the return of my model with a hedge fund index.  One of the most commonly referenced hedge fund indices is produced by the Hennessee Group and can be found here.

FJP

Leave a Comment