Low beta ETFs..... best avoid

S

SoyUnGanador

I ran some testing. QQQ versus various low beta ETFs. This was over the last 4 years more/less, a little longer. Given any given account size, if you set the amount invested so that you end up with the same overall gains over the test period in the QQQ and the low beta ETF, the drawdown on the QQQs is always materially less. Obviously you have to have more invested in the low-beta stuff to get the same overall gains, which means although QQQ is more volatile the more invested in the low beta stuff means the drawdown was more.

Conversely, if you set it so the drawdown is equal, QQQ earns much more over the test period.

The best low beta fund over the 4 or 5 I tested was FDLO. But it still could not compete with the QQQ.

No reason to fool around with the low beta stuff IMO. QQQ reigns supreme. Despite its meltdown in recent months LOL...
 
SoyUnPerdedor said:
I ran some testing. QQQ versus various low beta ETFs. This was over the last 4 years more/less, a little longer. Given any given account size, if you set the amount invested so that you end up with the same overall gains over the test period in the QQQ and the low beta ETF, the drawdown on the QQQs is always materially less. Obviously you have to have more invested in the low-beta stuff to get the same overall gains, which means although QQQ is more volatile the more invested in the low beta stuff means the drawdown was more.

Conversely, if you set it so the drawdown is equal, QQQ earns much more over the test period.

The best low beta fund over the 4 or 5 I tested was FDLO. But it still could not compete with the QQQ.

No reason to fool around with the low beta stuff IMO. QQQ reigns supreme. Despite its meltdown in recent months LOL...
More...

You remind me of that juicy fruit commercial.


I bought into the QQQ when it was around 360 or so? Now it is below 300. So you can bugger off with your analysis.

The QQQ has done nothing but go down since January, like all tech. What is the point of your post?
 
Overnight said:
You remind me of that juicy fruit commercial.


I bought into the QQQ when it was around 360 or so? Now it is below 300. So you can bugger off with your analysis.

The QQQ has done nothing but go down since January, like all tech. What is the point of your post?
More...


LOL! Sorry for your poor market timing. My point was made very succinct in my OP. Its right there for you. In plain English. Reach out... grab it. Try and understand it. Try and understand how if can still be a valid point even through your market timing is poor LOL....
 
SoyUnPerdedor said:
I ran some testing. QQQ versus various low beta ETFs. This was over the last 4 years more/less, a little longer. Given any given account size, if you set the amount invested so that you end up with the same overall gains over the test period in the QQQ and the low beta ETF, the drawdown on the QQQs is always materially less. Obviously you have to have more invested in the low-beta stuff to get the same overall gains, which means although QQQ is more volatile the more invested in the low beta stuff means the drawdown was more.

Conversely, if you set it so the drawdown is equal, QQQ earns much more over the test period.

The best low beta fund over the 4 or 5 I tested was FDLO. But it still could not compete with the QQQ.


No reason to fool around with the low beta stuff IMO. QQQ reigns supreme. Despite its meltdown in recent months LOL...
More...

Past does not predict future
 
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