Business & Finance
A Quant and a Korean Dentist Push the Limits of Leveraged ETFs
Key Points
A Quant and a Korean Dentist Push the Limits of Leveraged ETFs A growing number of investors from the US to South Korea are using leveraged exchange-traded funds for long-term investing, a far cry from the day trading they were designed for. In the US, Research Affiliates founder Rob Arnott spends part of his time betting against both bullish and bearish leveraged ETFs at once, seeking to profit from the quirks of their daily rebalancing rather than the direction of the market. In South...
A Quant and a Korean Dentist Push the Limits of Leveraged ETFs
A growing number of investors from the US to South Korea are using leveraged exchange-traded funds for long-term investing, a far cry from the day trading they were designed for.
In the US, Research Affiliates founder Rob Arnott spends part of his time betting against both bullish and bearish leveraged ETFs at once, seeking to profit from the quirks of their daily rebalancing rather than the direction of the market. In South Korea, the epicenter of the leveraged-ETF trend, former dentist Song Wonjun says the products helped him retire at 44 after turning them into the centerpiece of a long-term investing strategy he now teaches to hundreds of thousands of online followers.