2:1 leverage for long term index strategy based on “Lifecycle investing” strategy to improve risk-return profile | by Ayrat Murtazin | Feb, 2025

Hello folks,

it might sound counter-intuitive but the theory put forward by two Yale professors (Ayres & Nalebuff) in their book called Lifecycle Investing proposes a leveraged index investment strategy to improve the risk-return profile for long term index / ETF investors. In the following I will shortly outline the basics concerning this strategy and would like to infer if somebody has successfully applied this theory (or somewhat differently) in practice.

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