Timeline for What are the options to beat the returns of an index fund, taking more risk?
Current License: CC BY-SA 4.0
4 events
| when toggle format | what | by | license | comment | |
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| Oct 7, 2020 at 19:26 | comment | added | Joe | Just adding risk is easy - buy any random stock, tada, more risk. The problem is taking that risk in exchange for greater expected earnings. | |
| Oct 7, 2020 at 19:25 | comment | added | Joe | @BenCrowell The difference I think here, though, is that for example comparing VOO with a gov't bond fund, VOO has more short term risk but over time shows consistently greater returns (in a manner that is anticipated to continue). You trade short term risk for long term profit. I don't think any of the ways of increasing your risk beyond that of a general market index fund increase your projected returns without becoming a day trader or otherwise making significantly more complex trades (LEAPs included, though that probably is the closest answer.) | |
| Oct 7, 2020 at 19:17 | comment | added | user13722 | You probably can't beat a broad market index fund, reliably, regardless of your risk tolerance. You can take risks that might, but odds are they won't. The OP seems to understand this. They specifically say they're willing to take more risk, which means that they know they can't do this reliably. | |
| Oct 7, 2020 at 6:14 | history | answered | Joe | CC BY-SA 4.0 |