I am thinking of the following scenario:
- Expansion, index with low fees
- After a market crash, lever up and buys equities
Does there exist a fund which follows this strategy? Preferably an ETF?
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Which country you are referring to ?– riyaCommented Jun 5, 2019 at 20:51
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1What is a mostly-passive fund that becomes active after a stock market crash? Got an example? Or is this something that you hope exists?– Bob BaerkerCommented Jun 5, 2019 at 21:13
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2@BobBaerker This is something the OP hopes exists.– Martin Bonner supports MonicaCommented Jun 6, 2019 at 8:49
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@riya United States– etf_questionCommented Jun 6, 2019 at 23:49
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2 Answers
Something close to what you're looking for would be a balanced/tactical allocation fund, like VBIAX. It invests in a fixed mix of 60% stocks, 40% bonds.
When the market crashes, to rebalance, it will sell bonds to buy stocks. It will do the same in reverse if the market soars. All while keeping a very low expense ratio and needing no action on your part.
You could accomplish this with any ETF and a limit order. Just decide what price indicates the stock market has crashed and set the limit order to buy at that price or better.
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Not really what is asked here. OP wants to know if a hybrid active/passive fund exists, one they would ideally be invested in and have qualities of a passive index fund during an economy boom but switch to active management to weather recessions/market crashes.– LeonCommented Jun 7, 2019 at 8:38