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by heroiccocoa 1093 days ago
Another use I don't see mentioned yet is that they offer investors an uncorrelated source of returns from the main asset classes (stocks and bonds). According to Markowitz and modern portfolio theory, including such an asset in the portfolio will make it more efficient (better risk/return). Then, you can leverage the whole thing back up to the original level of risk and get higher returns. Also search for the modern re-branding of this concept known as "return stacking".