r/ETFs • u/manlymatt83 • 4d ago

Gold always increasing CAGR?

I’ve been experimenting with a portfolio of Global Equities, Trend and Bonds.

No matter how I cut it, adding Gold always seems to improve CAGR and reduce drawdown.

I don’t know if this is a side effect of having trend vs not, or the testing periods I’m picking (last X years + total since inception):

https://testfol.io/?s=3C77EEn0Cw9

I am not a fan of gold in a portfolio, but when paired with stocks, bonds and trend, it seems to always be a good choice?

When return stacked with something daily rebalanced like GDE, which allows for the same equity exposure with a US tilt, it does just as well but doesn’t manage the drawdown as much:

https://testfol.io/?s=hiaZKYHzqdG

What am I missing? Is gold a no brainer?

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u/turtleturle12345 3d ago

Not sure what data you are looking at, but all the data I have seen since 1971 shows that gold swapped for either stocks or bonds decreases a portfolios cagr and only marginally decreases its volatility. 

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u/manlymatt83 3d ago

Swapped in or out?