January 2025
To Investors:
In 2024, the S&P 500 delivered 25% and long-term Treasuries were down 8%. Combining them evenly with a small 2% allocation in cryptocurrency, the unleveraged Income and Growth investable benchmark was up 10%.
As a result, the leveraged investable benchmarks were up by 14% to 18%. This brings the trailing 10-year total return figures to a range of 87% to 258%, or 6% to 14% annualized.
At ETF PM, our active strategies strongly outperformed. Max Alpha was up 32% and Tactical 3x delivered 33%. Over the past 7.2 years since Max Alpha’s inception, this strategy returned 196% versus a gain of 59% for the Income & Growth investable benchmark. Similarly, over 8.8 years since inception, Tactical 3x delivered 243% versus a gain of 85% for Income & Growth. In addition, both of our active solutions were far lower risk in down markets.
This past year saw many strong trends; specifically artificial intelligence, blockchain, energy, and quantum computing. In addition, certain levered ETFs for these securities delivered extraordinary performance. While we are very pleased with our active strategies in 2024, we are focused on enhancing our performance in the years ahead.
Thank you for your trust and confidence. Please contact us at your convenience if you would like to plan a call or meeting to discuss.
As always, we wish you and your family a phenomenally happy, healthy, and prosperous New Year!
David S. Kreinces
Founder & Chief Investment Officer
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