13 December 2016: Passive investing on the rise

paper-stock-marketActively managed investment funds are having a hard time. According to Morningstar, investors withdrew € 83 billion from traditional investment funds and relocated their money to passive funds. More and more investors do not believe the promises fund managers make and are critical toward the high costs they charge for their (non-)performance. Passive funds just follow an index and have much lower costs. And the revenues of passive funds are similar to or even better than actively managed funds.
The Dutch Guys believe that you should combine the best of both worlds: follow an index (in our case: the volatility index) in an active way and charge no fee at all. With the outlook of much higher returns. And best of all: be in control of your own money. We predict that more and more investors will leave passive investing behind in the upcoming years and will switch to smart investing.

white-chapel-logo-smallUS indices were mixed yesterday: the Dow was able to squeeze out a small gain (+0.2%), but the S&P 500 (-0.1%) and the NASDAQ (-0.6%) recorded losses. The pressure was on financials, which were not able to extend their rally. Volatility was on the rise: the VIX added more than 7% and our UVXY ETFs gained more than 1%. Our return for the year rose to 326%. Return for the quarter is almost back at 40%.
White Chapel is not expecting volatility to decline and advises us to stick with our UVXY ETFs.

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter

$42,615

+326.15%

+326.15%

+39.1%

Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 368%.

RS_v05-smallThe best things in life are often also the simplest. While visiting friends for dinner, René was served a home made Italian salad for a starter. It consisted of chunks of fresh mozzarella, sweet cherry tomatoes, and freshly chopped basil, tossed with some extra virgin olive oil. That is basically everything you need to prepare a culinary treat of the highest order. And the effort/result ratio couldn’t be better! When you take things back to the essence, you end up with more than you started with. It’s a universal truth, which not only applies to the culinary arts.
italian_starter