# Volatility-capped leverage: Rules and Paper Record

> Volatility-capped leverage: the rule, what it holds at the Nov 3, 2026 close, its signal and its paper record. A hypothetical ETF strategy.

Data as of Nov 3, 2026. Rebuilt every trading night.

Data as of Nov 3, 2026. Rebuilt every trading night.

## Volatility-capped leverage

Hold an equal mix of eight 2x single-stock funds, shrunk toward cash when the mix's recent swings pass a cap

At the Nov 3, 2026 close Volatility-capped leverage is partly in and holds AVL 10%, MSFU 10%, FBL 9% and 5 more, with 26% in cash. Since the funds listed on Oct 10, 2024, it returned +14.4% a year with a deepest fall of −36.5%.

Hypothetical. No money is invested.

| Fund | Name | Weight |
| --- | --- | --- |
| Cash | | 25.9% |
| AVL | Direxion Daily AVGO Bull 2X ETF | 9.6% |
| MSFU | Direxion Daily MSFT Bull 2X ETF | 9.5% |
| FBL | GraniteShares 2x Long META Daily ETF | 9.5% |
| NVDL | GraniteShares 2x Long NVDA Daily ETF | 9.4% |
| AMZU | Direxion Daily AMZN Bull 2X ETF | 9.4% |
| GGLL | Direxion Daily GOOGL Bull 2X ETF | 9.1% |
| TSLL | Direxion Daily TSLA Bull 2X ETF | 8.8% |
| AAPU | Direxion Daily AAPL Bull 2X ETF | 8.7% |

### The rule

- Hold an equal mix of eight 2x single-stock funds, shrunk toward cash when the mix's recent swings pass a cap.

- A rule reads the close of the last trading day of the month and trades at the next close.

- The universe is 8 funds; the benchmark is SPDR S&P 500 ETF Trust (SPY).

- It is checked at each month end.

Source: Moreira, A. and Muir, T. (2017). Volatility-Managed Portfolios. Journal of Finance 72(4), 1611-1644.

Computed by ETFIQ from Tiingo daily prices. Data sourced by Tiingo .

### Where to next

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Source: ETFIQ, independent ETF data. Recomputed nightly from public filings and prices.
Cite: ETFIQ Strategy Lab, Volatility-capped leverage, data as of Nov 3, 2026. https://etfiq.com/models/strategies/volatility-capped-leverage/
Licence: https://etfiq.com/license/ Data ETFIQ computes is free to use with attribution: ETFIQ (etfiq.com). Issuer data stays under its owner's terms.
HTML: https://etfiq.com/models/strategies/volatility-capped-leverage/