GHHF vs Self-Leverage
GHHF has now been available for over a year, providing us with an opportunity to compare its real-world performance against a hypothetical self-leveraged portfolio. While both aim to boost returns through debt, there are critical differences in rebalancing, currency exposure, fees, and tax implications that can sway the outcome. The motivation is GHHF has access to cheaper debt than most can get via there mortgage, so is it worth moving over to it? Or do the other costs decay its lead? The idea is to compare GHHF to self-leverage, that is buying the same assets with the same amount of debt where the debt is obtained via debt recycling or an equity release. Disclaimer: I'm no expert at doing these comparisons, so take everything with a grain of salt. TLDR GHHF and self-leverage have delivered remarkably comparable returns over the past year of 17.6% pa vs 17.7% pa. Differences While I attempted to keep the differences to a minimum, there are a few differences between the two options...