I was talking today with a fellow pen vendor and he told me that no one wants buys and sells anymore because he looks at this ETF and shows me the graph of US46137V6130 | Invesco FTSE RAFI US 1000 ETF which achieved a performance of… of… drum roll! … it went from 100 in 2014 to almost 1000 in 2024. And the drawdowns were minimal, that is, the maximum drawdown was 15%, stuff that any investor is used to putting up with like Nutella on bread.

Performance 3 years69.27%Volatility 3 years15.67%Performance 5 years151.68%Drawdown 3 years-15.40%Sharpe Ratio 3 years1.21DIAMAN Ratio 3 years11.09%DIAMAN Ratio 6 months0.51%

What do I mean? Simple: we are in an era where if you invest and then hold on to your investment, if it has been designed correctly, you just have to wait and become King Midas. However, we have seen that this is not the case and that historically there have been drawdowns of up to 50% in the USA and to review the purchase prices (if you bought badly) you have to wait up to 10 years. Moral: risk has not disappeared from the financial scenario and it is good to earn less than 1000% in 10 years but protect yourself from the next certain destructive event that will occur.

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