I have a client, 100% invested in the S&P TSX/60 via the ETF, XIU. As a money manager, you might think, that doesn’t leave me much flexibility. That’s where you would be wrong. Through derivatives, without trading the underlying, below is a chart of the number of shares the client owns (multiplied by an arbitrary constant) of XIU. The graph has been adjusted for deposits, by excluding purchases from deposits, and not counting gains made ontop of deposits (or gains on gains, either).
Real Gains
One can see that real-wealth appreciation is being generated, via the number of shares owned. Doesn’t matter what the fiat is worth, or where the multipliers are, my client owns about 8.8% more of the TSX than he did just 4 months ago, without counting deposits.