The principle of the 'barbell' (English: barbell strategy) is an investment strategy that involves allocating capital to two diametrically opposite types of assets:
• One 'blunt' side of the barbell — extremely conservative assets (low-risk, with minimal volatility, usually short-term bonds, for example, ETF $BIL, which invests in 3-month U.S. Treasury bills).
• The second 'blunt' side — maximum risk assets (high-yield, volatile, such as ETF $TQQQ — threefold leverage Nasdaq, or cryptocurrency like Bitcoin).
The goal is to combine 'stability' and 'explosive potential', balancing risk and return through the contrast between extremes. Moderate options (balanced funds, medium-term bonds, etc.) are completely ignored.
💡 How the 'barbell' strategy works:
You hold:
• 80–90% of capital in the safest instruments, which hardly fluctuate in price and provide moderate income.
• 10–20% — in the most aggressive assets, which can yield 'x's, but can also completely collapse.
If the high-risk part rises rapidly — you receive disproportionately high returns.
If it falls — the main part of the capital is protected by the 'conservative' side.
🎯 Advantages of the approach:
• Capital protection from significant losses.
• Participation in the growth of the most explosive sectors.
• Suitable for high uncertainty situations, where it is difficult to predict what will work.
🔥 Example of distribution:
• 80% — ETF $BIL (T-Bills, 3 months)
• 10% — ETF $TQQQ (Nasdaq x3)
• 10% — BTC (cryptocurrency)
P. S. Do you like this strategy? Do you consider it viable?
😈 Yes, I like it
🔥 No, I don't like it
