Listen on The Move
Chances are, you're already using carry strategies in your portfolioâwithout even realizing it. Problem is, if youâre not doing it deliberately, it might be doing more harm than good.
🔍 Episode Summary
In this special episode of Raise Your Average, Pierre is joined by Adam Butler, Chief Investment Officer at ReSolve Asset Management, co-creators along with Newfound Research of the Return Stacked ETF suite, to unpack the misunderstood world of carry strategies. They dig into what carry really isâbeyond just currency tradesâand why most investors unknowingly take on carry risk without any plan to manage it.
Adam breaks down how carry strategies work across currencies, bonds, equities, and commodities, and why combining them in a diversified portfolio can offer powerful, uncorrelated returns. He also explains how return stacking solves a long-standing advisor dilemma: how to add diversification without cutting into your core stock or bond holdings. Now, thanks to ETFs like RSSY and RSBY, retail investors can finally tap into strategies that used to be locked behind hedge fund doors.
If you're an advisor or investor looking to build smarter, more resilient portfoliosâwithout giving up performanceâthis conversation is a must.
💡 Key Takeaways
- What Carry Really Means: Itâs the income you get from holding an assetâlike dividends, bond interest, or yield differentials between currencies.
- Youâre Already Exposed (Probably): Many portfolios contain carry trades by accident, especially when investing internationally.
- Diversification That Works: A global, long/short carry strategy across multiple asset classes offers true diversification without piling on risk.
- Now in ETF Form: Carry strategies were once only for institutions. Now anyone can access them through ETFs like RSSY and RSBY.
- No Need to Sell Your Core Assets: With return stacking, you donât have to sell stocks or bondsâyou just add carry on top.
- Built-In Behavior Benefit: Carry becomes part of your total return, so itâs less likely to get cut when itâs underperforming.
- Realistic Return Potential: Expect 3â5% excess return over time at 10% volatilityâsimilar to equities but with a different risk profile.
- Why This Matters: The macro space is still relatively inefficientâmeaning carry has room to outperform without competition.
⏱️ Chapters
00:00 â Intro: What Is Carry, Really?
01:00 â The Currency Carry Trade 101
04:00 â Beyond Currency: Carry Across Asset Classes
07:00 â Why Carry Happens Everywhere in Your Portfolio
10:00 â Absolute Return vs. Uncorrelated Return
12:00 â Accidental Carry Exposure (And How to Fix It)
14:00 â The Case for a More Deliberate Strategy
17:30 â How Return Stacking Solves the Diversification Dilemma
22:00 â Why RSSY and RSBY Are Built Differently
26:00 â Behavioral Bonus: Less Line-Item Regret
30:00 â What You Can Expect from Carry Over Time
33:00 â The Limits of Stock Picking & the Power of Macro
36:00 â Why Carry Could Be Retailâs Most Underused Advantage
40:00 â Where to Learn More and Take Action
📌 #ReturnStacking, #CarryStrategy, #ETFInvesting, #PortfolioDiversification, #AlternativeInvestments
🧠 Learn more at: https://returnstacked.com
📘 Read more at: https://investresolve.com
📊 ETFs: RSSY (Stocks + Carry) | RSBY (Bonds + Carry)
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