For example, you could have an S&P 500 fund that, over the next year, will have a maximum of 0% capital losses (it can't go down), you will only get the first, say, 5% of gains that the equity index makes. So if stocks go up 20% the next year, your return is capped at 5%, but if they crash 50%, you don't absorb any capital losses. In practice, the return cap is going to be just a bit above the corresponding Treasury bill for the same duration.

These can be constructed in various different ways and institutionally I'm sure there are more bespoke ways that are more efficient from a fees/returns and tax perspective, but one way to do this on your own without going the ETF route is:

- Pick an amount you'd like to invest. - Buy a Treasury bill for some duration. Treasury bills are discounted at the time of purchase and return the target amount when the bill matures. For instance, if you buy a $100k 1-year Treasury bill, it might cost $96.5k today. - Now you have $3.5k in your pocket and a guarantee that you'll get $100k in a year when the bill matures. Use that $3.5k now to purchase call options or vertical spreads on the S&P 500 index to capture the upside that you can. Your return is limited by the structure of that options trade and what its maximum payoff is.

If you're willing to accept more than 0% downside, then you can achieve a higher potential upside cap as well.

Comments URL: https://news.ycombinator.com/item?id=48605940

Points: 7

# Comments: 2

AVX512 leading to thermal throttling is a common myth that from what I can tell traces its origins to a blog post about clock throttling on a particular set of low-TDP SKUs from the first generation of Xeon CPUs that supported it (Skylake-X), released over a decade ago: https://blog.cloudflare.com/on-the-dangers-of-intels-frequen...

The results were debated shortly after that by well-known SIMD authors that were unable to duplicate the results: https://lemire.me/blog/2018/08/25/avx-512-throttling-heavy-i...

In practice, this has not been an issue for a long time, if ever; clock frequency scaling for AVX modes has been continually improved in subsequent Intel CPU generations (and even more so in AMD Zen 4/5 once AVX512 support was added).

In practice, though, the cases that compilers can successfully autovectorize are very limited relative to the total problem space that SIMD is solving. Plus, if I rely on that, it leaves me vulnerable to regressions in the compiler vectorizer.

Ultimately for me, I would rather write the implementation myself and know what is being generated versus trying to write high-level code in just the right way to make the compiler generate what I want.