Hi All,
I recently came across the risk parity portfolio management style. This sounds pretty similar to the asset allocation approach at itawealth. Especially when wrapped in an ETF format like RPAR, it seems to have the tax efficiency applicable to taxable accounts. The performance YTD is pretty respectable, seem to be reasonable resistant for this market downturn.
Here are some information on this investment approach.
I want to hear others what others thought about this ETF/style of investment for a pre-retirement, hands off type taxable account.
Thanks!
-Albert
Albert,
Thank you for this information. I don't know how I missed your post, but I did. I'll be looking into this.
Lowell
Albert,
This looks to be a portfolio that is approximately 80% in bonds, gold, and treasuries and 20% in equities.
Lowell
Albert,
I assume you have read this ITA article on Risk Parity.
https://itawealth.com/risk-parity-brief-explanation-risky-6040-portfolio-really/
This article explains why a 60/40 stock/bond portfolio is quite risky.
Lowell
Albert,
A less expensive option is to invest 20% in VTI and 80% in TLT.
Lowell
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