My track record on multi-asset class investing has been poor, but I believe RPAR could deliver high-single digit to low-double digit returns annually over the next decade. RPAR's strategy involves leveraging a diversified portfolio of low-correlation assets, balancing risk by investing more in low-volatility assets. Despite recent poor performance due to a massive bond bear market, historical data and CAPM suggest future returns could improve to around 8% annually or more.
RPAR ETF has delivered almost 7% returns since November, recouping some of its 2022 losses. Revisiting the RPAR ETF's design, I believe its heavy allocation to bonds will cause it to underperform in the coming years. Instead of the RPAR, investors may be able to achieve superior diversified returns using low-cost ETFs.
![]() RPAR 7 months ago | Other | $0.12 Per Share |
![]() RPAR 10 months ago Paid | Quarterly | $0.09 Per Share |
![]() RPAR 26 Jun 2024 Paid | Quarterly | $0.21 Per Share |
![]() RPAR 25 Mar 2024 Paid | Quarterly | $0.05 Per Share |
![]() RPAR 26 Dec 2023 Paid | Quarterly | $0.2 Per Share |
![]() RPAR 7 months ago | Other | $0.12 Per Share |
![]() RPAR 10 months ago Paid | Quarterly | $0.09 Per Share |
![]() RPAR 26 Jun 2024 Paid | Quarterly | $0.21 Per Share |
![]() RPAR 25 Mar 2024 Paid | Quarterly | $0.05 Per Share |
![]() RPAR 26 Dec 2023 Paid | Quarterly | $0.2 Per Share |
ARCA Exchange | US Country |
The fund operates as an actively-managed exchange-traded fund (ETF) with a strategic focus on diversification across multiple asset classes. It aims to achieve investment growth by drawing upon a broad investment spectrum that includes global equities, U.S. Treasury securities, and commodities. Through this diversified investment approach, the fund seeks to provide investors with a balanced exposure to various market sectors and asset types. The investment strategy is anchored in mimicking the exposures of the Advanced Research Risk Parity Index, which suggests a methodology designed to balance risk across the aforementioned asset classes systematically. The fund's investment adviser plays a crucial role in executing this strategy by allocating assets in a manner that aligns with the targeted exposures, striving to optimize returns while managing risk.
The fund offers a range of investment solutions designed to cater to the diverse needs of investors, emphasizing risk management through diversified exposure. These include:
Investments in companies across the world, allowing investors to benefit from growth in various economies. This component of the fund's portfolio aims to capture the upside potential of global markets while spreading the investment risk across different geographical regions.
An allocation to U.S. Treasury securities provides a stable income component to the fund's investment mix, given their backing by the full faith and credit of the U.S. government. This segment targets the security and lower volatility typically associated with government bonds.
The fund includes commodities in its asset allocation, offering investors exposure to raw materials that are fundamental to the global economy. Including commodities can serve as a hedge against inflation and a source of diversification, given their low correlation with traditional financial assets like stocks and bonds.