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.