REITs in a Risk Parity Portfolio?

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Frank: I just wrapped up a seven part series looking at REITs and their role in a Risk Parity portfolio. In the concluding article of the series, the main points were that a portfolio of individual REITs would do better than either a REIT fund or a portfolios of individual utilities. Frank: My basic conclusions on REITs have not changed; they are kind of an optional item to include in a risk parity style portfolio. If you do include them, I wouldn't probably devote more than 5 to 10% of the portfolio to them.

In this episode we follow up on Episode 209 with some recent (as in this week) Wade Pfau references that confirm what we said about overly pessimistic SWR assumptions. And then we answer emails from Justin, Drew, Jim and Chris. We discuss REITs and the Risk Parity Chronicles series about them, good sources for information about factor or "smart beta" investing, and questions about transitioning from accumulation to decumulation when you are close to "winning the game."

Links:

Retire With Style Podcast #34: Retire With Style - Episode 34: Even In Volatile Markets, Find Out Why The 4% Rule Distribution May Be Too Low (google.com)

Risk Parity Chronicles REIT Series Conclusion: Post-script to REITs series: How do individual REITs compare? (riskparitychronicles.com)

Rational Reminder Podcast #213: RR #213 - Expected Returns and Factor Investing - YouTube

Rational Reminder Podcast #129: RR #129 - Five Factor Investing with ETFs - YouTube

Resolve Asset Management YouTube Channel: ReSolve Asset Management - YouTube

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