UPAR: A Replacement for Comproducer Equities

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Drew: I've been spending more time looking into UPAR as a replacement for some of the equities in my accumulation portfolio. Do you think that the expense ratio is reasonable for the 1.68 leverage you get in UPAR? Certainly seems easier than managing the futures on my own plus rebalancing plus taxes. The ETF structure should provide tax efficiency. Long bonds should do fine for expected inflation over time, which leaves me with your beloved tips.

In this episode we answer emails from Drew, Carlos and Eric. We discuss the UPAR and RPAR risk parity ETFs and their construction, rant a bit about TIPS, discuss attractive narratives about de-dollarization in the context of cognitive biases (the possibility effect and ignoring base rates) and how our adult children use a Golden Ratio-style portfolio to save for intermediate goals.

Links:

Father McKenna Center donation page: Donate - Father McKenna Center

UPAR webpage: UPAR Risk Parity ETF (rparetf.com)

Michael Kitces interview: Michael Kitces: How Higher Yields Affect Asset Allocation and Retirement Planning | The Long View (simplecast.com)

De-dollarization article: De-dollarization Has Begun. | AIER

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