Last week we looked at some of the professional risk parity style funds from last year and see how they performed. The one that did the best was AQR, which has been doing risk parity work for a long time. Most of the other ones did not perform that well. There's a lot of tips in these underperforming portfolios.
In this episode we answer emails from Dan, Chas and Sam. We discuss some aspects of a new Risk Parity book, the poor performance and problems with TIPs, sub-portfolio constructions, using a correlation analysis to determine which non-U.S. funds to use, which bond funds to use, why you shouldn't pay attention to proposed legislation, more on international funds and how to find the podcast where your email is answered.
And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio. We also review the lackluster annual performances of RPAR and other professional risk-parity style funds. Note that RPAR is run by the author of the book discussed in answer to the first question.
Additional links:
Father McKenna Center Donation Page: Donate - Father McKenna Center
Commodity Producers ETFs list: Commodity Producers Equities ETFs (etfdb.com)
Original RPAR Episode: Podcast #31| Risk Parity Radio
Correlation Analysis of Chas's Proposed Funds: Asset Correlations (portfoliovisualizer.com)
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