Bringing you live news and features since 2006 

RPAR Risk Parity ETF exceeds USD1bn AUM

RELATED TOPICS​

Wealth management and consulting firm Advanced Research Investment Solutions’ (ARIS) RPAR Risk Parity ETF (RPAR) has gathered more than USD1 billion in assets in less than 13 months since its launch to become one of the largest alternative ETFs in the country. 

ARIS recently merged with Evoke Advisors and the combined firm has more than USD17 billion in assets under management.

RPAR seeks equity-like returns over the long run with controlled risk. It attempts to provide investors with lower-cost and tax-efficient access to an investment strategy that has traditionally been used by sophisticated institutional investors. The fund aims to generate positive returns during periods of economic growth, preserve capital during periods of economic contraction, and preserve real rates of return during periods of heightened inflation.

“We launched RPAR because we see far too many investors making the same mistake in their portfolios: poor balance due to overexposure to equities,” says Alex Shahidi, Managing Partner and Co-Founder of ARIS Consulting. “The danger of such investment strategies became even clearer to many investors over the last year due to historic market volatility and turbulent economic and political news,” he said. “Our goal is to provide investors a way to diversify their risk exposure in a tax-efficient and low-cost way, while also capturing market upside.”

2020 presented a real-life stress test for RPAR. During the first quarter, RPAR was down only 4 per cent. By minimising losses during the initial Covid-19 related economic shock, RPAR demonstrated resilience during one of the steepest stock market declines in history. The fund finished the year up over 19 per cent also showing its ability to participate in market rallies.

The fund has a 0.53 per cent gross expense ratio and tracks the Advanced Research Risk Parity Index by diversifying its allocations among four asset classes: equities, commodities, Treasury bonds, and Treasury inflation-protected securities (TIPS). By allocating equal risk to each of these diverse market segments and structuring each to achieve an equity-like return, the balanced mix can earn attractive returns with managed risk over time.

“Our goal is to provide investors with deeply researched and thoughtful approaches to investing,” says ARIS Managing Partner and Co-Founder Damien Bisserier. “We launched RPAR because the strategies that we believe are best suited for navigating exogenous and unexpected risks aren’t easily accessible to individual investors at a reasonable cost.”

Before co-founding ARIS with Shahidi, Bisserier was a Senior Investment Associate at Bridgewater Associates, one of the world’s largest alternative asset management firms renowned for its “All Weather” risk parity strategy. Before ARIS, Shahidi managed institutional client assets at Merrill Lynch.

Latest News

HSBC Asset Management’s (HSBC AM) ETF and Indexing business has passed USD100 billion in assets under management (AUM), reflecting its..
Amundi’s ETF Market Flows Analysis for April reveals that investors added EUR54.1 billion to global ETFs in April with equities..
VanEck has reached USD10 billion in assets under management in Europe for the first time in April 2024...
Global index revenues increased 9.3 per cent in 2023, totalling a record USD5.8 billion, according to a benchmark study published..

Related Articles

Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Sean O' Hara
Pacer ETFs has announced the launch of three Cash Cows UCITS ETFs. The firm writes that this will give European...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by