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Global Risk Parity fund for Canadians

Posted: Sat Jul 06, 2019 4:03 pm
by Smith1776
https://www.horizonsetfs.com/ETF/HRA

For Canadians, just wanted to share that there is a Permanent Portoflio-esque fund in the form of the Horizons Global Risk Parity ETF.

If, for whatever reason, buying individual funds is untenable, this could be a reasonable option.

Re: Global Risk Parity fund for Canadians

Posted: Sat Jul 06, 2019 5:32 pm
by Ad Orientem
Just took a cursory look with the following observations...

* Relatively steep F&E of .65%, especially for what is basically a fund of passive funds.
* Looks kinda bond heavy and light on equities.
* Has close to 10% in gold which I like.
* No clear explanation on how they assign asset allocation.
* Hasn't been around for long. That always makes me cautious. Anyone remember PERM?

Re: Global Risk Parity fund for Canadians

Posted: Fri Jul 12, 2019 1:05 pm
by Smith1776
Indeed, the ETF isn't exactly perfect. I really wish the fees in particular were down to Vanguard levels. An additional concern is that the fees of the underlying funds aren't included in the 65 basis points you mentioned. They're tacked on top of that fee.

I own one share to keep an eye on it.

Re: Global Risk Parity fund for Canadians

Posted: Fri Jul 12, 2019 3:41 pm
by Ad Orientem
Smith1776 wrote:
Fri Jul 12, 2019 1:05 pm
Indeed, the ETF isn't exactly perfect. I really wish the fees in particular were down to Vanguard levels. An additional concern is that the fees of the underlying funds aren't included in the 65 basis points you mentioned. They're tacked on top of that fee.
YIKES!
Smith1776 wrote:
Fri Jul 12, 2019 1:05 pm
I own one share to keep an eye on it.
That seems reasonable.

Re: Global Risk Parity fund for Canadians

Posted: Sat Jul 13, 2019 6:26 pm
by Kbg
The only thing difficult about running a global risk parity is deciding on the asset specifics.

A bit of outside the box, I’d look at the tax structure. If they do the rebalancing and don’t pass on the cap gains might be a bargain. With risk parity rebalancing more frequently than say the PP is a given to implement.