Global Risk Parity fund for Canadians

Discussion of funds that implement the Permanent Portfolio strategy

Moderator: Global Moderator

Post Reply
User avatar
Smith1776
Executive Member
Executive Member
Posts: 229
Joined: Fri Apr 21, 2017 6:01 pm

Global Risk Parity fund for Canadians

Post by Smith1776 » Sat Jul 06, 2019 4:03 pm

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.
Early to bed and early to rise makes a man healthy, wealthy, and wise.
User avatar
Ad Orientem
Executive Member
Executive Member
Posts: 3097
Joined: Sun Aug 14, 2011 2:47 pm
Location: Florida USA
Contact:

Re: Global Risk Parity fund for Canadians

Post by Ad Orientem » Sat Jul 06, 2019 5:32 pm

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?
User avatar
Smith1776
Executive Member
Executive Member
Posts: 229
Joined: Fri Apr 21, 2017 6:01 pm

Re: Global Risk Parity fund for Canadians

Post by Smith1776 » 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.

I own one share to keep an eye on it.
Early to bed and early to rise makes a man healthy, wealthy, and wise.
User avatar
Ad Orientem
Executive Member
Executive Member
Posts: 3097
Joined: Sun Aug 14, 2011 2:47 pm
Location: Florida USA
Contact:

Re: Global Risk Parity fund for Canadians

Post by Ad Orientem » Fri Jul 12, 2019 3:41 pm

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.
User avatar
Kbg
Executive Member
Executive Member
Posts: 1363
Joined: Fri May 23, 2014 4:18 pm

Re: Global Risk Parity fund for Canadians

Post by Kbg » Sat Jul 13, 2019 6:26 pm

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.
Post Reply