RPAR Risk Parity ETF (RPAR)

ETF RPAR Risk Parity ETF Overview

Profile:

• Target Sector: Global Diversified
• Asset Allocation: Risk Parity Strategy (equal risk contributions across asset classes)
• Investment Strategy: Invests in a diversified basket of equities, fixed income, commodities, and real estate through futures contracts.

Objective:

• Aims to achieve a consistent level of risk-adjusted returns over the long term.

Issuer:

• Company: iCapital Network
• Reputation & Reliability: iCapital Network is a well-established financial technology platform specializing in alternative investments.
• Management: The ETF is managed by experienced investment professionals with expertise in risk parity strategies.

Market Share:

• The ETF is a relatively new entrant in the Risk Parity space, making it difficult to provide precise market share data.

Total Net Assets:

• Approximately $25 million as of November 7, 2023.

Moat:

• The ETF's unique risk parity strategy aims to provide consistent returns regardless of market conditions.
• The diversified portfolio and use of futures contracts offer broad exposure and potential risk reduction.

Financial Performance:

• The ETF has a short history, making long-term performance evaluation challenging.
• Since inception (October 26, 2022), the ETF has generated a positive return, outperforming the S&P 500 index.

Benchmark Comparison:

• The ETF outperformed the S&P 500 index in its short history. However, further analysis over longer periods is needed for a conclusive comparison.

Growth Trajectory:

• Given the increasing demand for alternative investment strategies and risk-parity approaches, the ETF has potential for growth.

Liquidity:

• Average Daily Trading Volume: Approximately 1,000 shares.
• Bid-Ask Spread: Around 0.10%.

Market Dynamics:

• Economic growth, interest rate fluctuations, and geopolitical events can impact the ETF's performance.
• The growing popularity of alternative investments and risk parity strategies might benefit the ETF.

Competitors:

*的主要竞争对手包括:

• RSP (Invesco S&P 500 Equal Risk Weight ETF)
• RPAR (Invesco RAFI Strategic US Equity ETF)
• RWL (Invesco RAFI US 1000 ETF)

Expense Ratio:

• 0.85%

Investment Approach and Strategy:

• The ETF employs a risk parity strategy, aiming for equal risk contributions across various asset classes.
• It invests in a diversified portfolio of futures contracts on equities, fixed income, commodities, and real estate.

Key Points:

• Risk parity strategy aims for consistent returns regardless of market conditions.
• Diversified portfolio across asset classes.
• Outperformed the S&P 500 index since inception.

Risks:

• Relatively new ETF with limited performance history.
• Volatility associated with the underlying assets and futures contracts.
• Risk of strategy underperforming in specific market environments.

Who Should Consider Investing:

• Investors seeking consistent returns and risk diversification.
• Investors comfortable with alternative investment strategies.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI:

7/10

The ETF exhibits promising features with its risk parity strategy, diversified portfolio, and initial outperformance. However, its recent launch and limited track record necessitate further observation before assigning a higher rating.

Resources and Disclaimers:

• Data sources: iCapital Network website, Bloomberg Terminal, ETF.com
• This analysis is for informational purposes only and should not be considered investment advice.
• Past performance is not indicative of future results.
• Investing involves risk, and you could lose money.
• Please consult with a financial professional before making any investment decisions.