LOS ANGELES, Dec. 13, 2019 /PRNewswire/ -- Advanced Research Investment Solutions (ARIS), the Los Angeles-based wealth management and consulting firm with $12 billion in assets under management, today announced the launch of the RPAR Risk Parity ETF (RPAR). The fund will seek to provide investors with low-cost and tax-efficient exposure to a risk parity investing strategy in a single-purchase strategy.
Under increasingly uncertain market conditions across the globe, investors continue to consider their portfolio allocations. By diversifying across market segments that have historically gone up and down in varying economic environments, risk parity strategies aim to provide investors a more consistent return over time. This approach differs from traditional portfolio allocation strategies, which tend to be overly dependent on environments that favor strong equity performance.
"When we look at a typical new client or prospective client's portfolio, we see the same mistakes repeatedly: overexposure to equity markets and bonds that are highly correlated to equities," said Alex Shahidi, Partner and Co-Founder of ARIS Consulting. "Looking into the characteristics that different assets exhibit, it becomes clear that many investors are simply not well-diversified. With RPAR, we are excited to deliver a better diversification solution to our clients and investors."
ARIS will leverage its extensive experience with risk parity investment strategies to help guide the development and management of RPAR, as the firm currently utilizes this approach for many of its existing clients. Prior to starting ARIS, Co-Founder Damien Bisserier was a Senior Investment Associate at Bridgewater Associates, known for being one of the world's largest hedge fund managers, and leaders in risk parity.
"Alex and I began ARIS in an effort to provide our clients with a more forward-thinking and educated approach to investing," said Damien Bisserier. "The current political and economic environment is unprecedented in many ways, exposing more traditional equity-concentrated portfolios to significant risk of loss. It has always been our aim to help clients achieve their investment goals while substantially minimizing any losses they may experience in a downturn, and we see RPAR as a core part of pursuing these objectives."
RPAR will seek to track the Advanced Research Risk Parity Index and will invest across multiple asset classes and sectors. At launch, it will be roughly exposed 25% to global equities, 25% to commodities, 35% to long-duration TIPS, and 15% to long duration Treasuries. The fund will rebalance on a quarterly basis and will have a gross expense ratio of 0.53%. Additional information may be found at rparetf.com.
About ARIS Consulting
Helmed by Alex Shahidi and Damien Bisserier, Advanced Research Investment Solutions (ARIS) was built upon the foundational idea that a deep-rooted understanding of markets and economies is at the core of successful investing. Founded in 2014 in Los Angeles, California, the firm manages over $12 billion in client assets. ARIS believes that combining diverse sources of return can help clients achieve greater consistency of performance. The firm focuses on developing innovative investment solutions to enable more efficient portfolio management. Additional information may be found at arisconsulting.com.
About Tidal ETF Services
Formed by ETF industry pioneers and thought leaders, Tidal sets out to disrupt the way ETFs have historically been developed, launched, marketed and sold. With a transparent, partnership approach, Tidal offers a comprehensive suite of services, proprietary tools, and methodologies designed to bring lasting ideas to market. As advocates for ETF innovation, Tidal helps institutions and organizations launch the most interesting and viable ETFs available today. For more information, visit tidaletfservices.com.
Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus. A prospectus may be obtained by visiting rparetf.com or calling 833-540-0039. Please read the prospectus carefully before you invest.
As with all ETFs, Fund shares may be bought and sold in the secondary market at market prices. The market price normally should approximate the Fund's net asset value per share (NAV), but the market price sometimes may be higher or lower than the NAV. The Fund is new with a limited operating history. There are a limited number of financial institutions authorized to buy and sell shares directly with the Fund; and there may be a limited number of other liquidity providers in the marketplace. There is no assurance that Fund shares will trade at any volume, or at all, on any stock exchange. Low trading activity may result in shares trading at a material discount to NAV.
The Fund's exposure to investments in physical commodities may fluctuate rapidly and subjects the Fund to greater volatility than investments in traditional securities, such as stocks and bonds. Interest payments on TIPS are unpredictable and will fluctuate as the principal and corresponding interest payments are adjusted for inflation. Equity securities, such as common stocks, are subject to market, economic and business risks that may cause their prices to fluctuate. The Fund invests in foreign and emerging market securities which involves certain risks such as currency volatility, political and social instability and reduced market liquidity. The Fund may invest in securities issued by the U.S. government or its agencies or instrumentalities. There can be no guarantee that the United States will be able to meet its payment obligations with respect to such securities.
Diversification does not ensure a profit or protect against loss in declining markets.
Shares of the Fund are distributed by Foreside Fund Services, LLC.
SOURCE ARIS Consulting