By Justin Sibears, Newfound Research Generally speaking, risk parity portfolios attempt to diversify across asset classes and strategies by risk contribution as opposed to dollar allocation. The classic argument for risk parity typically begins by noting that many traditional portfolios (e.g. the 60/40 or "balanced" portfolio) are dominated by equity risk. A risk parity approach, on [...] Read more on ETFtrends.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
