Mike Philbrick
Horizons Resolve Adaptive Asset Allocation ETF
HRAA-T
BUY
Nov 15, 2022
An all-purpose ETF for a retired senior, non-RRSP XBAL holds US, Canadian, emerging stocks and Canadian & US bonds. It's globally diversified. In addition to XBAL, he also suggests HRAA (which he manages--disclosure) which is a globally balanced portfolio of stocks, commodities and bonds plus a managed futures overlays. HRAA offers alpha and beta to mitigate downside like the present.
They are a sub-advisor for the fund. It is a globally diversified strategy with advanced diversification and systematic long / short global macro and a dynamic tail protection to provide investors with an all-weather investment.
[Caller wanted a recommendation to invest very long term]HRAA has a component of risk parity in it. It will do well in a liquidity moment. VGRO is also very diversified. Put it away and let it work.
Adaptive allocation focuses on risk parity, minimizing risk by not getting too exposed to one asset class. HRAA gives you access to commodities, currencies as well as derivative products. This manages risk in a choppy market.
Complex product, needs understanding as to how it works. Appropriate as an alternative holding in a 60/40 portfolio, not a standalone investment. Provides some diversification. MER north of 2%, as it acts like a hedge fund.