The Risk Parity portfolio

Risk Parity Investing: A New Allocation Model Is Here
Excerpts:

"At its core, risk parity does two things; it targets a specific level of risk, then it divides that risk equally across four component parts of the portfolio to achieve true diversification," Partridge says in the attached video. Compared to a plain vanilla stocks and bonds portfolio where he says a 60% allocation of stocks drives about 95% of the returns and volatility, a risk parity investor's holdings will look totally different.

... Investors can purchase mutual funds that offer this strategy, including one from partridges own firm Salient (SRPFX) as well as several other reputable fund managers like AQR and Invesco (IVZ). In fact, Partridge says, individuals can capture most of the benefits of risk parity investing by simple putting 25% of their funds into four different ETFs that match its key asset classes, such as the S&P 500 SPDR (SPY), the iShares Corporate Bond ETF (LQD), a Treasury ETF (TLT) and a Commodity ETF (DCB). By doing so, he says investors of all ages and levels on the risk scale can be in a ''perfectly diversified portfolio that's optimal" for all investors. ..

Comment: One can forget buying SRPFX because per Yahoo finance the minimum purchase is $ 1,000,000. My spreadsheet shows a $ 100,000 risk parity portfolio ... could be scaled up or down (eg. $ 10,000). I have none of the equities mentioned. I did set up a Yahool portfolio to track (my hypothetical $ 100 Grand). I'll try to revisit in the future to compare to today's prices.