LOS ANGELES, CA, Jan 19, 2021 – Wealth management and consulting firm Advanced Research Investment Solutions (ARIS) today announced that the RPAR Risk Parity ETF (NYSE: RPAR) has gathered more than $1 billion in assets in less than 13 months since its launch to become one of the largest alternative ETFs in the country[1]. ARIS recently merged with Evoke Advisors and the combined firm has more than $17 billion in assets under management[2].
RPAR seeks equity-like returns over the long run with controlled risk. It attempts to provide investors with lower-cost and tax-efficient access to an investment strategy that has traditionally been used by sophisticated institutional investors. The fund aims to generate positive returns during periods of economic growth, preserve capital during periods of economic contraction, and preserve real rates of return during periods of heightened inflation.
“We launched RPAR because we see far too many investors making the same mistake in their portfolios: poor balance due to overexposure to equities,” said Alex Shahidi, Managing Partner and Co-Founder of ARIS Consulting. “The danger of such investment strategies became even clearer to many investors over the last year due to historic market volatility and turbulent economic and political news,” he said. “Our goal is to provide investors a way to diversify their risk exposure in a tax-efficient and low-cost way, while also capturing market upside.”
2020 presented a real-life stress test for RPAR. During the first quarter, RPAR was down only 4%. By minimizing losses during the initial COVID-19 related economic shock, RPAR demonstrated resilience during one of the steepest stock market declines in history. The fund finished the year up over 19% also showing its ability to participate in market rallies.[3]
The fund has a 0.53% gross expense ratio and tracks the Advanced Research Risk Parity Index by diversifying its allocations among four asset classes: equities, commodities, Treasury bonds, and Treasury inflation-protected securities (TIPS). By allocating equal risk to each of these diverse market segments and structuring each to achieve an equity-like return, the balanced mix can earn attractive returns with managed risk overtime.
“Our goal is to provide investors with deeply researched and thoughtful approaches to investing,” said ARIS Managing Partner and Co-Founder Damien Bisserier. “We launched RPAR because the strategies that we believe are best suited for navigating exogenous and unexpected risks aren’t easily accessible to individual investors at a reasonable cost,” he said.
Before co-founding ARIS with Mr. Shahidi, Mr. Bisserier was a Senior InvestmentAssociate at Bridgewater Associates, one of the world’s largest alternative asset management firms renowned for its “All Weather” risk parity strategy.Before ARIS, Mr. Shahidi managed institutional client assets at Merrill Lynch.
Additional information found at rparetf.com.
*Since inception returns are annualized since the RPAR Risk Parity ETF inception (12/12/19) through 12/31/20.
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Performance current to the most recent month-end can be obtained by calling (833) 540-0039.
Short term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not be made based solely on returns. Only returns greater than one year will be annualized.
A fund's NAV is the sum of all its assets less any liabilities, divided by the number of shares outstanding. The market price is the most recent price at which the fund was traded. It is not possible to invest directly in an index.
Advanced Research Investment Solutions (ARIS), co-founded by Alex Shahidi and Damien Bisserier in 2014, was built upon the foundational idea that a deep-rooted understanding of markets and economies is at the core of successful investing. The firm merged with Evoke Advisors in 2020 and combined manages more than $17 billion in client assets[4]. 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 evokeadvisors.com.
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.
MEDIACONTACTS:
FrankTaylor/Tom Vogel
frank@dlpr.com
tom@dlpr.com
[1] etf.com.
[2] As of 12/31/20. Both ARIS and Evoke Advisors are controlled by Evoke Holdings and as such, are affiliated entities. Both firms are independently registered with the Securities & Exchange Commission, and the assets under management reflected herein are a consolidation of the managed assets of both firms.
[3] Bloomberg as of 12/31/20.
[4] As of 12/31/20. Both ARIS and Evoke Advisors are controlled by Evoke Holdings and as such, are affiliated entities. Both firms are independently registered with the Securities & Exchange Commission, and the assets under management reflected herein are a consolidation of the managed assets of both firms.
By clicking on any of the links on this webpage you will be leaving the Evoke/ARIS website. These links may contain information concerning investments, products or other information. Evoke/ARIS is not responsible for the accuracy or completeness of information on non-affiliated websites and does not make any representation regarding the advisability of investing in any investment product or vehicle. Importantly, Evoke/ARIS is not compensated for linking you to any non-affiliated website. The material available on non-affiliated websites has been produced by entities that are not affiliated with Evoke/ARIS. Descriptions of, references to, or links to products or publications within any non-affiliated linked website does not imply endorsement or recommendation of that product or publication by Evoke/ARIS. Any opinions or recommendations from non-affiliated websites are solely those of the independent providers and are not the opinions or recommendations of Evoke/ARIS, which is not responsible for any inaccuracies or errors.
THIS INFORMATION IS NOT AN OFFER TO BUY OR A SOLICITATION TO SELL ANY SECURITY OR INVESTMENT PRODUCT. SUCH AN OFFER OR SOLICITATION IS MADE ONLY BY THE SECURITIES’ OR INVESTMENT PRODUCTS’ ISSUER OR SPONSOR THROUGH A PROSPECTUS OR OTHER OFFERING DOCUMENTATION.