Episode 392: Small Cap Value Indexes, Managed Futures Butterly, And A Mini-Rant On Bucketeering

Risk Parity Radio

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4M ago 32:54

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In this episode we answer emails from Kyle, Steve and James. We discuss the three most common small cap value indexes -- S&P 600, CRSP and Russell, modifications to the Golden Butterfly portfolio using managed futures, and the fantasies and follies of portfolio Bucketeering.
Links:
Father McKenna Center Donation Page: Donate - Father McKenna Center
Steve's Modified Golden Butterfly: testfol.io/?s=hJZl3QbaXsj
Merriman's Best In Class ETFs: Best-in-Class ETF Recommendations | Merriman Financial Education Foundation
Kitces Article About Bucket Strategies: Managing Sequence Risk: Bucket Strategies Vs Total Return
Amusing Unedited AI-Bot Summary:
Can equal-weighted ETFs outperform their cap-weighted counterparts? Find out as we break down their impact on factor representation within diversified portfolios, focusing on strategies like the Golden Butterfly. Join me, Frank Vasquez, in our latest episode as I discuss listener questions and share insights on choosing between Invesco's RSP and traditional options like SPY or VOO. I'll also revisit my preference for the small-cap value ETF VIOV over VBR, emphasizing the advantages of the S&P 600 index's unique profitability filter. This episode is packed with knowledge to help you refine your portfolio allocation strategies, with a special focus on the role of managed futures and their influence on compound annual growth rates and drawdowns.
Shatter the myth of bucket strategies as we confront their limitations in mitigating sequence of returns risk. Drawing on Bill Bengen's studies, I argue that excessive cash allocations hinder performance more than they help. We explore the psychological allure of bucket strategies and suggest that true financial security lies in prudent spending rather than complex asset arrangements. Tune in as we offer a fresh perspective on managing your financial future, challenging conventional wisdom and emphasizing smarter, evidence-based approaches to portfolio management. Whether you're a seasoned investor or just starting, this episode promises valuable insights and a chance to rethink traditional investment strategies.

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1. Episode 392: Small Cap Value Indexes, Managed Futures Butterly, And A Mini-Rant On Bucketeering (00:00:00)

2. Risk Parity Radio Q&A Episode (00:00:01)

3. Refining Portfolio Allocation Strategies (00:05:07)

4. Avoid the Bucket Strategy Inefficient (00:22:10)

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