Liquid Alternatives

Risk Parity 2.0

The S&P Risk Parity 2.0 Indices seek to measure the performance of a multi-asset risk parity strategy that allocates predetermined risk exposure among Treasury-Inflation Protected Securities (TIPS) and futures contracts on equities, nominal bonds and commodities. The indices follow a quantitative approach to assign risk exposure to the asset classes and are leveraged to achieve the predetermined target volatilities.