WEALTHFRONT RISK PARITY FUND
Name
As of 10/10/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
Vitals
YTD Return
8.6%
1 yr return
18.8%
3 Yr Avg Return
-2.3%
5 Yr Avg Return
-1.2%
Net Assets
$1.33 B
Holdings in Top 10
89.6%
52 WEEK LOW AND HIGH
Expenses
OPERATING FEES
Expense Ratio 0.25%
SALES FEES
Front Load N/A
Deferred Load N/A
TRADING FEES
Turnover 0.00%
Redemption Fee N/A
Min Investment
Standard (Taxable)
$5,000,000
IRA
N/A
Fund Classification
Fund Type
Open End Mutual Fund
Name
As of 10/10/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
WFRPX - Profile
Distributions
- YTD Total Return 8.6%
- 3 Yr Annualized Total Return -2.3%
- 5 Yr Annualized Total Return -1.2%
- Capital Gain Distribution Frequency N/A
- Net Income Ratio -0.21%
- Dividend Yield 5.5%
- Dividend Distribution Frequency Quarterly
Fund Details
-
Legal NameWEALTHFRONT RISK PARITY FUND
-
Fund Family NameWealthfront
-
Inception DateJan 22, 2018
-
Shares OutstandingN/A
-
Share ClassW
-
CurrencyUSD
-
Domiciled CountryUS
-
ManagerAlex Michalka
Fund Description
The Fund seeks to achieve its investment objective by allocating its assets among a broad range of asset classes (including but not limited to global developed and emerging market equities, global developed and emerging markets fixed income, real estate investment trusts (REITs), treasury inflation-protected securities, and commodities). The Fund will generally have some level of investment in most of these asset classes but there is no stated limit on the percentage of assets the Fund will allocate to a particular asset class. The Fund’s exposure to these asset classes will be achieved principally through investments in exchange-traded funds (“ETFs”) and in derivative instruments such as total return swaps, as discussed further below. Because the Fund will gain exposure to global developed and emerging markets fixed income asset classes either through ETFs or through total return swaps that reference relevant ETFs, the Fund’s investments in fixed income instruments may be of any duration, maturity and quality.
The Adviser will use proprietary portfolio construction methodologies to assemble a diversified portfolio that targets an annualized volatility for the Fund of 12%, but the Fund’s actual volatility level for longer or shorter periods may be materially higher or lower than the target depending on market conditions. Volatility measures the range of returns of a security, fund or index, as indicated by the annualized standard deviation of its returns. Higher volatility generally indicates higher risk and is often reflected by frequent and sometimes significant movements up and down in value. A volatility target does not provide any assurance about the maximum loss for an investor in the Fund.
In allocating assets among the different asset classes, the Adviser seeks to derive approximately equal risk exposures for the Fund from the underlying asset classes based on the Adviser’s assessment of the risk associated with each asset class. This means that lower risk asset classes (such as global fixed income) will generally have higher notional allocations than higher risk asset classes (such as global developed and emerging market equities). Based on the Adviser’s assessment of the Fund’s portfolio risk as well as the prevailing market conditions (such as market volatility), the Adviser will use leverage (through investments in derivative instruments such as total returns swaps) to adjust or to increase the Fund’s exposure to certain asset classes in order to seek higher returns than traditional portfolios at similar risk level, or lower risk at similar return levels. However, there can be no assurance that employing such a strategy will achieve any particular level of return or will reduce volatility or potential loss for the Fund. The Adviser will periodically (at least monthly) reassess the risk of each asset class and their correlations and will rebalance the Fund’s existing asset allocations based on the Adviser’s assessment. The Adviser’s use of derivatives is expected to create aggregate exposure to investments for the Fund in excess of its net assets, thereby leveraging the Fund. It is expected that, on average, the Fund would have a net notional investment exposure of approximately 250% of the Fund’s net assets, although the amount of exposure may be significantly higher or lower at any given time. Through the use of derivatives that have the effect of leverage, the Fund will have the potential for greater gains, as well as the potential for greater losses, than if the Fund did not use derivatives or other instruments that have an economic leveraging effect. Economic leveraging tends to magnify, sometimes significantly depending on the amount of leverage used, the effect of any increase or decrease in the Fund’s exposure to an asset class and may cause the Fund’s net asset value to be more volatile than a fund that does not use leverage. For example, if the Fund gains exposure to a specific asset class through an instrument that provides leveraged exposure to that asset class, and the leveraged instrument increases in value, the gain to the Fund will be magnified; however, if the leveraged instrument decreases in value, the loss to the Fund will also be magnified.
A total return swap is a contract in which a payer and receiver exchange the risks of an underlying asset for the payment of a fee. The payer owns the underlying asset, also called the reference asset, and agrees to pay the receiver the total return on the asset, including its market appreciation and coupons, while the receiver agrees to pay a set rate, which could be fixed or variable. If the reference asset depreciates, the receiver pays the depreciation to the payer because the payer has transferred default risk, credit deterioration risk, market risk, and other risks of the asset to the receiver. The Fund’s exposure to the different asset classes will be achieved principally through investments in either ETFs or in total return swaps, where the Fund will pay a counterparty a set fee in exchange for the total return of a reference asset, sector, industry or sub-industry, which will usually be ETFs that are determined by the Adviser to be representative of a specific asset class. To a lesser extent, the Fund may also invest in other derivative instruments such as forward and futures contracts to also gain exposure to the various asset classes and employ leverage. The Adviser may choose whether to invest in ETFs directly or derivatives of those ETFs based on various factors including the financing cost of a derivative contract, the size and anticipated liquidity of an ETF relative to the Fund’s potential investment, the deteriorating financial condition of a counterparty to a derivative contract, or the overall cost of an investment in derivatives in periods when leverage is not required to achieve the stated volatility target. The inability of the Fund to invest in derivative instruments may prevent it from achieving its investment objective(s).
A significant portion of the assets of the Fund may be invested directly or indirectly in money market instruments, which may include, but are not limited to, short-term U.S. Government securities, U.S. Treasury securities, money market mutual fund shares, and cash and cash equivalents. These cash or cash equivalent holdings serve as margin or collateral for the derivative positions the Fund takes and also earn income for the Fund. The larger the value of the Fund’s derivative positions, the more the Fund will be required to maintain cash and cash equivalents as margin or collateral for such derivatives.
The Fund may engage in active and frequent trading, which may result in frequent portfolio trading and high portfolio turnover.
WFRPX - Performance
Return Ranking - Trailing
Period | WFRPX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 8.6% | -23.7% | 16.4% | 96.78% |
1 Yr | 18.8% | -8.9% | 48.3% | 83.91% |
3 Yr | -2.3%* | -2.2% | 16.4% | 95.55% |
5 Yr | -1.2%* | -0.7% | 13.4% | N/A |
10 Yr | N/A* | 0.9% | 11.8% | N/A |
* Annualized
Return Ranking - Calendar
Period | WFRPX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 0.9% | -40.8% | 20.6% | 43.90% |
2022 | -24.4% | -21.0% | 24.5% | 96.13% |
2021 | 4.4% | -24.2% | 27.8% | 0.47% |
2020 | -6.9% | -23.1% | 11.7% | N/A |
2019 | 27.6% | -100.0% | 20.6% | N/A |
Total Return Ranking - Trailing
Period | WFRPX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 8.6% | -23.7% | 16.4% | 96.78% |
1 Yr | 18.8% | -12.8% | 48.3% | 78.18% |
3 Yr | -2.3%* | -3.4% | 16.4% | 95.41% |
5 Yr | -1.2%* | -1.1% | 13.4% | N/A |
10 Yr | N/A* | 0.9% | 11.8% | N/A |
* Annualized
Total Return Ranking - Calendar
Period | WFRPX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 6.0% | -40.8% | 20.6% | 43.90% |
2022 | -23.4% | -21.0% | 24.5% | 96.13% |
2021 | 7.6% | -24.2% | 27.8% | 0.47% |
2020 | -6.6% | -23.1% | 11.7% | N/A |
2019 | 32.5% | -2.9% | 23.1% | N/A |
NAV & Total Return History
WFRPX - Holdings
Concentration Analysis
WFRPX | Category Low | Category High | WFRPX % Rank | |
---|---|---|---|---|
Net Assets | 1.33 B | 1.12 M | 110 B | 30.67% |
Number of Holdings | 111 | 2 | 10961 | 67.22% |
Net Assets in Top 10 | 1.16 B | -31.7 M | 22 B | 12.94% |
Weighting of Top 10 | 89.56% | 10.8% | 100.0% | 0.70% |
Top 10 Holdings
- B 08/15/24 10.67%
- B 10/17/24 10.58%
- B 08/08/24 10.49%
- B 10/10/24 10.36%
- B 08/01/24 10.12%
- B 09/05/24 9.42%
- B 09/26/24 7.55%
- B 10/03/24 7.13%
- B 08/29/24 6.93%
- B 10/24/24 6.31%
Asset Allocation
Weighting | Return Low | Return High | WFRPX % Rank | |
---|---|---|---|---|
Bonds | 93.70% | -39.76% | 93.84% | 96.03% |
Cash | 1.28% | -97.12% | 185.58% | 100.00% |
Stocks | 0.00% | -45.72% | 98.42% | 97.49% |
Preferred Stocks | 0.00% | -0.03% | 14.00% | 95.20% |
Other | 0.00% | -1.25% | 197.12% | 0.21% |
Convertible Bonds | 0.00% | 0.00% | 25.49% | 95.82% |
Bond Sector Breakdown
Weighting | Return Low | Return High | WFRPX % Rank | |
---|---|---|---|---|
Cash & Equivalents | 1.28% | 0.10% | 100.00% | 1.25% |
Derivative | 0.00% | 0.00% | 41.88% | 93.95% |
Securitized | 0.00% | 0.00% | 83.28% | 93.95% |
Corporate | 0.00% | 0.00% | 99.90% | 98.75% |
Municipal | 0.00% | 0.00% | 31.28% | 91.86% |
Government | 0.00% | 0.00% | 98.64% | 97.91% |
Bond Geographic Breakdown
Weighting | Return Low | Return High | WFRPX % Rank | |
---|---|---|---|---|
US | 93.70% | -177.12% | 87.76% | 95.82% |
Non US | 0.00% | -39.00% | 137.36% | 93.95% |
WFRPX - Expenses
Operational Fees
WFRPX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Expense Ratio | 0.25% | 0.16% | 2.71% | 99.79% |
Management Fee | 0.24% | 0.00% | 1.70% | 19.06% |
12b-1 Fee | N/A | 0.00% | 1.00% | N/A |
Administrative Fee | N/A | 0.01% | 0.70% | N/A |
Sales Fees
WFRPX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Front Load | N/A | 0.00% | 5.75% | N/A |
Deferred Load | N/A | 1.00% | 5.50% | N/A |
Trading Fees
WFRPX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Max Redemption Fee | N/A | 2.00% | 2.00% | N/A |
Related Fees
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
WFRPX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Turnover | 0.00% | 0.00% | 441.00% | 0.72% |
WFRPX - Distributions
Dividend Yield Analysis
WFRPX | Category Low | Category High | WFRPX % Rank | |
---|---|---|---|---|
Dividend Yield | 5.45% | 0.00% | 10.92% | 92.10% |
Dividend Distribution Analysis
WFRPX | Category Low | Category High | Category Mod | |
---|---|---|---|---|
Dividend Distribution Frequency | Quarterly | Annually | Monthly | Monthly |
Net Income Ratio Analysis
WFRPX | Category Low | Category High | WFRPX % Rank | |
---|---|---|---|---|
Net Income Ratio | -0.21% | -5.20% | 6.33% | 96.51% |
Capital Gain Distribution Analysis
WFRPX | Category Low | Category High | Capital Mode | |
---|---|---|---|---|
Capital Gain Distribution Frequency | Annually | Annually | Annually |
Distributions History
Date | Amount | Type |
---|---|---|
Jul 30, 2024 | $0.116 | OrdinaryDividend |
Apr 29, 2024 | $0.102 | OrdinaryDividend |
Dec 13, 2023 | $0.087 | OrdinaryDividend |
Oct 30, 2023 | $0.101 | OrdinaryDividend |
Jul 28, 2023 | $0.099 | OrdinaryDividend |
Apr 27, 2023 | $0.101 | OrdinaryDividend |
Dec 14, 2022 | $0.060 | OrdinaryDividend |
Oct 28, 2022 | $0.038 | OrdinaryDividend |
Jul 28, 2022 | $0.006 | OrdinaryDividend |
Dec 15, 2021 | $0.316 | CapitalGainLongTerm |
Apr 29, 2020 | $0.004 | ReturnOfCapital |
Apr 29, 2020 | $0.025 | OrdinaryDividend |
Dec 16, 2019 | $0.025 | OrdinaryDividend |
Dec 16, 2019 | $0.221 | CapitalGainLongTerm |
Oct 30, 2019 | $0.041 | OrdinaryDividend |
Jul 30, 2019 | $0.048 | OrdinaryDividend |
Apr 29, 2019 | $0.055 | OrdinaryDividend |
Dec 20, 2018 | $0.037 | OrdinaryDividend |
Oct 30, 2018 | $0.038 | OrdinaryDividend |
Jul 30, 2018 | $0.031 | OrdinaryDividend |
Apr 27, 2018 | $0.006 | OrdinaryDividend |
WFRPX - Fund Manager Analysis
Managers
Alex Michalka
Start Date
Tenure
Tenure Rank
Jun 10, 2019
2.98
3.0%
Alex Michalka, Ph.D, has served as Director of Investments of Wealthfront since May 2019. Dr. Michalka earned a B.A. in Applied Mathematics from the University of California, Berkeley, and a Ph.D. in Operations Research from Columbia University. Prior to Wealthfront, Dr. Michalka has held quantitative research positions at AQR Capital Management and The Climate Corporation.
Tenure Analysis
Category Low | Category High | Category Average | Category Mode |
---|---|---|---|
0.03 | 30.27 | 6.52 | 9.25 |