The Riskalyze Report: Advisors Make a Rate Bet

At the request of so many investment advisors, my friends at Riskalyze share the big trends in the assets going into and coming out of advisor portfolios every week. The underlying data is aggregated from hundreds of thousands of client accounts across the $120 billion and counting that advisors manage on the Riskalyze platform*. I hope we can uncover interesting trends for you each week…


May 22nd – 28th

Winners (advisor flows TO these investments increased substantially):
  1. Managed Futures (AQMIX)
  2. Floating Rate (OOSYX)
  3. Inflation Protected Bond (TIP)

Losers (advisor flows FROM these investments increased substantially):

  1. Global Bond (TPINX, BNDX)
  2. US Large Cap (VOO, DIA)
  3. Emerging Markets (EEM)

Josh here – last week was an interesting one for advisor buying and selling in the portfolios they manage. These weren’t big moves, as Riskalyze CIO Mike McDaniels notes that advisor use of the “winners” rose 5% and their use of the losers declined by 5% week over week.

Even still, let’s look at what was added and subtracted. Traditional portfolio stalwarts, like global bonds and US large caps were on the wane, as was the vanilla emerging markets ETF.

In the winners column, we see TIPS and floating rate funds added – both bets that inflation and interest rates will be rising. June’s Fed meeting is gradually looking more and more like it will be the first rate hike since December kicked off the cycle.

The most added product, a managed futures fund run by Cliff Asness’s AQR, is a $12.2 billion vehicle with a 1.22% expense ratio. Managed futures is largely a technically-driven momentum strategy. AQR describes their approach thusly:

We invest in over 100 liquid futures and forwards contracts, both long and short, across global equities, fixed income, currencies and commodities. Trades are executed based on trend-following signals that aim to go long rising markets and short falling markets.

By establishing “long” positions in assets that we believe will rise in price, and “short” positions for assets that are expected to decline in price, this Fund seeks to benefit from both up and down price movements.

I’m not sure if I would definitively lump in managed futures as a rate bet, a la TIPS and floating rate bonds, but it certainly could be. 16% of the portfolio, as of the end of Q1, was engaged in commodity trades, while 30% was involved in currency bets.

*(to state the obvious, Riskalyze does not share client sensitive data with me or use animals in testing).

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web
  1. bitcoin loophole reviews commented on Sep 25

    … [Trackback]

    […] Here you can find 56082 more Information on that Topic: […]

  2. Online smoke shop commented on Oct 30

    … [Trackback]

    […] Find More Information here on that Topic: […]

  3. 안전놀이터 commented on Dec 01

    … [Trackback]

    […] Read More on on that Topic: […]

  4. entrar commented on Dec 04

    … [Trackback]

    […] There you will find 46969 additional Info on that Topic: […]

  5. regression testing commented on Dec 20

    … [Trackback]

    […] Here you will find 90245 more Info to that Topic: […]

  6. cbd for anxiety commented on Jan 02

    … [Trackback]

    […] Info to that Topic: […]

  7. wigs for women commented on Jan 14

    … [Trackback]

    […] Info to that Topic: […]