1Année
I recently took a closer look at the Arero because I'm looking for a single-fund solution for someone. The Arero is already well thought out and scientifically sound. The asset allocation is definitely even broader and more passive than a WorldETF. However: the performance has been gurgling around at about 5%pa since inception. The drawdown in the Coronacrash was as high as in the MSCI World, but the recovery afterwards only about 1/2. In my opinion this has three reasons: 1. no factor investing: Arero invests only GDP based in stocks. Thus, many long-term outperforming factors fall out. The MSCI World at least takes the large cap factor. 2. Frequent rebalancing between asset classes. When stocks do well, they are sold. As a result, Arero systematically fails to take full advantage of equity booms or commodity booms. On the way down, on the other hand, they are always added to, which also systematically leads to underperformance during longer downward phases. 3. The asset allocation (60-25-15) is outdated. I once did a backtest back to 1995 with the Arero allocation. Until 2008, this allocation was actually far superior to the WorldEtf, 2%pa better performance, half the drawdown. Since then the allocation provides 3%pa worse performance with similar drawdown. My guess is that the Arero allocation is optimized for the 1995-2008 data set. Known effect. Unfortunately not reflected at all by the creators of the Arero. Conclusion: It may of course be that the Arero catches up again in the 10 years, but it does not look like that right now. All in all, Arero is perhaps not as convincing as it looks at first glance.
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1Année
@Epi I can only underline. Have the AERO - The World Fund of ... (HVJD) in a model comparison portfolio since 12/10/2021. Current status: -5.78%.
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