Risk parity portfolio with mutual funds?

Why would you do that or even want to do that? That is like trying to use a blackberry from 2009 in 2026 when you don't have to. Fidelity has no fee trading and fractional shares for all ETFs today, and that is what you should be using in this era. And put away the fax machines too.

Explain to us why you think this is a necessary or worthwhile endeavor before anyone wastes any time with it. Otherwise use ETFs. Fidelity now even has a managed futures ETF (FFUT), although it has not been around long enough to assess it.

As for off-the-shelf risk parity all-in-one funds like FAPSX, ALLW, RPAR, etc., I would not use them because they are not designed for any purpose you care about, and you want to be able to set and rebalance the individual components in accordance with your own plans.

Happy to help, but this approach is kind of silly and completely unnecessary.

CORRECTION AND APOLOGY. I see your problem now -- that you cannot use ETFs yet. This is a great use of AI actually. Just ask your favorite one which Fidelity mutual funds are closest to the ETFs you seek to replicate and then use Morningstar to verify that they are invested in similar things.

But you should be evaluated all of your assets together and treating it like one big portfolio. So all of your bonds will stay in the 401k and you can use other accounts to invest in alternatives and other assets not available in the 401k. Do not treat each account like a separate portfolio, as you want to also optimize for tax location.

I’ve had to do similar just going off of what my 401k offers and talked with Frank on the subject. Since you’re only a few years out of leaving the goal as you mentioned is derisk, not necessarily full golden butterfly / ratio. If you even did 60% equities split, 20% LT, 20% ST, you’ll be derisked. Do you have any brokerage or IRA that you can use for managed futures / gold? As you should look at your complete portfolio and not just 401k. Maybe just put new money into gold / futures to build that up.

I'm in a similar situation. I use what's available in my 401k to get me closer to my target allocation and I just accept I won't have precisely the allocation I want until I can rollover some 401k money into an IRA. In the 401k I hold:

• FISVX - US small-cap value
• FIVLX - International value
• FSPGX - US large-cap growth
• FNBGX - US L/T treasuries
• VMRXX - Vanguard MMF

The international value fund is weighted toward large-cap when what I really want is international SCV, but value is the more important factor to me so that's a compromise.

I hold my cash allocation in the 401k because I'm retiring next year and want the cash already allocated. The Vanguard MMF in my plan has a slightly higher yield than Fidelity MMFs.

I also struggled with whether or not to hold FSAGX for gold. Ultimately I decided I would hold some gold ETFs in my taxable account even though the amount is below my target allocation. I will wait to top off my allocation until I can roll into an IRA.

FSAGX is reasonably positively correlated with GLDM (0.83) and reasonably negatively correlated with US LCG/SCV (0.3 both since 2019), so I don't think it would derail your plans to compromise with FSAGX if that's your choice.

Managed futures will have to wait for an IRA since I don't want to hold that in my taxable account, don't want to use Roth IRA space for it and Fidelity doesn't have a suitable mutual fund. You could hold commodities as a substitute though Fidelity also doesn't have a low-cost mutual fund for that.

I would say do what you can to move your allocation closer to your target without trying to make it perfect now. If you have savings in a taxable account, IRA, HSA, hold in those accounts what you cannot get in the 401k.

Interesting that the brokerage link can't use ETFs. My 401k has the brokerage link and basically can buy anything that a standard fidelity account can.

Why the Golden Butterfly vs Golden Ratio? You say you'll have your 401k for a few more years. Why? Yes, 401ks only have mutual funds. When you roll that over to a Traditional IRA, ETFs will become available. Along with infinite options. Focus on Asset Classes and what you CAN get within your plan. Something like Large Cap Growth will be available there. If Rith is the best available space for Gold, etc, that's where it has to go.