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Old-school portfolios shine as risk parity struggles

There have been a lot of naysayers about the old-fashioned 60/40 portfolio, but this year is proving that it is hard to improve on a classic. The $19.5 billion Vanguard Balanced Index Fund (VBINX) which maintains a boring 60% allocation to the total U.S. stock market and a 40% allocation to the Barclays U.S. Aggregate Bond Index, and re-balances regularly, was up 5.48% this year through June 24, while risk parity, a popular alternative, is underwater.