The third benchmark portfolio, tracked mainly to contrast it with other aggressive portfolios: the Levered Butterfly and the RPC Growth portfolio. It represents the highest volatility that the average investor is comfortable with and is usually only the strategy of those far from retirement.
This one adds a bit of punch compared to its Golden cousin by adding in leveraged assets. It projects to be one of the best test portfolios: with the highest safe and perpetual withdrawal rates and volatility equivalent to the moderate 80/20 portfolio.
Named after the investment pro who coined the term “risk parity,” the Qian portfolio is my version of the mathematically precise Risk Parity asset allocation Edward Qian proposes in his book. It belongs in the moderate portfolio grouping, along with the 80/20 and the Levered Butterfly.
Another benchmark portfolio, the 80/20 takes some of the allocation to bonds in a 60/40 and puts them in non-US equities instead. This is a traditional asset mix for investors seeking moderately high returns, while still maintaining some measure of stability.
One of the two original portfolios, this one uses a modest amount of leverage to create space for allocations to more assets which produce dividends. Even with all this leverage, it projects to have the same volatility as the Classic 60/40! (and higher returns!!).