TY - JOUR T1 - Component Risk Parity: <em>Using Traditionally Weighted Indexes in an Equal Risk Fashion</em> JF - The Journal of Index Investing SP - 82 LP - 87 DO - 10.3905/jii.2016.6.4.082 VL - 6 IS - 4 AU - Joe Staines Y1 - 2016/02/29 UR - https://pm-research.com/content/6/4/82.abstract N2 - In this article, I present a framework for sizing investments in non-risk-weighted indexes to satisfy risk budgeting objectives. A number of measures of index diversification are considered, and are then used to size allocations. I present an application to equity indexes, with encouraging results.TOPICS: Mutual funds/passive investing/indexing, equity portfolio management ER -