πππ$iShares Core 60/40 Balanced Allocation ETF(AOR)$ is a simple way to build a diversified core portfolio focused on a balanced allocation of 60% in equities and 40% in bonds in just 1 powerful ETF. 60/40 has long been the Gold standard for balanced long term investing.
Why 60/40 Is The Gold Standard?
Growth + Stability : Stocks for appreciation, bonds for income and downside protection.
Diversification : Historically when stocks go up, bonds go down, smoothing returns.
Simplicity : Easy to implement, rebalance and scale across life stages.
According to iShares, AOR holds a portfolio of ETFs representing about 6,000 stocks and 14,000 bonds. This is a "all in one" ETF. This helps investors to maximise their time in the market, which plays a vital role toward long term success in investing.
AOR Holdings include $iShares Core S&P 500 ETF(IVV)$
AOR has a low expense ratio of only 0.15%. It also has a substantial Assets Under Management of USD 2.927 billion.
Distributions are paid every 3 months. The current distribution yield is 2.54%. The next distribution is due in December 2025.
AOR has received a 4 star Morningstar rating and a Silver Medalist rating.
Performance wise AOR is up 12% year todate and in the past 12 months, it has risen 10%.
Concluding Thoughts
AOR is not a flashy kind of ETF but it is reliable. It is ideal for hands off investors who want a one stop diversified portfolio as it does the heavy lifting by balancing between growth and stability. AOR is less volatile compared to pure equity ETFs due to the bond allocation but is still exposed to market swings.
Diversification is the soul of a successful portfolio especially in a world fraught with geopolitical tensions and volatility is the new normal.
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