U.S. Balanced Allocation

U.S. Balanced Allocation funds are mutual funds or ETFs that own a... U.S. Balanced Allocation funds are mutual funds or ETFs that own a diversified portfolio of U.S. assets. These funds typically own a mix of equities, fixed-income, and cash, and can also own, depending on their mandate, commodities (such as gold), as well as derivatives. These funds tend to be actively managed, with professional managers using both quantitative and qualitative approaches to best determine the ideal basket of assets at any one time. These funds are geared towards investors who are at least reasonably risk-tolerant. Typically, a fund will be around 60% equities and 40% bonds. This is a lower equity weighting than a Growth or Growth/Balanced fund, which may appeal to somewhat more conservative investors. These funds can help retirees meet their goals. These funds tend to be managed with the assumption that a diversified portfolio of different asset classes will produce the best risk-adjusted returns over the long term. Due to their slightly higher weightage on equities, conservative investors might approach these funds with caution. Additionally, given that they only own U.S. assets, these funds will tend to outperform when U.S. equities outperform International equities, and vice versa. Last Updated: 01/27/2025 View more View less

U.S. Balanced Allocation funds are mutual funds or ETFs that own a diversified portfolio of U.S. assets. These funds typically own a mix of equities, fixed-income, and cash, and can also own, depending... U.S. Balanced Allocation funds are mutual funds or ETFs that own a diversified portfolio of U.S. assets. These funds typically own a mix of equities, fixed-income, and cash, and can also own, depending on their mandate, commodities (such as gold), as well as derivatives. These funds tend to be actively managed, with professional managers using both quantitative and qualitative approaches to best determine the ideal basket of assets at any one time. These funds are geared towards investors who are at least reasonably risk-tolerant. Typically, a fund will be around 60% equities and 40% bonds. This is a lower equity weighting than a Growth or Growth/Balanced fund, which may appeal to somewhat more conservative investors. These funds can help retirees meet their goals. These funds tend to be managed with the assumption that a diversified portfolio of different asset classes will produce the best risk-adjusted returns over the long term. Due to their slightly higher weightage on equities, conservative investors might approach these funds with caution. Additionally, given that they only own U.S. assets, these funds will tend to outperform when U.S. equities outperform International equities, and vice versa. Last Updated: 01/27/2025 View more View less