IDEV - AOA: Passive Bond-Equity Allocations Are Questionable

2024-04-15 13:04:45 ET

Summary

• iShares Core Aggressive Allocation ETF is a fund of funds implementing a 80/20 allocation model in global equities and bonds.
• The AOA ETF has an exposure to foreign securities of about 35%, which implies some currency risk.
• AOA has performed well compared to other multi-asset tactical ETFs, but strategies based on the negative correlation of stocks and bonds are questionable.

AOA strategy

iShares Core Aggressive Allocation ETF ( AOA ) started investing operations on 11/04/2008 and tracks the S&P Target Risk Aggressive Index. It is a fund of funds with 7 holdings, a 12-month trailing yield of 2.09% and a net expense ratio of 0.15%. Distributions are paid quarterly....

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