2024-06-27 14:27:29 ET
Summary
- iShares Core Aggressive Allocation ETF (AOA) has a high expense ratio of 0.15%, but buying its components individually results in a much lower average expense ratio of 0.044%.
- The fixed income component of AOA, specifically iShares Core Total USD Bond Market ETF (IUSB), has a high duration of 5.8 years, making it sensitive to interest rate changes and inflation.
- AOA's equity component is driven by AI excitement.
- While we aren't sure about the equity component, we are quite confident that we'd want to avoid the fixed income component. The expense ratio is the final nail.
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AOA: Higher Expense Ratio Than Average Of Parts