Author Topic: Anyone investing in Balanced ETFs VS 3-Fund?  (Read 536 times)

bizkitgto

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Anyone investing in Balanced ETFs VS 3-Fund?
« on: July 31, 2018, 01:33:12 PM »
I found some information on them in Bogleheads. Anyone using them? Any advice? I think this may be easier as it rebalances for you. Thoughts?

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A handful of ETFs-of-ETFs:

- AOA - iShares Core Aggressive Allocation ETF - 40% US equities, 40% international equities, 16% US bonds, 4% international currency-hedged bonds

- AOR - iShares Core Growth Allocation ETF - 30% US equities, 30% international equities, 32% US bonds, 8% international currency-hedged bonds

- AOM - iShares Core Moderate Allocation ETF - 20% US equities, 20% international equities, 50% US bonds, 10% international currency-hedged bonds

- AOK - iShares Core Conservative Allocation ETF - 15% US equities, 15% international equities, 60% US bonds, 10% international currency-hedged bonds

- GAL - SPDR SSGA Global Allocation ETF - 35% US equities, 40% international equities, 20% US bonds (including high-yield, cash, and TIPS), 2% international bonds, 3% commodities

- GAA - Cambria Global Asset Allocation ETF - 30% US equities (tilted to small, value, momentum), 25% international equities (tilted to value), 28% US bonds (including high-yield and TIPS), 10% international bonds (including inflation-protected and high-yield), 7% commodities

Of these, I'd go with the iShares. GAL and GAA hold 20+ underlying assets, and a lot of them seem unnecessary to me, such as the high-yielding bonds. (GAA's holdings make more sense, since it at least has factor tilts, but it also has few assets under management, at about $60 million.)

Indexer

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Re: Anyone investing in Balanced ETFs VS 3-Fund?
« Reply #1 on: July 31, 2018, 08:26:50 PM »
I still prefer total market index funds, better for building a tax efficient portfolio.

Balanced funds = stocks and bonds in the same fund = not tax efficient.