Any ETFs that resemble a balanced index or target fund?

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rgs92
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Joined: Mon Mar 02, 2009 7:00 pm

Any ETFs that resemble a balanced index or target fund?

Post by rgs92 »

I was curious if there were any ETFs out there that would resemble a low-cost balanced index fund or, similarly, low cost target fund.
With all the ETFs out there, I don't think I've ever seen this.

I could see using this for part of a portfolio that was used for income, or variable income where you wanted to withdraw at will w/o being subject to short-term trading fees that mutual funds have (and wanted to draw based on an asset allocation to avoid market timing).

Mutual funds are OK for taking out income, but if you contribute to the same fund at any time, then you are subject to a fee if you take anything out within 30 days or the like.
livesoft
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Re: Any ETFs that resemble a balanced index or target fund?

Post by livesoft »

Yes, there are. Your broker should have a screener.

AOR
GAL

are two that I found easily.
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Topic Author
rgs92
Posts: 3436
Joined: Mon Mar 02, 2009 7:00 pm

Re: Any ETFs that resemble a balanced index or target fund?

Post by rgs92 »

Thanks livesoft. I don't have a broker, just Fidelity. I actually tried to look this up with Fidelity but somehow missed it, so thanks!
Wow! GAL has a .01% expense ratio. Thanks.

GAL = SPDR SSgA Global Allocation ETF

OK, I must be extra stupid today. I just Googled and found this page:

https://money.usnews.com/funds/etfs/balanced
[AOM, AOK, and more in this article.]

Thanks again livesoft.
Dominic
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Re: Any ETFs that resemble a balanced index or target fund?

Post by Dominic »

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.)
Last edited by Dominic on Fri Mar 02, 2018 2:03 pm, edited 1 time in total.
livesoft
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Re: Any ETFs that resemble a balanced index or target fund?

Post by livesoft »

rgs92 wrote: Fri Mar 02, 2018 1:27 pmI don't have a broker, just Fidelity.
That statement made me laugh out loud! Thanks! (I think it might be a good advertising blurb for Vanguard though. :twisted:)

(Also: I don't think that e.r. for GAL is really that low.)
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Dominic
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Re: Any ETFs that resemble a balanced index or target fund?

Post by Dominic »

livesoft wrote: Fri Mar 02, 2018 2:02 pm
rgs92 wrote: Fri Mar 02, 2018 1:27 pmI don't have a broker, just Fidelity.
That statement made me laugh out loud! Thanks! (I think it might be a good advertising blurb for Vanguard though. :twisted:)

(Also: I don't think that e.r. for GAL is really that low.)
I'm seeing a 0.25% expense ratio for GAL, and I don't know if that includes the underlying funds' expenses.
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