AOA ETF

AOA iShares Core Aggressive Allocation ETF offers a balanced, low-cost, and globally diversified portfolio, ideal for a "set it and forget it" investment strategy. The ETF's 80/20 equity to fixed income split reduces volatility and drawdown, making it suitable for investors wary of market fluctuations. AOA's expense ratio of 0.15% is competitive, avoiding high fees associated with actively managed funds, enhancing long-term returns.

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.

Market volatility increased significantly in the past few weeks due to concerns about rising inflation, uncertainty surrounding the timing of Federal Reserve interest rate cuts, and escalating geopolitical tensions in the Middle East. These factors have made investors nervous, prompting them to reassess their investment portfolios.

The iShares Core Aggressive Allocation ETF is a fund that invests in a mix of global equities and bonds using an 80/20 allocation model. With approximately 35% exposure to foreign securities, the AOA ETF carries some currency risk. While AOA has outperformed other multi-asset tactical ETFs, strategies that rely on the negative correlation between stocks and bonds may be unreliable.

iShares Core Aggressive Allocation ETF is a one-stop shop for balanced portfolio allocations with a diversified investment strategy. The AOA ETF tracks the S&P Target Risk Aggressive Index, appealing to investors with a higher risk tolerance. AOA offers broad market exposure, low expense ratio, and consistently outperforms its peers, making it a potentially rewarding investment option.

One of the biggest reasons investors should consider fund-of-funds ETFs is their simplicity. Sure, you could replicate the holdings of existing top fund-of-funds ETFs.