Best Mixed-Asset ETFs
A full stock-bond portfolio in a single ticker
ETFs tracked
66
Avg TER
0.63%
Median CAGR 3Y
+13.7%
Mixed-asset ETFs hold a pre-built combination of stocks and bonds — sometimes plus alternatives — in a single fund. The classic iShares Core Allocation range (AOA 80/20 aggressive, AOR 60/40 moderate, AOM 40/60 conservative, AOK 30/70 very conservative) delivers an entire three-asset portfolio at 0.15% expense ratio with automatic rebalancing. These funds exist to let investors hold one ticker instead of managing allocation themselves.
The classic 60/40 reference (VTI + BND, or AOR as an all-in-one) delivered roughly 8% annualized with 12% volatility over 1995–2024, with drawdowns capped near 25% during the worst equity bear markets. That's materially less return than 100% equities (~10% annualized) but roughly half the peak-to-trough drawdown, which is why 60/40 has been the default retirement-glide-path target for decades.
The case for mixed-asset ETFs over a DIY stock-bond split is operational simplicity: no rebalancing, no tax-loss-harvesting drift, no drifting allocation during prolonged bull or bear markets. The case against is cost (0.15% for an all-in-one vs. 0.03% for VTI + BND separately) and inflexibility (you can't tax-loss harvest just the bond sleeve).
Beacon ranks mixed-asset ETFs on allocation, cost, and quality score. The top picks are diversified, cheap, and liquid enough for long-term buy-and-hold holdings.
Who this is for
- Investors who want one-ticker simplicity for a long-term portfolio
- Retirement accounts where manual rebalancing is an obstacle
- Not suitable for investors who want to customize allocation or tax-loss harvest individual sleeves
Top 10 ETFs
Browse all 66 mixed-asset ETFs
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Open screenerFrequently asked questions
- What is a mixed-asset ETF?
- A mixed-asset ETF (also called an allocation or balanced ETF) holds a preset mix of stocks and bonds — sometimes plus alternatives like commodities. The fund rebalances automatically, so the stock-bond split stays close to the target. Examples include iShares AOA (80/20), AOR (60/40), and AOM (40/60).
- Is a 60/40 allocation still relevant after 2022?
- 2022 was the first year since the 1970s where both stocks and bonds fell significantly, which shook faith in 60/40. But over longer windows (1995–2024), a 60/40 portfolio has still delivered attractive risk-adjusted returns. The structure works because stocks and bonds are usually — not always — negatively correlated during equity drawdowns.
- Should I build a 60/40 myself or use an all-in-one ETF?
- Mechanically the outcomes are similar. All-in-one ETFs add 0.08–0.15% in fees for auto-rebalancing and simplicity. DIY construction (VTI + BND) is cheaper but requires manual rebalancing and offers more tax-loss-harvesting flexibility in taxable accounts.
- How often does a mixed-asset ETF rebalance?
- Most allocation ETFs rebalance quarterly or semi-annually to bring holdings back to target weights. Some use threshold rebalancing (rebalance only when drift exceeds a set percentage). This automatic rebalancing is a meaningful source of return compared to a static buy-and-hold mix.
Related Asset Class
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