What is a balanced ETF?

Balanced funds offer an easy shortcut, providing a professionally managed, diversified portfolio of stocks, bonds and other assets in a single low-cost fund. Our list of the best balanced ETFs includes options tailored to the needs of both conservative and aggressive investors, and funds that utilize both fixed and variable allocations.

What is a balanced portfolio?

When you first design and commit funds to an investment strategy, that is known allocating your assets. As a simplified example, you may want to have 70% of your portfolio in stocks and 30% in bonds. When you initially fund your portfolio in this manner, it would be what you consider a balanced portfolio.

Are balanced funds a good investment?

The main appeal of balanced funds lies in their relative simplicity and accessibility for investors. The applications of Modern Portfolio Theory and its findings on diversification have led to the proliferation of balanced funds. A common example you're likely familiar with is the "60/40" portfolio, which consists of 60% stocks and 40% bonds.