Personal FinanceFAMILY STOCK / Shutterstock.comMarc GubertiRetirement planning takes many years, and your goals will change as you get older. Younger investors typically focus on stocks, while older investors gravitate toward bonds and high-yield savings accounts.Risk tolerances, preferences, and financial situations change. A balanced allocation ETF can align with your risk tolerance and hold a mix of stocks and bonds. A portfolio manager does all of the work to ensure funds match up with your risk tolerance.If you’re looking for some balanced allocation ETFs that can set you up for retirement, these are some choices to consider.
Balance allocation ETFs give you exposure to stocks and bonds.
You can invest in balanced ETFs that align with your risk tolerance, and these five ETFs are good starting points.
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iShares Core Conservative Allocation ETF (AOK)TierneyMJ / Shutterstock.comThe iShares Core Conservative Allocation ETF (NYSEARCA:AOK) won’t keep up with the market during bull runs. However, this ETF does a better job of preserving wealth during market downturns. The fund primarily invests in other iShares ETFs, with almost 60% of its total assets in a bond ETF. An ETF that mirrors the S&P 500 makes up roughly 17.5% of the fund’s total assets.AOK has a 0.20% expense ratio and a 3.1% yield. Shares are up by 3% over the past year and have been flat over the past five years.Vanguard Target Retirement 2070 Fund (VSVNX)Target retirement funds are a type of balanced allocation ETF, and VSVNX is one of the top choices to consider. The fund has a 0.08% expense ratio and a 2.29% 30-day SEC yield.The fund will gradually decrease exposure to stocks and increase exposure to bonds as the target retirement date gets closer. Right now, the fund puts about 90% of its funds into stocks and 10% of its funds into bonds. VSVNX has $1.2 billion in total assets and requires a $1,000 minimum investment. The fund has gained 13% over the past year. WisdomTree U.S. Efficient Core Fund (NTSX)The WisdomTree U.S. Efficient Core Fund (NYSEARCA:NTSX) prioritizes exposure to U.S. equities with some exposure to U.S. Treasury futures contracts. The fund has a 0.20% expense ratio and a 1.51% yield. It’s up by 17% over the past year and has rallied by 50% over the past five years.NTSX’s equity positions only consist of large-cap stocks, with the Magnificent Seven stocks making up a good amount of the fund’s total positions. Currently, the fund puts 60% of its total assets into stocks and 40% of its funds into bonds. More than one-third of its assets are in the tech sector.GraniteShares HIPS U.S. High Income ETF (HIPS)Sutthiphong Chandaeng / Shutterstock