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Balanced funds are popular with investors looking for a combination of growth and income from their portfolio. These ETFs and mutual funds hold a combination of stocks and bonds and tend to be less volatile than funds that hold only stocks.
A balanced fund has 60% of its assets invested in stocks and the other 40% in bonds. Allocation may vary depending on the fund’s strategy.
These funds provide investors with a diverse portfolio. Investors are likely to be less volatile than funds that hold only stocks. A balanced fund offers more growth than bond-only funds due to exposure to stocks. It’s a truly balanced portfolio strategy.
One drawback of using a balanced fund is that it does not manage the fund’s asset allocation. For example, if your 60/40 portfolio doesn’t suit your needs, you might need to find a different strategy, for example.
Below are some top-balanced ETFs and mutual funds for considering your portfolio:
Top-balanced ETFs and mutual funds in the portfolio
*Data as of May 30, 2025.
Vanguard Balance Index Fund Admiral Stock (VBIAX)
This mutual fund provides investors with a very low cost, balanced fund. Funds typically invest around 60% of their portfolios and 40% in bonds by tracking indexes that track the wide range of US equity and bond markets.
- 5-year return (annual): 8.8%
- Cost Ratio: 0.07%
- Dividend Yield: 2.14%
iShares Core 60/40 Balance Allocation ETF (AOR)
The ETF is intended to track investment results for an index consisting of stock and bond funds intended to represent a growth allocation target risk strategy. The fund holds approximately 62% in stocks and 38% in bonds.
- 5-year return (annual): 7.9%
- Cost Ratio: 0.15%
- Dividend Yield: 2.69%
Fidelity Balanced Fund (Fbalx)
The Fidelity Balanced Fund is a mutual fund that seeks to take reasonable risks and grow its income and capital. The fund holds approximately 60% in equity securities and 40% in bonds and other debt securities.
- 5-year return (annual): 11.2%
- Cost Ratio: 0.47%
- Dividend Yield: 1.76%
SPDRSSGA Global Assignment ETF (GAL)
This ETF invests in a combination of funds traded on exchanges and generally has at least 30% of its assets in countries outside the US. Portfolios typically have about 60% of their assets in equity securities, but the percentages vary.
- 5-year return (annual): 8.7%
- Cost Ratio: 0.35%
- Dividend Yield: 2.95%
American Fund American Balance F3 (AFMBX)
This mutual fund invests in a diverse portfolio of quality stocks and bonds, and typically holds 50% to 75% of its assets in its stock. Bond allocations generally invest in investment grade bonds.
- 5-year return (annual): 9.7%
- Cost Ratio: 0.25%
- Dividend Yield: 2.23%
iShares Core 80/20 AggressiveAllocationETF (AOA)
The ETF is intended to track investment results for an index consisting of stock and bond funds intended to represent an aggressive target risk allocation strategy. The fund holds approximately 80% in stocks and 20% in bonds.
- 5-year return (annual): 10.7%
- Cost Ratio: 0.15%
- Dividend Yield: 2.31%
iShares Core 40/60 Medium Allocated ETF (AOM)
The ETF is intended to track investment results for an index consisting of stock and bond funds intended to represent a medium target risk allocation strategy. The fund holds approximately 40% in stocks and 60% in bonds.
- 5-year return (annual): 5.2%
- Cost Ratio: 0.15%
- Dividend Yield: 3.07%
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. Furthermore, investors recommend that past investment products performance is not a guarantee of future price increases.