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I took another look at iShares allocation series: AOK (30-70), AOM (40-60), AOR (60-40), AOA (80-20).
It used to have typical allocation names - CA, MA, BA, AA, but actual equity allocations were much lower than common use. Now, it seems that it has allocations within the names (effective only 2/19/25, supplement 12/20/24), so just watch how well it sticks to them.
I don't have any direct experience, but this new form is definitely better than the old form. When you read other analyses on these, keep this recent change in mind.
I’ve watched the 30/70 variant (AOK) for years and considered buying it several times. Perhaps not relevant, but both got clocked pretty good in 2022. More than I’d expect on a risk / reward basis. That’s OK if you have a long term horizon. But doesn’t give me good “vibes”. Not saying your daughter shouldn’t buy AOR. Not a bad fund. But, I’d look around more. Roths are the best invention since sliced bread. I try to hold slower growing income generating assets in my Traditional IRA and go a little higher on the risk in the Roth.
I use the I shares allocation series as benchmarks when messing around on Portfolio Visualizer. In theory I always beat the benchmark with my slice and dice bits and pieces. But in reality I don’t think I would win over the longer term. I think they are pretty good for most of us except the world’s greatest investor. I like the global diversification.
Comments
It used to have typical allocation names - CA, MA, BA, AA, but actual equity allocations were much lower than common use. Now, it seems that it has allocations within the names (effective only 2/19/25, supplement 12/20/24), so just watch how well it sticks to them.
I don't have any direct experience, but this new form is definitely better than the old form. When you read other analyses on these, keep this recent change in mind.
OLD Names-->NEW Names
iShares Core Aggressive Allocation ETF-->iShares Core 80/20 Aggressive Allocation ETF
iShares Core Growth Allocation ETF-->iShares Core 60/40 Balanced Allocation ETF
iShares Core Moderate Allocation ETF-->iShares Core 40/60 Moderate Allocation ETF
iShares Core Conservative Allocation ETF-->iShares Core 30/70 Conservative Allocation ETF