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I have been searching for a global balanced fund to be the single investment for our house. Not because messing around with funds isn’t a great sport but I might depart the scene or lose my mind. I have two candidates, one overweights financial services and the other tech. What would you go with? My final criteria is lower drawdown as opposed to max gains. Thanks for your thoughts.
Dunno if this one meets your criteria. It's a State Street ETF, a fund of its own funds, includes bonds. So, Asset Allocation or what we used to call "Balanced." Ticker is GAL.
Schwab is not showing me what I want to see about it. Overweight Financials or Tech, you ask? That's a false choice, a forced bifurcation.
Morningstar shows 15.93% in Financials, 26.42% in Tech, in GAL. Me? Just for shits and giggles:
I'm currently 26% in Financials, and 25.1% in "Info. Tech" according to Schwab. Those are my 2 biggest sector bets, followed by Health Care (13.1%) and Energy (12.8%). I'm waiting for the A.I. bubble to burst. My fearless prediction. So, I stay 47% in bonds: 19% "core." 28% Junk.
@ Crash. Thanks. Picking the “one” is very difficult. It’s easy to find three things wrong with any balanced fund. Too much tech, or junk or financials or derivatives, or too little global stocks. You get the idea.
@ Hank. It’s gotta be someplace. Seriously,,, what’s riskier in the next five years, tech or financials? I don’t have FOMO and won’t regret leaving money on the table.
For the search words: best fund with mix of tech and financial services
A quasi AI answer. Two sections. This first below doesn't include the word 'global', the second section does.
Regards, Catch
--- Funds that provide exposure to both technology and financial services generally fall under the Fintech (Financial Technology) thematic category. These funds invest in companies leveraging technology to transform financial services like payments, banking, and investing.
Here are some of the best-known and top-performing Fintech ETFs:
Top Fintech Funds Fund Name Ticker Description ARK Fintech Innovation ETF ARKF An actively managed ETF that invests in companies at the forefront of innovation in the fintech space, with holdings like Block, PayPal, and Coinbase. It is known for its focus on disruptive innovation and has shown strong returns over a three-year period despite high volatility.
Global X FinTech ETF FINX This fund seeks to invest in companies using technology to help banks and other financial firms digitize their operations. It offers broad exposure to companies involved in payment processing, peer-to-peer lending, and digital banking globally.
Amplify Digital Payments ETF IPAY A "pure-play" on the digital and mobile payments industry, this ETF includes traditional credit card companies like Visa and Mastercard, as well as emerging consumer payment companies like PayPal and Block.
iShares FinTech Active ETF BPAY This actively managed fund invests in a range of innovative companies, including payment processors and traditional financial institutions adopting new technologies.
Capital Link Global Fintech Leaders ETF KOIN This fund invests in a mix of traditional tech companies (e.g., Microsoft, Oracle) that provide the underlying technology for financial firms, and companies that use fintech internally.
Key Considerations Thematic Focus: These funds are thematic and thus more concentrated than broad market or even single-sector funds. They are designed to capture growth in the intersection of two dynamic sectors. Risk Profile: Fintech funds can be volatile due to the nature of technology and the evolving regulatory landscape of the financial sector. The performance has been mixed across different funds and time periods. Active vs. Passive: Some, like ARKF and BPAY, are actively managed, relying on management expertise to pick stocks. Others like FINX are index funds, aiming to track a specific index. Before investing, consider your risk tolerance and investment objectives, and review the specific holdings and expense ratios of each fund
--- USING THE WORD 'GLOBAL' Finding a single "best" fund is difficult as performance and suitability depend on market conditions and individual risk tolerance. However, several global funds invest significantly in both technology and financial services, offering exposure to both sectors. Funds with a mix of Technology and Financial Services Funds that explicitly target a blend of technology and financial services are often called "fintech" funds. These funds focus on the intersection of the two sectors.
ARK Fintech Innovation ETF (ARKF): This active ETF invests in companies that focus on disruptive innovation in the financial services sector, which inherently includes a large technology component. It has shown strong long-term performance (50.09% three-year total return) but comes with high volatility.
Global X FinTech ETF (FINX): This ETF offers exposure to companies providing financial technology products and services.
Capital Link Global Fintech Leaders ETF (KOIN): This fund divides its investments into two groups: traditional financial companies adopting new technology and technology firms providing the code/hardware for fintech systems. Its top holdings include a mix of large tech companies like Microsoft and financial service infrastructure providers.
General Global Technology Funds with Diversification Many general global technology funds include financial technology companies as part of their diversified technology holdings. These often have strong long-term performance and high ratings. Janus Henderson Global Technology And Innovation Fund (JNGTX, JGLTX): This highly-rated fund invests in domestic and foreign companies that benefit from technological advances. It has strong three-year annualized returns (32.4%) and is a good option for global technology exposure.
T. Rowe Price Global Technology Fund (PRGTX): This fund seeks long-term capital growth by investing globally in technology companies. It has a reasonable expense ratio and good performance.
Putnam Global Technology Fund (PGTAX): Another global fund focused on capital appreciation through investments in large and mid-size companies in the technology sector.
Important Considerations Global vs. US Focus: Most top-performing, large-asset tech funds are heavily US-focused (e.g., Vanguard Information Technology ETF, FTEC, XLK), often with over 60% of assets in the top few large-cap tech stocks like Apple, Nvidia, and Microsoft. Funds with a true "global" mandate will have more exposure to international markets. Risk: Sector-specific funds, especially in high-growth areas like technology and fintech, can be more volatile than a broadly diversified global index fund. Expense Ratios: ETFs generally have lower expense ratios than actively managed mutual funds, which can impact long-term returns. It is recommended to evaluate the specific holdings, risk profiles, and expense ratios of these funds to determine which best fits your investment goals.
@ Hank. It’s gotta be someplace. Seriously,,, what’s riskier in the next five years, tech or financials? I don’t have FOMO and won’t regret leaving money on the table.
I wish I could answer your question Larry. I’ve been spending too much time reading 1929 lately, which may explain an aversion to putting much risk on the table. I believe there will be better buying opportunities. But, it all depends on risk appetite and time horizon.
Here’s the problem with the two choices: Even if one or the other (tech / financial) is “safer” - that does not preclude that “safer” investment from underperforming for months or even years before the tide turns. Gail Dudack wanted nothing to do with tech for a couple years before the 2000 tech wreck. But tech continued to soar. Became so “out of sync” with the current climate that Rukeyser finally fired (from her exalted position as a Wall Street Week “elf”). .
S&P500 has over 31% exposure to technology sector and that is quite enough in my opinion. In light of the high valuation of the US market, future returns are likely to be lower than the historical averages.
For simplicity of using a single fund, why not consider broad-base total market index funds with both US and international in stocks and bonds? Depending which brokerage you use, one can select a static asset allocation funds or even a target date funds. At Vanguard they offer the LifeStrategy funds with 80/20 (Growth), 60/40 (moderate growth), 40/60 (conservative growth) and 20/80 (Income). Similar allocation funds are available at Fidelity and Schwab too.
"I have been searching for a global balanced fund to be the single investment for our house."
If I was searching for a global balanced fund, I would probably select Vanguard Global Wellington. It has low expenses, a well-resourced adviser (Wellington), and a proven strategy.
Thanks for adding the substance guys. ISTM that “global” funds, unlike international, do normally have significant U.S. exposure. Some as high as 65-70%. Not to argue, just to be sure we’re on the same playing field.
The whole concept of a single fund for all (or most) of one’s investments is a tough nut to crack. I wouldn’t do it, but you can find many examples of where it would have produced great long term results. Too many fantastic funds to even mention. But always that nasty little warning in the fine print: “Past performance is no guarantee …”
At 80 and 15 years out from the last serious bear market (‘07-‘09) … do I want 60-65% of my life savings in stocks? No thank you. There are lot of interesting issues here. I look forward to following the thread. -
Fair play / disclosure here: I am about 30% equity, 10% “other” (mostly real assets) with the remaining 60% in short term or rate-hedged debt of varying quality. Compared to 1-2% on cash a decade ago, 4, 5 or 6% (depending on quality of instrument ) isn’t hard to take. If leary of equity valuations, you’re getting paid to wait.
@larryB At my stage of investing, risk=volatility. Obviously, nobody can see the future but if you look at a chart of the 2 sectors over the past 5 years, you may have your answer. Are you willing to bet that the next 5 years will be much different? While gains have been greater in tech, chances of a loss were also greater.
Perhaps you could share the names of the 2 funds you are considering.
@larryB, have you run those 2 candidates through MFO Premium for their drawdown? The other question you have to ask yourself is will I have enough time to recover in severe drawdown.
Our MFO contributor, Lynn Bolin, has written extensively on conservative portfolio in retirement. Highly recommended.
The two funds we own are VGWIX, Global Wellesley and PRSIX , the TRP conservative allocation. I use Portfolio Visualizer to get max drawdown, worst year and asset allocations. Lastly I supplement the two balanced funds with some short duration FI to bring the whole thing down to 30% equity and lower the duration. This is all alongside my long time Permanent Portfolio position. And there you have it. My six fund solution. LOL.
Comments
Schwab is not showing me what I want to see about it. Overweight Financials or Tech, you ask? That's a false choice, a forced bifurcation.
Morningstar shows 15.93% in Financials, 26.42% in Tech, in GAL.
Me? Just for shits and giggles:
I'm currently 26% in Financials, and 25.1% in "Info. Tech" according to Schwab. Those are my 2 biggest sector bets, followed by Health Care (13.1%) and Energy (12.8%). I'm waiting for the A.I. bubble to burst. My fearless prediction. So, I stay 47% in bonds: 19% "core." 28% Junk.
My own Financials are NOT in the Big Bankster outfits that are the famous U.S. entities.
***********
Break a leg!
https://www.morningstar.com/etfs/arcx/gal/quote
Well, if you’re considering dumping 100% of your money into a 60/40 fund …
Might be too late.
For the search words: best fund with mix of tech and financial services
A quasi AI answer. Two sections. This first below doesn't include the word 'global', the second section does.
Regards,
Catch
--- Funds that provide exposure to both technology and financial services generally fall under the Fintech (Financial Technology) thematic category. These funds invest in companies leveraging technology to transform financial services like payments, banking, and investing.
Here are some of the best-known and top-performing Fintech ETFs:
Top Fintech Funds
Fund Name Ticker Description
ARK Fintech Innovation ETF ARKF An actively managed ETF that invests in companies at the forefront of innovation in the fintech space, with holdings like Block, PayPal, and Coinbase. It is known for its focus on disruptive innovation and has shown strong returns over a three-year period despite high volatility.
Global X FinTech ETF FINX This fund seeks to invest in companies using technology to help banks and other financial firms digitize their operations. It offers broad exposure to companies involved in payment processing, peer-to-peer lending, and digital banking globally.
Amplify Digital Payments ETF IPAY A "pure-play" on the digital and mobile payments industry, this ETF includes traditional credit card companies like Visa and Mastercard, as well as emerging consumer payment companies like PayPal and Block.
iShares FinTech Active ETF BPAY This actively managed fund invests in a range of innovative companies, including payment processors and traditional financial institutions adopting new technologies.
Capital Link Global Fintech Leaders ETF KOIN This fund invests in a mix of traditional tech companies (e.g., Microsoft, Oracle) that provide the underlying technology for financial firms, and companies that use fintech internally.
Key Considerations
Thematic Focus: These funds are thematic and thus more concentrated than broad market or even single-sector funds. They are designed to capture growth in the intersection of two dynamic sectors.
Risk Profile: Fintech funds can be volatile due to the nature of technology and the evolving regulatory landscape of the financial sector. The performance has been mixed across different funds and time periods.
Active vs. Passive: Some, like ARKF and BPAY, are actively managed, relying on management expertise to pick stocks. Others like FINX are index funds, aiming to track a specific index.
Before investing, consider your risk tolerance and investment objectives, and review the specific holdings and expense ratios of each fund
--- USING THE WORD 'GLOBAL'
Finding a single "best" fund is difficult as performance and suitability depend on market conditions and individual risk tolerance. However, several global funds invest significantly in both technology and financial services, offering exposure to both sectors.
Funds with a mix of Technology and Financial Services
Funds that explicitly target a blend of technology and financial services are often called "fintech" funds. These funds focus on the intersection of the two sectors.
ARK Fintech Innovation ETF (ARKF): This active ETF invests in companies that focus on disruptive innovation in the financial services sector, which inherently includes a large technology component. It has shown strong long-term performance (50.09% three-year total return) but comes with high volatility.
Global X FinTech ETF (FINX): This ETF offers exposure to companies providing financial technology products and services.
Capital Link Global Fintech Leaders ETF (KOIN): This fund divides its investments into two groups: traditional financial companies adopting new technology and technology firms providing the code/hardware for fintech systems. Its top holdings include a mix of large tech companies like Microsoft and financial service infrastructure providers.
General Global Technology Funds with Diversification
Many general global technology funds include financial technology companies as part of their diversified technology holdings. These often have strong long-term performance and high ratings.
Janus Henderson Global Technology And Innovation Fund (JNGTX, JGLTX): This highly-rated fund invests in domestic and foreign companies that benefit from technological advances. It has strong three-year annualized returns (32.4%) and is a good option for global technology exposure.
T. Rowe Price Global Technology Fund (PRGTX): This fund seeks long-term capital growth by investing globally in technology companies. It has a reasonable expense ratio and good performance.
Putnam Global Technology Fund (PGTAX): Another global fund focused on capital appreciation through investments in large and mid-size companies in the technology sector.
Important Considerations
Global vs. US Focus: Most top-performing, large-asset tech funds are heavily US-focused (e.g., Vanguard Information Technology ETF, FTEC, XLK), often with over 60% of assets in the top few large-cap tech stocks like Apple, Nvidia, and Microsoft. Funds with a true "global" mandate will have more exposure to international markets.
Risk: Sector-specific funds, especially in high-growth areas like technology and fintech, can be more volatile than a broadly diversified global index fund.
Expense Ratios: ETFs generally have lower expense ratios than actively managed mutual funds, which can impact long-term returns.
It is recommended to evaluate the specific holdings, risk profiles, and expense ratios of these funds to determine which best fits your investment goals.
Here’s the problem with the two choices: Even if one or the other (tech / financial) is “safer” - that does not preclude that “safer” investment from underperforming for months or even years before the tide turns. Gail Dudack wanted nothing to do with tech for a couple years before the 2000 tech wreck. But tech continued to soar. Became so “out of sync” with the current climate that Rukeyser finally fired (from her exalted position as a Wall Street Week “elf”). .
For simplicity of using a single fund, why not consider broad-base total market index funds with both US and international in stocks and bonds? Depending which brokerage you use, one can select a static asset allocation funds or even a target date funds. At Vanguard they offer the LifeStrategy funds with 80/20 (Growth), 60/40 (moderate growth), 40/60 (conservative growth) and 20/80 (Income). Similar allocation funds are available at Fidelity and Schwab too.
If I was searching for a global balanced fund, I would probably select Vanguard Global Wellington.
It has low expenses, a well-resourced adviser (Wellington), and a proven strategy.
The whole concept of a single fund for all (or most) of one’s investments is a tough nut to crack. I wouldn’t do it, but you can find many examples of where it would have produced great long term results. Too many fantastic funds to even mention. But always that nasty little warning in the fine print: “Past performance is no guarantee …”
At 80 and 15 years out from the last serious bear market (‘07-‘09) … do I want 60-65% of my life savings in stocks? No thank you. There are lot of interesting issues here. I look forward to following the thread.
-
Fair play / disclosure here: I am about 30% equity, 10% “other” (mostly real assets) with the remaining 60% in short term or rate-hedged debt of varying quality. Compared to 1-2% on cash a decade ago, 4, 5 or 6% (depending on quality of instrument ) isn’t hard to take. If leary of equity valuations, you’re getting paid to wait.
Perhaps you could share the names of the 2 funds you are considering.
Our MFO contributor, Lynn Bolin, has written extensively on conservative portfolio in retirement. Highly recommended.