As the name suggests, a multi-asset strategy combines different types of assets, such as stocks, bonds, real estate or cash, to create a more nimble and broadly diversified portfolio. Fund managers make big-picture decisions to achieve particular investment objectives, such as seeking growth, seeking income, or minimizing risk.
There are many different multi-asset strategies, but the three major multi-asset fund categories include:
- Global Macro Allocation: These multi-asset funds offer investors broad diversification across a wide spectrum of asset classes. These funds have the flexibility to adapt to ever-changing macro-economic conditions.
- Risk Tolerance: These funds tailor their allocation toward a desired level of risk, whether it is conservative, moderate or aggressive.
- Target Date: Typically geared toward retirement investing, these multi-asset funds are designed to gradually change the portfolio's allocation to match a specific investment horizon.
Multi-asset strategies offer
many benefits
High-level allocation strategy is a critical component to investment success. The common element across multi-asset funds is that experienced fund managers make key decisions, such as whether to invest more assets overseas, shift assets from bonds to other income-generating securities, dial back risk or be more opportunistic, for you.
Outcome-oriented strategies
BlackRock offers a wide range of multi-asset strategies to help you achieve your investment goals, whether you want to dynamically invest across the globe, keep risk exposure to a minimum or take the guess work out of asset allocation decisions. Whatever your goals, you can look to BlackRock to help manage them based on:
- EXPERIENCE: More than 26 years’ average experience1 building multi-asset portfolios across a range of funds, customized mandates, and model portfolios.
- BREADTH: Scale, industry leading risk management capabilities – Aladdin® and global reach of BlackRock.
- DEPTH: $434 billion2 managed by over 200 investment professionals across 9 teams.
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Data in the following tables is valid as of 12/31/18
For fund performance and standardized rating periods, click on the fund name.
Data in the following tables is valid as of 12/31/18
| Growth | ||
|---|---|---|
| iShares Core Aggressive Allocation ETF | AOA | 0.33% |
| iShares Core Conservative Allocation ETF | AOK | 0.34% |
| iShares Core Moderate Allocation ETF | AOM | 0.34% |
| iShares Core Growth Allocation ETF | AOR | 0.33% |
| Income | ||
| iShares Morningstar Multi-Asset Income ETF | IYLD | 0.60% |
For standardized performance and more information, click on the ETF name.
| Allocation |
|---|
| Target Allocation ETF Portfolio Strategies |
| Research Models |
| BlackRock Model Portfolios |
More about multi-asset strategies
How do BlackRock's multi-asset strategies compare to others?
Whether you're looking to better manage portfolio risk, plan for a specific investment horizon or tap into broader opportunities, BlackRock multi-asset mutual funds and iShares ETFs can help you achieve your goals and minimize your investment expenses.
Our multi-asset investing team has expertise in key markets around the world and across asset classes. The common thread: All our funds are anchored by our depth of research and unwavering commitment to our investors. And as the world's largest asset manager, we use our scale to deliver a depth of research and expertise with below-average investment fees.
What are some risks associated with multi-asset strategies?
The major benefit of multi-asset securities is having professional investors guide big-picture investment decisions. This helps mitigate risk, but, as with any investment, does not completely eliminate it.
One potential risk is choosing a fund with objectives that don't align with yours. For example, you may think you want to invest aggressively, when a more conservative approach might be more suitable. On the other hand, taking too conservative an approach can make it more difficult to achieve your long-term goals.
Likewise, because many multi-asset strategies, such as target-date or target-risk funds, are designed to encompass a large percentage of your assets, you should pay attention to your management team's track record and investment fees.
What are some myths associated with multi-asset strategies?
Most of the myths associated with multi-asset strategies stem from a mistaken or limited definition. Some investors think multi-asset strategies are simply macro-economic funds. Others only associate them with target date funds. The reality: Multi-asset strategies, as outlined above, can be either of these things — and more.
Important considerations
Multi-asset funds can be a powerful tool for achieving your investment objectives, but a strategy that works well for one investor may not be the best fit for another. As with any investment decision, it's important to first understand what you're trying to achieve and then identify the best strategy to get you there.