New Year ETF Resolution Isn’t About Picking Winners, It’s About Balance - iShares Core U.S. Aggregate Bond ETF (ARCA:AGG), iShares Core 30/70 Conservative Allocation ETF (ARCA:AOK)

Core Insights - The article emphasizes the importance of portfolio structure and risk distribution rather than merely focusing on asset selection as the market experiences narrow leadership and uneven performance [1] Group 1: ETF Utilization - ETFs are increasingly being used as tools for managing portfolios, allowing investors to adjust allocation, diversification, and risk without relying on individual stock picks [2] - The article suggests that new year investing resolutions should include the momentum of using ETFs for portfolio management [2] Group 2: All-In-One ETFs - Asset allocation ETFs, such as iShares Core 60/40 Balanced Allocation ETF (AOR), iShares Core 40/60 Moderate Allocation ETF (AOM), and iShares Core 30/70 Conservative Allocation ETF (AOK), provide a structured approach to investing by bundling equity and fixed-income ETFs [3] - These funds automatically rebalance to maintain target allocations over time, offering a simple framework for investors reassessing their risk tolerance [4] Group 3: Equal-Weight ETFs - Concentration risk is a concern with market-cap-weighted indices, which can lead to portfolios being heavily influenced by a few large companies [5] - Equal-weight ETFs, like Invesco S&P 500 Equal Weight ETF (RSP), provide similar weights to all companies, increasing exposure to mid-sized companies and reducing dependence on large-cap stocks, though they may experience more turnover and volatility [6] Group 4: Bond ETFs - Fixed income remains a crucial component in portfolio construction discussions, with broad-based bond ETFs like Vanguard Total Bond Market ETF (BND) and iShares Core U.S. Aggregate Bond ETF (AGG) offering diversified exposure across various securities [7] - Shorter-duration bond ETFs are utilized to manage interest-rate sensitivity while seeking income, with performance being more dependent on market conditions than timing [8] Group 5: ETF Details - Key ETFs mentioned include: - AOR: Growth-oriented asset allocation, Expense Ratio: 0.15% - AOM: Moderate asset allocation, Expense Ratio: 0.15% - AOK: Conservative asset allocation, Expense Ratio: 0.15% - RSP: S&P 500 equal-weight equities, Expense Ratio: 0.20% - BND: Broad U.S. bond market, Expense Ratio: 0.03% - AGG: U.S. aggregate bonds, Expense Ratio: 0.03% [9]