Furthermore, investors may want to take a look at high-quality bonds outside of Treasuries, such as the iShares iBoxx $ Investment Grade Corporate Bond (NYSEArca: LQD) or the mortgage-backed iShares Barclays MBS Bond (NYSEArca: MBB). [What are ETFs? — The Benefits of Transparency]
If you don’t want to make decisions on ETF weightings or creating your own diversified portfolio, you might like an ETF that substitutes as a diversified portfolio.
The iShares S&P Moderate Allocation Fund (NYSEArca: AOM) holds about 69% in domestic fixed-income, 28% in domestic equities and 13% in international equities. The actively managed Cambria Global Tactical ETF (NYSEArca: GTAA) weights U.S. fixed-income at 59%, international fixed-income 5%, international emerging markets 2%, U.S. stock 13%, commodities 1%, U.S. Real Estate 11%, cash 8% and currencies 7%. [Diversified ETFs vs. Sector Funds]
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.