GAL and other multi-asset ETFs are getting a second look from investors as balanced mutual funds enjoy a renaissance.
Assets in the mutual funds increased 3.6% during the first four months of the year, compared with 1.2% for those that only buy equities, Bloomberg News reports. The growth of funds that now balance more than $1 trillion of stocks and bonds shows the reluctance to invest after the financial crisis is easing, according to the story.
“It shows the early stages of the healing process and reduction in this still pervasive negative psychology about the stock market,” Michael Holland, chairman of Holland & Co., told Bloomberg. “We’re four years into a bull market and levels of stock ownership remain very, very low.”
SPDR SSgA Global Allocation ETF
Full disclosure: Tom Lydon’s clients own SPY.