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How does a 60/40 fund work?

The mechanism is straightforward: For every dollar invested, the fund pays 90 cents for equity exposure and invests 10 cents to collateralize 60 cents worth of notional exposure to U.S. Treasury futures. With leverage, the portfolio’s 60/40 exposure jumps 1.5 times to 90% stocks and 60% Treasuries.

How risky is Blackrock 60/40 Target Allocation Fund?

BlackRock 60/40 Target Allocation Fund has an expense ratio of 0.44 percent. Risk is Average compared to funds in the same category according to Morningstar. Volitility measures reflect the uncertainty or risk of change in a security`s value. Quotes delayed at least 15 minutes. Market data provided by Xignite.

What is a '60/40' portfolio?

“Consider the classic ‘60/40’ portfolio, a blend of stocks and bonds that is commonly used as a proxy for the average person’s investment mix,” the article added further. “This year, the mix would have worked well amid extraordinary volatility.

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