Investors witnessed the power of a whipsawing market amid Russia’s invasion of Ukraine as the major stock market indexes fluctuated up and down. To help smooth out the volatility, a multi-asset strategy can help with minimizing over-concentration in stocks.
Funds that specialize in multi-asset strategies make the exposure even easier. Diversification can be had with one fund as opposed to holding various assets.
“Given the volatility in the equity markets, multi-asset funds can help investors diversify and lower their portfolio risk,” a Financial Express article says. “Multi-asset portfolios invest across less than perfectly correlated assets, rather than exposing an investor to the risks of a single asset class. This improves the risk-reward potential of the portfolio and provides for a less volatile investment experience.”
3 Multi-Asset Options From Invesco
From getting a balanced portfolio of multiple assets to more growth-oriented exposure, Invesco has three ETFs to suit an investor’s needs. Furthermore, they’re actively managed, giving investors dynamic exposure to multi-asset exposure:
- Invesco Balanced Multi-Asset Allocation ETF (PSMB): PSMB seeks to achieve its investment objective by allocating its assets using a balanced investment style that seeks to maximize the benefits of diversification, which focuses on investing a portion of fund assets both in underlying ETFs that invest in fixed income securities as well as in underlying ETFs that invest primarily in equity securities. The fund’s target allocation is to invest approximately 45%-75% of its total assets in equity ETFs and approximately 25%-55% of its total assets in fixed income ETFs.
- Invesco Conservative Multi-Asset Allocation ETF (PSMC): PSMC seeks total return consistent with a lower level of risk relative to the broad stock market. The fund seeks to achieve its investment objective by allocating its assets using a conservative investment style that seeks to maximize diversification benefits, which focuses on investing a greater portion of fund assets in fixed income ETFs and provides some exposure to underlying ETFs that invest primarily in equity ETFs. Specifically, the fund’s target allocation is to invest approximately 5%-35% of its total assets in equity ETFs and approximately 65%-95% of its total assets in fixed income ETFs.
- Invesco Growth Multi-Asset Allocation ETF (PSMG): PSMG seeks long-term capital appreciation by allocating through a growth investment style that seeks to maximize diversification potential. In essence, PSMG is a “fund of funds,” meaning that it invests its assets in the shares of other ETFs instead of securities of individual companies.
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