These 5 ETFs Suit Needs For Multi-Asset Exposure

There are times when investors need to be risk-averse, especially when volatility hits hard. However, a multi-asset strategy can give investors the asset diversification their portfolio needs without dialing up the risk.

1. Invesco Balanced Multi-Asset Allocation ETF (PSMB A): 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.
2. Invesco Conservative Multi-Asset Allocation ETF (PSMC A-): 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.
3. Invesco Growth Multi-Asset Allocation ETF (PSMG B+): the fund 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.
4. Invesco Moderately Conservative Multi-Asset Allocation ETF (PSMM A): the fund seeks to provide current income and some capital appreciation. The fund seeks to achieve its investment objective by allocating its assets using a moderately conservative investment style that seeks to maximize the benefits of diversification, which focuses on investing portions of its assets in underlying ETFs that invest primarily in equity securities, as well as in underlying ETFs that invest primarily in fixed-income securities. Specifically, the fund’s target allocation is to invest approximately 25%-55% of its total assets in equity ETFs and approximately 45%-75% of its total assets in fixed income ETFs.
5. Invesco Zacks Multi-Asset Income ETF (CVY B): CVY is based on the Zacks Multi-Asset Income Index (Index). The Fund will invest at least 90% of its total assets in securities and depositary receipts that comprise the Index, which is comprised of domestic and international companies, including US-listed common stocks, American depositary receipts (ADRs) paying dividends, real estate investment trusts (REITs), master limited partnerships (MLPs), closed-end funds and traditional preferred stocks. The Index is computed using the gross total return, which reflects dividends paid.

This article originally appeared on ETFTrends.com