For those eyeing a blend of capital appreciation and steady income, balanced funds stand out as a go-to choice. Roughly 60 percent of these ETFs and mutual funds are typically anchored in equities, while the remaining slice—around 40 percent—finds refuge in bonds. Yet, precise allocations can shift, tailored to each fund’s unique game plan.
Such funds represent a compelling option when contemplating portfolio diversification and risk management strategies.
Note: The following data reflects figures as of May 30, 2025.
Vanguard Balanced Index Fund Admiral Shares (VBIAX)
With an impressively low cost, this mutual fund offers a harmonious mix by generally allocating about 60% to stocks and 40% to bonds. It mirrors broad U.S. equity and fixed-income indexes, delivering a smooth balance between growth potential and income stability.
- Annualized 5-year returns: 8.8%
- Expense ratio: 0.07%
- Dividend yield: 2.14%
iShares Core 60/40 Balanced Allocation ETF (AOR)
This ETF seeks to emulate an index comprising a mix of equity and bond funds, crafted to embody a growth-oriented risk profile. Its makeup typically features close to 62% equities paired with 38% fixed income, striking a tactful balance between expansion and preservation.
- Annualized 5-year returns: 7.9%
- Expense ratio: 0.15%
- Dividend yield: 2.69%
Fidelity Balanced Fund (FBALX)
Aimed at those seeking both income and capital growth without courting undue risk, this mutual fund leans about 60% into stocks and 40% into bonds and other debt instruments. It offers a reassuring blend, balancing ambition with prudence.
- Annualized 5-year returns: 11.2%
- Expense ratio: 0.47%
- Dividend yield: 1.76%
Snapshot of Balanced Funds Landscape
On average, balanced funds maintain an equity allocation between 40% and 75%, depending on their risk appetite and strategy. Expense ratios tend to range from 0.07% up to about 0.50%, reflecting varying management costs. Dividend yields mostly hover around 2%, contributing a steady income stream alongside potential capital gains.
SPDR SSGA Global Allocation ETF (GAL)
Taking a worldly view, this ETF channels investments into a blend of ETFs and generally commits at least 30% of its assets outside the U.S. The portfolio usually balances around 60% equities, though this ratio can flex depending on market conditions and fund strategy.
- Annualized 5-year returns: 8.7%
- Expense ratio: 0.35%
- Dividend yield: 2.95%
American Funds American Balanced F3 (AFMBX)
Focused on quality stocks and bonds, this fund diversifies its holdings with equity stakes typically fluctuating between 50% and 75%. Its aggressive risk tilt results in roughly 80% allocation to stocks and 20% in bonds, aiming to capture greater growth while still sheltering some downside.
- Annualized 5-year returns: 10.7%
- Expense ratio: 0.15%
- Dividend yield: 2.31%
iShares Core 40/60 Moderate Allocation ETF (AOM)
Designed with a moderate-risk appetite in mind, this ETF tracks an index blending stock and bond funds. Typically, it carries about 40% in equities balanced by 60% in bonds, offering a more conservative flavor in the balanced fund spectrum.
- Annualized 5-year returns: 5.2%
- Expense ratio: 0.15%
- Dividend yield: 3.07%
Final Thoughts
Before diving into any investment pool, conduct thorough, independent research to align selections with personal goals and risk tolerance. Past performance — though insightful — doesn’t guarantee future rewards, so stay grounded and informed in your decision-making.