iShares Core Aggressive Allocation ETF (AOA)

Overview

The iShares Core Aggressive Allocation ETF (AOA) seeks to provide long-term capital appreciation by investing in a portfolio of other iShares ETFs that represent a diversified mix of stocks and bonds. It's designed for investors with a higher risk tolerance seeking maximum growth. AOA offers exposure to a globally diversified portfolio with a high allocation to equities.

Reputation and Reliability

BlackRock is one of the world's largest asset managers, known for its reliable ETF offerings and strong track record.

Management Expertise

BlackRock has a vast team of experienced portfolio managers and analysts overseeing their ETF products.

Goal

To provide long-term capital appreciation through a diversified portfolio of stocks and bonds.

Investment Approach and Strategy

Strategy: The ETF employs a fund-of-funds strategy, investing in a diversified portfolio of other iShares ETFs representing various asset classes.

Composition Primarily invests in other iShares ETFs, resulting in exposure to stocks (domestic and international), bonds, and cash equivalents. The ETF has a significant allocation to equity.

Market Share: The market share of AOA within the asset allocation ETF category is moderate, though its market share is relatively smaller than more popular individual index-tracking ETFs.

Total Net Assets (AUM): 2040000000

Key Competitors

• Vanguard Target Retirement Funds (VTTVX, VTTHX, VTTTX, VFORX, VFFVX, VFIFX, VTWNX)
• Schwab Target Date Funds (SWYJX, SWYNX, SWPRX, SWJSX, SWKCX, SWCTX)
• iShares Target Date Funds (various series, but not directly comparable as AOA is not a target date fund)

Competitive Landscape

The asset allocation ETF market is competitive, with Vanguard and Schwab offering similar products. AOA competes by offering a slightly different allocation strategy and the breadth of the iShares ETF universe. The advantages of AOA include access to the BlackRock brand and a well-diversified portfolio; however, it has a higher expense ratio compared to some Vanguard options.

Historical Performance: Historical performance data is best accessed directly from financial data providers like Bloomberg, Yahoo Finance, or the iShares website. Past performance is not indicative of future results.

Benchmark Comparison: The ETF's performance is compared to a blended benchmark reflecting the performance of the underlying asset classes and iShares ETFs.

Expense Ratio: 0.15

Average Trading Volume

The average daily trading volume is moderate, providing sufficient liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is generally tight, reflecting sufficient liquidity and relatively low trading costs.

Market Environment Factors

Economic growth, interest rate movements, inflation, and global market conditions influence the performance of the underlying asset classes and therefore affect AOA's performance.

Growth Trajectory

Growth trends depend on investor demand for diversified asset allocation strategies and the performance of the underlying iShares ETFs. There have been no significant changes to its core strategy.

Competitive Edge

AOA's competitive edge lies in BlackRock's established brand, the comprehensive iShares ETF ecosystem, and the simplicity of its all-in-one asset allocation approach. It offers investors a hassle-free way to achieve a diversified portfolio with a single investment. The fund's aggressive allocation appeals to investors seeking higher growth potential. It's ease of use attracts investors.

Volatility

AOA exhibits moderate volatility due to its high allocation to equities, which is typical for an aggressive allocation strategy.

Market Risk

Market risk includes the potential for losses due to fluctuations in the stock and bond markets, as well as economic and geopolitical events.

Ideal Investor Profile

The ideal investor is one with a long-term investment horizon, a high risk tolerance, and a desire for capital appreciation. Suitable for those who want a diversified portfolio without actively managing individual asset classes.

Market Risk

AOA is best for long-term investors who are comfortable with market volatility and seeking growth.

The iShares Core Aggressive Allocation ETF (AOA) offers a diversified, all-in-one investment solution for investors with a high risk tolerance and long-term goals. By investing in other iShares ETFs, AOA provides exposure to a broad range of asset classes with a focus on capital appreciation. However, the ETF's aggressive allocation carries higher volatility, making it unsuitable for risk-averse investors. BlackRock's reputation and the ease of diversification make AOA an attractive option for hands-off investors.

Data Sources:

• iShares Website
• Bloomberg
• Morningstar

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Past performance is not indicative of future results. Data is as of October 26, 2023, and is subject to change.