It's hard to believe, but we're near the end of 2025. It's been quite a year, too. We've seen a new presidential administration take office, a huge tax and spending law enacted, and a changing U.S. tariff policy that faces a Supreme Court challenge.
Unsurprisingly, the equity market was volatile, with the S&P 500 (^GSPC 0.05%) declining significantly in March and April. However, it rebounded, returning 16.6% year to date through Dec. 3.
Looking ahead, equity market challenges can be seen, including a macroeconomic environment characterized by stubbornly high prices and a weakening job market.
With this uncertainty, investors may wish to focus more on conservative investments. The iShares Core 30/70 Conservative Allocation ETF (AOK 0.11%) looks like the ideal choice.
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A look at the fund
The iShares Core 30/70 Conservative Allocation ETF actually consists of several equity and fixed-income exchange-traded funds (ETFs). Among the seven ETFs, the iShares Core Universal USD Bond ETF (IUSB 0.23%) had the largest weighting, over 59%, as of Nov. 28.
The next largest ETF allocations were the iShares Core S&P 500 ETF Trust (IVV 0.07%), iShares Core International Aggregate Bond ETF (IAGG 0.13%), and iShares Core MSCI International Developed Markets ETF (IDEV +0.34%) with 17.3%, 10.5%, and 8.2% weightings, respectively.
NYSEMKT: AOK
Key Data Points
Hence, the ETF gives significant exposure, 70%, to fixed income investments. It also provides investors with an equity allocation, notably U.S. large-capitalization stocks via the S&P 500 ETF, and stocks of all sizes in developed markets outside the U.S.
Currently, the iShares Core 30/70 Conservative Allocation ETF has a relatively low 0.15% expense ratio. That's an important consideration since, all else being equal, the lower the expense ratio, the higher an ETF's return.
Given the high exposure to fixed income and a diversified portfolio of equities, investors looking to dial back risk should strongly consider adding this ETF to their portfolio.
