iShares Core 40/60 Moderate Allocation ETF

iShares Core 40/60 Moderate Allocation ETF (AOM) is a fund of funds. It owns seven other iShares ETFs to track the S&P Target Risk Moderate Index, which holds roughly 40% stocks and 60% bonds. What sets it apart is a whole balanced portfolio in one ticker for a 0.15% expense ratio. The bond-heavy mix has meant smaller swings than an all-stock fund, but also slower long-term growth.

• Over the year to Oct 27, 2026, AOM returned +4.8%, 8th of 8 among similar funds.
• Its 5-year annualized return was +4.4% and its 10-year +6.1%.
• In the 2020 COVID crash it fell 16.9% and regained its old high 3.8 months after the low.
• Its worst full calendar year was 2022 (-14.6%); its best was 2019 (+15.6%).
• The deepest fall in its price history was 20% (Nov 5, 2021 to Oct 14, 2022), recovered by Jun 18, 2024.

As of Jul 31, 2026, the fund held 7 securities; the ten largest made up 99.91% of assets, and 9.11% sat in cash and money-market holdings.

• Over the three months to Jul 31, 2026, investors added a net $17.7M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +1.98%, -0.01%, -0.77%.

AOM tracks the S&P Target Risk Moderate Index from S&P Dow Jones Indices. The index follows the provider's own model of a "moderate" risk portfolio. As of July 31, 2025, that meant a fixed 40% in stock funds and 60% in bond funds. The index provider decides which funds go in and how much each one gets. Its idea of "moderate" may not match yours.

The fund does not buy stocks and bonds itself. It buys other iShares ETFs. As of July 31, 2026, the iShares Core Universal USD Bond ETF made up 49.6% of assets. Next came the iShares Core S&P 500 ETF at 23.4%, Core MSCI International Developed Markets at 11.7%, Core International Aggregate Bond at 8.9%, Core MSCI Emerging Markets at 4.4%, Core S&P Mid-Cap at 1.3% and Core S&P Small-Cap at 0.65%.

BlackRock Fund Advisors (BFA) runs AOM as an index fund. It does not try to beat the index or move to cash when markets fall. At least 80% of assets go into the index's components. Up to 20% can go into futures, options, swaps, cash or other securities that help it track the index. BFA can add or replace underlying funds at any time. It may face a conflict of interest here, because BlackRock earns fees from those funds. Turnover was 5%, and the fund may lend up to one-third of its assets.

• AOM charges 0.15% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
• The fee includes a 0.05% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $15 in the first year and $250 over 10 years (assuming a 5% annual return).

AOM holds a fixed, bond-heavy mix of US and international stock and bond funds, so it can serve as a complete balanced portfolio on its own.

AOM can give a retirement portfolio broad stock and bond exposure in one low-cost fund. Its expense ratio is 0.15%, which works out to $15 in the first year in the SEC's standard $10,000 example. It pays income quarterly. The trailing 12-month yield was 3.17% as of October 27, 2026. The bonds have not always protected it. AOM fell 16.9% in the 2020 COVID crash and recovered in about four months. In 2022, stocks and bonds fell together. AOM lost 19.1% and took about 20 months to recover. That was also its worst calendar year, at −14.46%. Anyone selling shares to cover spending during a stretch like that would have been selling at lower prices for well over a year. The fund's price history does not cover the 2008 crisis. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by other buffer (defined-outcome) funds, largest first.