This formerly stellar conservative ETF
was off 8.61% YTD before today. With a slight .11% gain today, it’s still down 8.5% YTD. I’ve long watched it; owned it briefly earlier this year before discarding it. The fund allocates 30% to equities and 70% to fixed income. For comparison, after today the Dow Jones is down only about 3.5% YTD and the S&P about 6.4%.
What’s the point here? Only to demonstrate the remarkable degree of carnage the bond avalanche has wrought upon previously fine funds with a reputation for “preserving capital”. - Yeah.
Question? What does the future hold for AOK and a whole legion of formerly considered “safe” funds with similarly heavy fixed income / bond holdings? Do you ever expect them to recover their former safe haven status? Get back to “break-even”? When might that be? I haven’t looked at target date funds, but must assume that those structured for capital preservation (late in life investors) have probably lost more this year than their more aggressive brethren.