"AOR operates as a fund-of-funds, holding other iShares ETFs to maintain a 60% equity and 40% fixed income allocation. This delivers instant diversification across thousands of securities spanning U.S. stocks, international equities, and investment-grade bonds. The fund automatically rebalances to maintain its target allocation, eliminating the behavioral challenge of selling winners and buying losers during market extremes. With a 0.15% expense ratio and 5% annual portfolio turnover, AOR keeps costs low while minimizing taxable events."
"AOR returned approximately 14% in 2025 through mid-December, matching the S&P 500's performance despite holding 40% in bonds. Over the past decade, AOR generated roughly 8% annualized returns, capturing meaningful equity upside while the bond allocation dampened volatility. The 2022 bear market tested the 60/40 strategy when both stocks and bonds declined simultaneously. While AOR experienced drawdowns, its diversified structure limited losses compared to pure equity portfolios. The subsequent recovery demonstrates how balanced allocations can smooth the retirement journey without abandoning growth."
Retirees need returns with lower volatility and less portfolio management. AOR packages a 60% equity and 40% fixed income allocation in a single ETF by holding multiple iShares funds. The structure provides diversification across U.S. and international stocks plus investment-grade bonds and performs automatic rebalancing to maintain targets. The fund charges a 0.15% expense ratio, has about 5% annual turnover, and yields roughly 2.5% through consistent dividends since 2008. AOR matched strong equity performance in 2025 and produced about 8% annualized returns over the past decade while reducing drawdowns during stressed markets.
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