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Seven Top-Rated Allocation Funds Worth a Look Amidst a Backdrop of Market Uncertainty

Diversification is the best defense against the unknown.

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With the presidential election about a month away, heightened coronavirus concerns as fall and winter approach, high unemployment, and numerous other lingering risks, uncertainty remains elevated. Investors looking to diversify their portfolio or put new money to work may want to consider investing in a highly diversified allocation fund to weather this shaky economic backdrop.

Below, we’ve identified seven high-conviction allocation funds that earn Morningstar Analyst Ratings of Gold or Silver. All offer high diversification and generally targeting a 60/40 stock/bond split. Two funds focus primarily on U.S. securities, two have U.S. biases with moderate international exposure, and three have global portfolios. Notably, each fund has a lower-risk profile relative an all-equity portfolio, with each capturing about 60% of the S&P 500’s downside over the past three years.

Leo Acheson does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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