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How Have Allocation Funds Done This Year?

With their smaller equity stakes, conservative-allocation funds have performed best, while tactical-allocation funds have turned in the worst results.


Janet Yang: We've seen some pretty choppy markets so far in 2015. Stocks, overall, have trailed bonds. The last year that happened was more than three years ago, back in 2011.

Under that backdrop, it make sense that conservative-allocation funds have generally come out ahead of moderate-allocation funds--which, in turn, came out ahead of aggressive funds. The conservative funds tend to have the smallest stakes in equities, while the aggressive ones usually have the most.

Janet Yang, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.