What are balanced funds & how do they work?

Allocations can vary by the fund’s strategy. Balanced funds come as ETFs or mutual funds. ETFs are exchange-traded funds that hold baskets of securities, similar to the structure of mutual funds. Unlike mutual funds, ETFs trade throughout the day on an exchange like stocks do.

Is a balanced fund a good investment?

Balanced funds offer a diversified portfolio to investors that is likely to be less volatile than a fund that only holds stocks. A balanced fund will also provide more growth than a bond-only fund because it has exposure to stocks. It is truly a balanced portfolio strategy.

What are the best balanced mutual funds & exchange-traded funds in 2024?

Here are seven of the best balanced mutual funds and exchange-traded funds (ETFs) to pick in 2024: "VBIAX is a way to gain exposure to both stocks and bonds as it tracks two indexes that represent broad barometers for the U.S. equity and taxable-bond markets," says Lauren Wybar, senior wealth advisor at Vanguard.