Time for a 40/60 ETF Portfolio Instead of 60/40? (4 min read)
Traditional 60/40 portfolios consist of 60% equities and 40% fixed income. This strategy has been time tested and provided a solid return since the 1980s. However, 2022 has yielded the worst return for this classic strategy. With interest rates continuing to rise and likely to stay elevated in the near future, a 40/60 portfolio instead might be more suitable in the current environment. Zacks research shared a sample ETF model that follows a 40/60 portfolio. More on the sub-asset classes, allocation, and an ETF example for each are available in the article.