Aggressive Allocation Fund: A Comprehensive Guide

An aggressive allocation fund is a type of investment vehicle that seeks to maximize returns by taking on a higher level of risk. It's typically composed of a mix of stocks, bonds, and other securities, with a focus on growth over income.

These funds often have a higher proportion of stocks than bonds, which can result in higher potential returns, but also increased volatility. As a result, they may not be suitable for investors who are risk-averse or close to retirement.

Investors who are comfortable with taking on more risk may find an aggressive allocation fund appealing, as it can potentially lead to higher returns over the long-term. However, it's essential to carefully consider your financial goals and risk tolerance before investing in such a fund.

This aggressive allocation fund is suitable for investors with a long-term investment horizon and a relatively high tolerance for risk.

Investors can expect the fund to hold a mix of U.S. and international stocks, which may involve additional risks such as social and political instability.

The fund's portfolio is diversified across various sectors, including large cap equity, mid cap equity, and small cap equity, with a breakdown of 45.79%, 21.05%, and 9.72% respectively.

Here's a breakdown of the fund's sector allocation:

This Fund may be suitable for investors who have a long-term investment horizon.

Investors with a relatively high tolerance for risk may find this Fund appealing.

Foreign and emerging market securities may involve additional risks.

Social and political instability is one of the risks associated with foreign and emerging market securities.

Reduced market liquidity and currency volatility are also potential risks.

Small company stocks are generally riskier than large company stocks.

Less liquidity and greater volatility are characteristics of small company stocks.

The fees associated with this investment fund are relatively low. The management fee is 0.15% of your investment.

The fund also charges 0.04% for acquired fund fees and expenses. This is a common fee for investment funds that invest in other funds.

Other expenses, however, are negligible at 0.00%. This is a good sign, as it means the fund is not passing on any significant costs to investors.

The total expense ratio is 0.19%, which is a combination of the management fee, acquired fund fees, and other expenses.

Here is a breakdown of the fees:

The net expense ratio is 0.15%, which is lower than the total expense ratio. This is because the fund offers some fee waivers, which reduce the net expense ratio.

The aggressive allocation fund's performance metrics are a key area of focus for investors. The fund's current year performance stands at 4.15%.

In terms of risk, the fund's beta is relatively low, ranging from 0.65 to 0.75 over different time periods. This suggests that the fund's returns are less volatile compared to the market.

Here are some key performance metrics for the aggressive allocation fund:

The fund's trailing return since inception is 5.72%, indicating a steady growth over time. Its trailing return YTD (year to date) is 2.82%, showing a relatively stable performance in the current year.

As you evaluate the performance of a fund, it's essential to understand how its prices and distributions have changed over time.

The graph below shows the daily prices, also known as net asset value or NAV, for the selected time period. This visual representation gives you a quick glance at how the fund's price has fluctuated.

Capital gains and dividend distributions are represented by various time periods, including 1M, 3M, 6M, 1Y, 3Y, 5Y, and MAX.

The table below lists the NAVs, dividends, long-term capital gains, and short-term capital gains for the selected time period.

Performance metrics are a crucial aspect of evaluating investment strategies. The performance of an investment can be measured in various ways, including its returns over a specific period, its risk, and its ability to outperform a benchmark.

The current year's performance is 4.15%, which is a decent return. The performance since inception is a staggering 184.77%, indicating a significant long-term growth.

Investors often look at the high and low points of an investment's performance over a year. In this case, the high point was 8.79% and the low point was 7.82%.

Here are some key performance metrics:

The risk-adjusted return is another important metric. The 10-year risk-adjusted return is 3.14%, while the 5-year risk-adjusted return is 0.81%. These numbers indicate that the investment has provided a relatively stable return over the long term.

Investors should also consider the correlation between the investment and a benchmark. The 1-year correlation is 92.05%, indicating a strong relationship between the two.

An aggressive allocation fund like the Thrivent Aggressive Allocation Fund is designed to take on more risk in pursuit of higher returns. This means it's essential to understand its characteristics before investing.

The fund's equity characteristics are compared to the S&P 500 Index. The Price to Earnings Ratio (P/E) for the Thrivent Aggressive Allocation Fund is 24.08, indicating that investors anticipate higher earnings in the future. For comparison, the S&P 500 Index has a P/E ratio of 27.37.

The Return on Equity (ROE) for the Thrivent Aggressive Allocation Fund is 21.44%, which is lower than the S&P 500 Index's 28.77%. A higher ROE is typically seen in high growth companies.

Here's a summary of the fund's equity characteristics compared to the S&P 500 Index:

In the fixed income area, the Thrivent Aggressive Allocation Fund has a duration of 5.65, which is slightly shorter than the Bloomberg U.S. Aggregate Bond Index's 5.95. This suggests the fund is slightly less sensitive to changes in interest rates. The average life of the fund's bonds is 7.54 years, which is also slightly shorter than the index's 8.46 years.

The charges associated with this fund are quite detailed, and it's worth taking a closer look.

The total expense is 0.3207%.

The advisor fee expense accounts for the largest portion of the charges, at 0.2983%. This suggests that the advisor plays a significant role in managing the fund.

The auditor fee expense is relatively small, at 0.0175%, which is a standard cost associated with ensuring the fund's financial statements are accurate.

The board of directors fee expense is also a relatively minor charge, at 0.0047%. This fee is likely used to cover the expenses of the board members.

Other fee expense is the smallest charge, at 0.0002%. This fee is likely used to cover any miscellaneous expenses not covered by the other charges.

Here's a breakdown of the charges:

Fund Diversification is a crucial aspect of any investment fund. It's a way to spread risk by investing in a variety of assets.

A fund's sector breakdown can give you an idea of where your money is being invested. For example, the fund in question has a sector breakdown that's updated quarterly.

The breakdown shows that Large Cap Equity makes up a significant portion of the fund, at 45.79%. This means that a large chunk of the fund's investments are in well-established, large-cap companies.

Mid Cap Equity and Small Cap Equity also make up a decent portion of the fund, at 21.05% and 9.72% respectively. This suggests that the fund is taking some risk by investing in smaller companies.

International Equity accounts for 12.01% of the fund, which means that some of the investments are outside of the US. This can be a good way to diversify and reduce risk.

Other notable sectors in the fund include Private Equity at 1.55% and Securitized Debt at 2.14%. These sectors are typically less liquid and can be riskier.

Here's a breakdown of the fund's sector allocation:

This breakdown can help you understand how your money is being invested and make informed decisions about your investments.

Equity Characteristics are a crucial aspect of evaluating a fund's performance. A high Price to Earnings Ratio (P/E) generally means investors anticipate higher earnings in the future.

Most useful when compared to like investments or historical performance, a P/E ratio can be a valuable tool for investors. Let's take a look at the P/E ratio of the Thrivent Aggressive Allocation Fund, which is 24.08.

The S&P 500 Index has a P/E ratio of 27.37, which is slightly higher than the fund's ratio. Return on Equity (ROE) is another important metric, showing how much net income companies in the portfolio have generated as a percentage of shareholder equity.

High growth companies should have a higher ROE, making it a useful tool for comparing profitability to similar investments. The Thrivent Aggressive Allocation Fund has an ROE of 21.44%, while the S&P 500 Index has an ROE of 28.77%.

Here's a comparison of the two funds' equity characteristics:

Fixed Income Characteristics are a crucial aspect of a fund's overall performance. A portfolio's sensitivity to changes in interest rates is measured by its duration, which directly affects its potential risk or reward.

The longer a portfolio's duration, the more sensitive it is to interest rate changes. This means that even small changes in interest rates can significantly impact the portfolio's value.

Average Life is another important metric that indicates the average length of time until the bonds in the portfolio will repay principal. This measure takes into consideration the possibility that bonds might be called back or prepaid by the issuer prior to the maturity date stated on the bond.

A short average life typically indicates a lesser chance that a share price will fluctuate when interest rates change. This is because the bonds are likely to be repaid sooner, reducing the portfolio's sensitivity to interest rate changes.

Here's a comparison of the Thrivent Aggressive Allocation Fund and the Bloomberg U.S. Aggregate Bond Index:

The aggressive allocation fund is a type of investment that's not for the faint of heart. It's designed for those who are willing to take on higher levels of risk in pursuit of potentially higher returns.

The fund's aggressive allocation is evident in its portfolio breakdown, which typically consists of 80-100% equity investments. This means that a significant portion of the fund is invested in stocks, which can be volatile but also offer higher growth potential.

Investors in this fund can expect a significant portion of their portfolio to be invested in domestic and international stocks, with a focus on growth-oriented sectors.

A fund's portfolio can be broken down into several key components, and understanding these can help you make informed decisions about your investments.

The total number of holdings in a fund's portfolio is an important metric to consider, as it gives you a sense of the breadth and diversification of the fund's investments.

A fund with a large number of holdings may be more diversified, but it can also be more difficult to manage. For example, a fund with 100 holdings may be more diversified than one with 50 holdings, but it may also require more time and resources to monitor and adjust.

The turnover ratio is another key metric to consider, as it gives you a sense of how actively the fund is trading its holdings. A high turnover ratio can be a sign that the fund is actively buying and selling securities, which can be a sign of a more dynamic investment strategy.

A fund's U.S. holdings can be an important consideration, especially if you're investing in a fund that focuses on domestic stocks and bonds. In this case, you may want to look at the percentage of U.S. holdings in the fund's portfolio.

In contrast, a fund's non-U.S. holdings can be an important consideration if you're investing in a fund that focuses on international stocks and bonds. In this case, you may want to look at the percentage of non-U.S. holdings in the fund's portfolio.

Let's break down the key characteristics of a portfolio. The ITR metric is calculated, but we don't know much about it yet.

The ITR metric is calculated, but it's not explained in the article.

A portfolio's characteristics are important to understand, but the article doesn't provide much information on this topic.

An aggressive allocation fund like AOA is a simple way to build a diversified core portfolio based on more aggressive risk considerations using one low-cost fund.

This fund leverages the expertise of BlackRock and the efficiency of iShares ETFs to provide a broad mix of global bonds and stocks.

By investing in AOA, you can harness the power of a long-term, balanced portfolio and combine it with other funds to meet specific needs like income generation.

An aggressive allocation fund is a type of investment strategy that aims to maximize returns by investing in a variety of assets, including stocks, bonds, and other securities.

These funds typically have a higher risk profile than other types of funds, as they often invest in assets that are considered riskier, such as small-cap stocks or international stocks.

According to the article, the average allocation for an aggressive fund is around 80-90% stocks, with the remaining 10-20% invested in bonds or other fixed-income securities.

This high allocation to stocks can lead to higher potential returns, but also increases the risk of losses if the market declines.

In a typical aggressive allocation fund, you can expect to see a mix of large-cap and small-cap stocks, with a bias towards growth stocks over value stocks.

The fund's investment objective is to generate returns that are higher than those of a more conservative fund, but this comes with the risk of higher volatility.

Investors who are looking for a more aggressive investment strategy may be interested in an aggressive allocation fund, but it's essential to understand the risks involved before investing.

The fees associated with an aggressive allocation fund can be higher than those of other types of funds, which can eat into your returns over time.

To mitigate this risk, investors can consider investing in a fund that tracks a benchmark, such as the S&P 500, to ensure that their fund's performance is comparable to the broader market.

Ultimately, an aggressive allocation fund can be a good option for investors who are willing to take on higher risk in pursuit of higher returns, but it's crucial to carefully evaluate the fund's investment strategy and fees before investing.