Tactical Allocation

Tactical Allocation funds are mutual funds or ETFs that own a diversified... Tactical Allocation funds are mutual funds or ETFs that own a diversified portfolio of assets. These funds typically own a mix of equities, fixed-income, and cash, and can also own, depending on their mandate, commodities (such as gold), as well as derivatives. These funds tend to be actively managed, with professional managers using both quantitative and qualitative approaches to best determine the ideal basket of assets at any one time. A Tactical Allocation fund may rebalance to owning government bonds when equities appear to be overvalued, and then overweight equities when the stock market has a significant correction. These funds can help retirees meet their goals. These funds tend to be managed with the assumption that a diversified portfolio more weighted towards equities will produce the best risk-adjusted returns over the long term. An advantage of a Tactical Allocation fund is that a fund’s managers may be able to outperform a broad index if they are correct in their investment decisions. There is no guarantee a particular fund will outperform, however. Last Updated: 06/04/2026 View more View less

Tactical Allocation funds are mutual funds or ETFs that own a diversified portfolio of assets. These funds typically own a mix of equities, fixed-income, and cash, and can also own, depending on their... Tactical Allocation funds are mutual funds or ETFs that own a diversified portfolio of assets. These funds typically own a mix of equities, fixed-income, and cash, and can also own, depending on their mandate, commodities (such as gold), as well as derivatives. These funds tend to be actively managed, with professional managers using both quantitative and qualitative approaches to best determine the ideal basket of assets at any one time. A Tactical Allocation fund may rebalance to owning government bonds when equities appear to be overvalued, and then overweight equities when the stock market has a significant correction. These funds can help retirees meet their goals. These funds tend to be managed with the assumption that a diversified portfolio more weighted towards equities will produce the best risk-adjusted returns over the long term. An advantage of a Tactical Allocation fund is that a fund’s managers may be able to outperform a broad index if they are correct in their investment decisions. There is no guarantee a particular fund will outperform, however. Last Updated: 06/04/2026 View more View less