# Allocation funds: what a stock-share band tells you

> Learn how ETFIQ places allocation ETFs in five bands by the share they hold in stocks, and why a band is not a risk rating, with real 10-year data.

Data as of Oct 30, 2026. Rebuilt every trading night.

## Allocation funds: what a stock-share band tells you

Data as of Oct 30, 2026. Rebuilt every trading night.

Over the 10 years to Oct 30, 2026 , AOR, at 61.1% stocks, fell 22.95% at its worst, while GYLD, at 59.3% stocks, fell 47.88% .

Allocation and Risk · Lesson 3 of 7 1 2 3 4 5 6 7

Set an amount. See the dollars each fund lost at its worst ten-year fall, from 31% to 80% stocks. Amount (hypothetical) $10,000 On $10,000: AOK, 31.1% stocks $1,894, AOM, 41.3% $1,996, AOR, 61.1% $2,295, GYLD, 59.3% (same band as AOR) $4,788, AOA, 80.6% $2,838. Hypothetical amount. Stock shares from holdings dated Jul 31, 2026; falls over the 10 years to Oct 30, 2026. Step 1: the band comes from holdings, not the name. Four iShares funds, by their holdings filed for Jul 31, 2026 : Step 2: more stocks, bigger swings. Over the same ten years, Oct 31, 2016 to Oct 30, 2026 , from monthly returns: Step 3: same band, a different ride. GYLD, the Arrow Dow Jones Global Yield ETF, tracks an index of high-yielding assets worldwide. It held 59.3% stocks on Jul 31, 2026 . That is the Moderate band, beside AOR. Over the same ten years:

### The question

An allocation fund holds stocks and bonds in one ETF. Its name says "Conservative" or "60/40". How do I know what it really holds, and how bumpy it will be?

### The idea

- ETFIQ places every allocation fund by one measured number: its stock share , the percent of its money in stocks. It reads this looked through : when a fund holds other funds, ETFIQ counts the stocks inside them. The stock share puts the fund in one of five bands :

| Band | Stock share |
| --- | --- |
| Conservative | over 15% to 30% |
| Moderately conservative | over 30% to 50% |
| Moderate | over 50% to 70% |
| Moderately aggressive | over 70% to 85% |
| Aggressive | over 85% |

- A fund with 15% or less in stocks is not an allocation fund. Each band has a matching ETFIQ benchmark ( Beginner lesson 3 ): Strategic 20, 40, 60, 80 or 95, named for its percent in stocks.

- The band tells you the mix. It does not tell you the risk. For that, read the fund's own realised volatility ( lesson 1 ): how much its returns actually swung.

### Worked example

The 3 steps beside the drawing at the top work this through on ETFIQ data. Point at a step to light the part of the drawing it describes.

| Fund | Name says | Stock share | Band |
| --- | --- | --- | --- |
| AOK | 30/70 Conservative | 31.1% | Moderately conservative |
| AOM | 40/60 Moderate | 41.3% | Moderately conservative |
| AOR | 60/40 Balanced | 61.1% | Moderate |
| AOA | 80/20 Aggressive | 80.6% | Moderately aggressive |

AOK's name says 30% and "Conservative". It held 31.1% , just over the 30% line, so ETFIQ places it one band up and measures it against Strategic 40.

| Fund | Stock share | Volatility | Worst fall |
| --- | --- | --- | --- |
| AOK | 31.1% | 6.90% | −18.94% |
| AOM | 41.3% | 7.76% | −19.96% |
| AOR | 61.1% | 9.99% | −22.95% |
| AOA | 80.6% | 12.28% | −28.38% |

From AOK to AOA, the stock share rose by 49.5 points and volatility rose by about three quarters: 12.28 ÷ 6.90 = 1.78 . For these plain index mixes, the band is a good guide.

- Volatility: GYLD 17.00% , AOR 9.99% . 1.7 times the swing.

- Worst fall: GYLD −47.88% , from Jan 24, 2018 to Mar 23, 2020 . AOR's was −22.95% .

Same stock share, same band, more than twice the worst fall. Which stocks and bonds a fund holds shapes the ride as much as how much it holds in each. That is why ETFIQ prints volatility beside the band on every row.

### The common mistake

"Moderate means moderate risk." The band is a rule about the mix. AOR and GYLD share a band and swung very differently. Read the band for the mix, then volatility and worst fall for the ride.

A second mistake: trusting the name. "Conservative" is the issuer's word; the band is a dated measurement.

### Check your understanding

Pick an answer to see why. Two of three right passes the lesson.

1. A fund holds 72% in stocks, looked through. Which band is it in? A Moderate B Moderately aggressive C Aggressive D It depends on the name Answer: B. Moderately aggressive. 72% is over 70% and up to 85%. Not A: Moderate stops at 70%. 2. A fund named "Balanced Growth" holds 45% stocks. Which ETFIQ benchmark is it measured against? A Strategic 60, because "balanced" suggests 60/40 B The S&P 500 C Strategic 80, because of "Growth" D Strategic 40, because 45% sits in the 30% to 50% band Answer: D. Strategic 40, because 45% sits in the 30% to 50% band. The band comes from the measured stock share, and that band's benchmark is Strategic 40. Not A: the name is not a measurement. 3. Two funds sit in the Moderate band. One swung 9% a year over ten years, the other 16%. What is the best reading? A They hold a similar share in stocks, but very different stocks or bonds B One of the numbers must be wrong C The 16% fund has more stocks D They will have the same worst fall Answer: A. They hold a similar share in stocks, but very different stocks or bonds. The band fixes the stock share, not which stocks and bonds. Not C: both are between 50% and 70% stocks; the difference is in what they hold.

### Takeaways

- Find a fund's band from its measured stock share, never from its name.

- Read volatility and worst fall beside the band; the band is the mix, not the risk.

- Judge an allocation fund against the benchmark for its band.

### Do it on ETFIQ

Find any allocation fund's band and its swings Your fund

### Where to next

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Source: ETFIQ, independent ETF data. Recomputed nightly from public filings and prices.
Cite: ETFIQ, Allocation funds: what a stock-share band tells you, data as of Oct 30, 2026. https://etfiq.com/academy/allocation-and-risk/allocation-funds/
Licence: https://etfiq.com/license/ Data ETFIQ computes is free to use with attribution: ETFIQ (etfiq.com). Issuer data stays under its owner's terms.
HTML: https://etfiq.com/academy/allocation-and-risk/allocation-funds/