Asset allocation scorecard

Sources: © 2021 – Morningstar Direct, All Rights Reserved1, and Wells Fargo Investment Institute, as of September 30, 2021. YTD = year to date. YoY = year over year.

Performance results for the Moderate Income, Moderate Growth and Income, Moderate Growth, and 60/40 portfolios are hypothetical and for illustrative purposes only. Index returns do not represent investment performance or the results of actual trading. Index returns reflect general market results; assume the reinvestment of dividends and other distributions; and do not reflect deductions for fees, expenses, or taxes applicable to an actual investment. Unlike most asset-class Indexes, HFR Index returns are net of all fees. Because the HFR Indexes are calculated based on information that is voluntarily provided, actual returns may be higher or lower than those reported. An index is unmanaged and not available for direct investment. Hypothetical and past performance does not guarantee future results.

See “Index Definitions and Asset Class Risk Disclosures” link above for compositions of the Moderate Income, Moderate Growth and Income, Moderate Growth Liquid (three-asset-group), and 60/40 Portfolios, risks and index definitions.

Diversification strategies do not guarantee investment returns or eliminate the risk of loss.

1. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Key Takeaways

  • A diversified portfolio has typically helped smooth out returns over time.
  • Adding alternative investment strategies can help enhance return potential and mitigate risk in a traditional portfolio consisting of stocks and bonds.