Best Multi-Asset ETFs

1. SPDR Morningstar Multi-Asset Global Infrastructure UCITS ETF (GIN.L)

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The SPDR Morningstar Multi-Asset Global Infrastructure ETF aims to replicate the performance of the Morningstar Global Multi-Asset Infrastructure index. This index comprises a host of fixed-income securities, including bonds, and equities from around the world. All of which fall under the umbrella of industries linked to global infrastructure.

This multi-asset ETF is an equally weighted fund, meaning there is a healthy balance between fixed-income securities and stocks. Every quarter, the fund managers rebalance the fund to maintain its equal weighting.

SPDR’s Key Investor Information page describes this multi-asset ETF as five out of seven on its risk profile. This means investments in the fund carry a greater than average risk, although there’s also a potential for greater than average returns.

There are no entry or exit fees paid to buy or sell shares in this ETF. However, you do need to factor in the annual management fee of 0.40%.

The listing date of this ETF was April 14, 2015. Between 2019 and 2022, the fund generated a cumulative return on investment of 4.82%. That’s despite experiencing its first negative year in 2022, due largely to rising inflation that’s impacted the price of precious commodities and general overheads.

Fund size: £1.441 billion
Annual charges: 0.40%
Dividend yield: 2.56%
Best suited to: retail investors keen to get exposure to industries playing an integral role in the futureproofing of global infrastructure.

2. BlackRock ESG Multi-Asset Growth Portfolio UCITS ETF (MAGG.L)

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In 2020, BlackRock unveiled a new range of ESG-focused multi-asset ETFs, with the Multi-Asset Growth Portfolio ETF proving to be a big success in recent years. The ESG multi-asset funds are also investable through iShares ETFs, which are owned by BlackRock. This Growth Portfolio ETF carries a total expense ratio of 0.25%, which is almost half the size of the annual charges incurred with the SPDR Morningstar Multi-Asset Global Infrastructure ETF.

This is an actively managed fund that invests in a string of ETFs spanning a broad range of sectors. All of them have significant growth potential. At least 80% of all ETFs within the fund are hand-picked by fund managers due to meeting stringent environmental, social, and governance (ESG) criteria.

On the whole, this multi-asset ETF is described by BlackRock as having a “growth risk profile”. This puts it at the more volatile end of the risk-reward spectrum. Almost half (45.71%) of the asset classes within this ETF are based in the US, so it’s heavily skewed towards growth in the American economy. The country with the second-largest weighting of assets is Japan (5.41%), followed by China (3.47%).

This is one of three ESG-focused multi-asset ETFs from BlackRock that are eligible for investing as part of a Stocks and Shares ISA or within a self-invested personal pension (SIPP). If you’re thinking of investing with a Stocks and Shares ISA, be mindful of the maximum annual allowance you can invest tax-free, which currently stands at £20,000 per annum. However, all profits within a Stocks and Shares ISA are also free from capital gains tax.

Fund size: £43.10 million
Annual charges: 0.25%
Dividend yield: 0%
Best suited to: retail investors prepared to take more risks in multiple asset classes with high-growth potential, which may be a good starting point for early-stage pension savers.

3. VanEck Multi-Asset Balanced Allocation UCITS ETF (VNTM.MI)

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VanEck is an investment firm that designs and manages ETF solutions across a range of asset classes and markets, including its balanced Multi-Asset ETF. Developed with the goal of making multi-asset investing “within reach of the average investor”, VanEck’s Multi-Asset Balanced Allocation ETF features over 250 assets, spanning equities as well as investment-grade corporate bonds, government bonds, and even real estate stocks.

The fund itself is rebalanced annually, ensuring each asset class has a fair weighting every 12 months. Since its inception in December 2009, VanEck has boasted a proud reputation for delivering consistent and attractive returns for retail investors.

The make-up of this Multi-Asset Balanced Allocation ETF means that this fund is more defensive than the likes of the BlackRock ESG Multi-Asset Growth Portfolio. Described as a “medium risk” ETF by VanEck, this fund may be a more attractive option if you consider yourself a risk-averse investor. The top three holdings by percentage of net assets in this fund are government bonds from France, Spain, and Italy, respectively.

Annual management fees for this multi-asset ETF weigh in at 0.30%, which is pretty competitive considering its track record for solid returns. As with the BlackRock multi-asset ETFs, VanEck’s offering is also eligible for use within a Stocks and Shares ISA or a SIPP.

Fund size: £24.60 million
Annual charges: 0.30%
Dividend yield: 1.73%
Best suited to: retail investors looking for a balanced and sustainable portfolio across fixed-income securities, equities and real estate.

4. BlackRock ESG Multi-Asset Moderate Portfolio UCITS ETF (MAMG.L)

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The ESG Multi-Asset Moderate Portfolio ETF is the second of three BlackRock ESG ETFs that I’m featuring in this article. This multi-asset, actively managed ETF adopts a moderate risk profile, investing in a balanced cluster of ETFs, 80% of which meet BlackRock’s ESG criteria.

By investing in a diversified portfolio of ETFs, this portfolio offers immediate exposure to hundreds, if not thousands, of individual equities and fixed-income securities like government bonds and investment-grade corporate bonds.

Since its inception in 2020, the fund has made a return on investment of 2.96%. Although this might not sound much, the fund was up more than 18% by January 2022. The onset of the war in Ukraine and the rapid acceleration of inflation on a global scale then hit funds like these very hard through 2022.

By October 2022, the fund was down 2.57% since September 2020. So, its recovery to a positive 2.96% demonstrates growth of more than 5% between October 2022 and June 2023.

A closer look at the breakdown of exposure within the BlackRock ESG Multi-Asset Moderate Portfolio ETF shows that the banking sector (6.55%) carries the highest weighting in the fund, followed by financial services (4.73%), pharmaceuticals, biotech, and life sciences (4.46%), and capital goods (4.34%). The fund is spread between equities (53.24%), fixed-income securities (46.45%), and cash and/or derivatives (0.31%).

Fund size: £26.68 million
Annual charges: 0.25%
Dividend yield: 0%
Best suited to: retail investors looking to invest in an ETF with a healthy balance between risk and reward.

5. BlackRock ESG Multi-Asset Conservative Portfolio UCITS ETF (MACG.L)

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The ESG Multi-Asset Conservative Portfolio ETF is the third and final BlackRock multi-asset ETF I’m covering in this article. It is geared towards those who are most risk-averse, with a greater weighting towards fixed-income securities like government and corporate bonds instead of equities.

Ordinarily, this would result in a modest but by no means spectacular return on investment. However, the conservative approach has been proven to be hardest hit during 2022, when inflation spiked hard and central banks were forced to hike their interest rates quickly. This multi-asset ETF posted a loss of 13.74% in 2022, compared with its 3.37% gain in 2021.

The fund’s top holdings include individual ETFs on US government bonds with one- to three-year maturities and seven- to ten-year maturities, as well as government bonds with the European Central Bank (ECB) and corporate bonds with ESG-friendly companies with zero- to three-year maturities.

Although 6.53% of holdings within this multi-asset class ETF are US-based, the rest of it is spread equally across the rest of the world. There’s no dominant sector within this diversified conservative portfolio either, with technology (3.23%) only narrowly ahead of healthcare (2.86%) and financials (2.81%). This is a healthy balance that, in most economic climates, should generate a steady return over time.

Do bear in mind that this multi-asset ETF is the smallest of all the funds I’ve reviewed in this article. In fact, the net asset value of the SPDR Morningstar Multi-Asset Global Infrastructure ETF dwarfs that of this fund. It’s more than 100 times its size. However, it has been trading for five years longer than this portfolio and has an altogether different remit.

Fund size: £12.25 million
Annual charges: 0.25%
Dividend yield: 0%
Best suited to: retail investors taking a safe, steady investment strategy during times of economic growth and controlled inflation.