Model Portfolio
Performance and positioning update:
- Performance across the risk profiles within the Target Allocation ETF model portfolios delivered positive absolute performance.
- Softer relative returns were due to de-risking portfolios ahead of the uncertain US presidential election, and equities positioning, especially in AI/semiconductors, slightly trailed benchmark indices.
- Underweighting China, a small part of our equity benchmark, modestly detracted from returns, while fixed income, particularly longer-term US treasuries and convertible bonds, outperformed broader bond indices.
Market performance: September 2024
Source: BlackRock. Monthly returns for the period 9/1/24 – 9/30/24. U.S. large cap stocks represented by the S&P 500 Index; U.S. small cap, Russell 2000 Index; international developed, MSCI EAFE Index; emerging market stocks, MSCI Emerging Markets Index; Treasury bonds, Bloomberg U.S. Treasury 7-10 Year Total Return Index; corporate bonds, Bloomberg U.S. Aggregate Bond Index; high yield bonds, Bloomberg High Yield 2 Issuer Capped Index; EM bonds, JP Morgan Emerging Market Bond Index-Global. Index performance is for illustrative purposes only. Index performance does not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
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Michael Gates
Michael Gates, CFA, Managing Director, is the head of Model Portfolio Solutions in the Americas within BlackRock's Multi-Asset Strategies & Solutions group.
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