##  [# Balanced ETF Definition](/sections/balanced-etf-definition) 

 

# Balanced ETF Definition

 

 

Learn the definition of balanced etf and other ETF terminology from the etf.com glossary.



 

 

 

 

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[By ETF Glossary](/authors/etf-glossary)

 Dec 08, 2023

 Edited by: ETF.com Staff

 

 

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## Learn more about Balanced ETFs

A balanced ETF, also known as an asset allocation ETF or a hybrid ETF, is a type of exchange-traded fund that invests in a diversified mix of assets, typically including stocks and bonds. The goal of balanced ETFs is to provide investors with a balance of potential for capital appreciation and income generation while also managing risk. Balanced ETFs are designed to offer investors a diversified investment strategy that can help them achieve their long-term financial goals. The asset allocation of a balanced ETF is typically determined by the fund's investment objective and risk profile. For instance, a more conservative balanced ETF may allocate a larger portion of its assets to bonds, while a more aggressive balanced ETF may allocate a larger portion of its assets to stocks. Balanced ETFs are often considered to be a good choice for investors who are seeking a diversified and relatively low-risk investment option. They can also be a suitable option for investors who are approaching retirement and may want to reduce their exposure to stocks and increase their exposure to bonds.

### Related Terms

[Exchange-Traded Fund (ETF)](/etf-education-center/etf-glossary/exchange-traded-fund-etf), [Diversification](/etf-education-center/etf-glossary/diversification), [Asset Allocation](/etf-education-center/etf-glossary/asset-allocation)

 
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  ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock…   [View Bio](/authors/etf-glossary)

 



 

 


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