The traditional 60/40 portfolio allocation has evolved into an 80/15/5 model as fixed income ETFs now comprise only 16% of total ETF assets, down from 23% in 2020. Equities currently dominate with 80% of allocations, while fixed income products account for just 10% of new ETF launches.
Alternative assets including buffer strategies, covered call funds, and gold and Bitcoin exposure are capturing the remaining 5% allocation. This structural shift reflects changing investor preferences as market participants increasingly diversify beyond conventional bond allocations in favor of equity-heavy and alternative exposure.
Traditional 60/40 Portfolio Shifts to 80/15/5 as Fixed Income ETF Share Declines
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