AOA vs HECA

AOAAiShares Core 80/20 Aggressive Allocation ETF

HECACHedgeye Capital Allocation ETF

In short

AOA A whole portfolio in one ticker. Since 2008, AOA has held a fixed 80/20 mix of global stock and bond index funds, with its index rebalancing the split back to target twice a year. No spreadsheet required.

HECA A research shop's macro call, wrapped in an ETF. Hedgeye actively shifts among stocks, bonds, commodities and currencies (mostly via other ETFs) and writes a 15% peak-to-trough NAV drawdown limit into its own objective, which the prospectus does not guarantee.

Stated mandate

AOA The Fund seeks to follow an index of equity and fixed-income ETFs designed for an aggressive target-risk allocation. It offers a diversified portfolio emphasizing growth and relatively higher equity exposure.

HECA The Fund actively allocates among equities, bonds and other debt instruments, commodities, and currencies, primarily through ETFs. It seeks to maximize returns over rolling 12-month periods while limiting peak-to-trough NAV declines to 15%, without guaranteeing that outcome.

Why people hold it

• AOA One trade buys a handful of underlying iShares index funds spanning global stocks and bonds, with the 80/20 split set by index rule rather than a manager's judgment call.ishares.comspglobal.com
• Costs 0.15% net of a waiver through November 30, 2026 (0.19% gross), below the median fee in its allocation category.
• Live since November 2008 and now a multi-billion-dollar fund, it has run the same target-risk mandate through the financial crisis and everything after.ishares.com
• Among the strongest implementations in a crowded field of allocation funds, and it pays out quarterly.

• HECA The mandate is built around drawdowns, not a fixed 60/40: it aims to maximize returns over rolling 12-month periods while holding peak-to-trough NAV declines to 15%.sec.gov
• Four asset classes in one ticker: equities, bonds and other debt, commodities and currencies, held largely through other ETFs, so the mix can rotate as the macro view changes.
• Run by Hedgeye Asset Management, which applies its own macro research and risk framework here instead of licensing an outside index, an unusual setup in a category dominated by static blends.hedgeye.com

Worth knowing

• AOA Eighty percent equity means it rides global stock swings closely. The 20% bond sleeve softens drawdowns rather than stopping them.spglobal.com
• That 0.15% is net of a contractual waiver through November 30, 2026. The gross 0.19% is the figure that applies if the waiver is not renewed.
• Cheaper one-ticket rivals now exist: UCBG at 0.06% and IRTR at 0.08%. IRTR also glides its risk down over time, while AOA's 80/20 stays put.

• HECA Active judgment costs 0.81%, with no fee waiver and above the category median; index-built peers such as AOA (0.15% net of a waiver through November 30, 2026) and IRTR (0.08%) sit far lower.
• The 15% drawdown figure is a target the fund states it cannot promise, and a discretionary macro call can trail a plain stock-and-bond mix when markets simply run.
• Launched in 2025, so the track record is short next to allocation funds with decades behind them, and it distributes only once or twice a year.

Full AOA profile⁠

Full HECA profile⁠