iShares Core Growth Allocation ETF lags S&P 500 by over 100% in 10 years due to 40% bond allocation drag.

The iShares Core Growth Allocation ETF (AOR), with a 60/40 equity-bond split, returned about 124% over the past decade, significantly underperforming the S&P 500's 261% return. The 40% bond portion has been a drag on returns, especially during periods of rising or high bond yields, which suppress bond prices and returns. While AOR offers lower volatility and smaller drawdowns in bear markets, its rebalancing strategy during bull markets pulls gains from equities into bonds, reducing overall growth. Investors should monitor bond yields, the return gap with the S&P 500, and their own investment horizon to decide if AOR fits their needs.