iShares Core 40/60 Moderate Allocation ETF (AOM) Covered Calls

The iShares Core Moderate Allocation ETF (AOM) is a fund-of-funds that provides diversified exposure to a global mix of equities and fixed income. The fund targets a moderate risk profile by holding a basket of other iShares ETFs, maintaining an asset allocation of approximately 40% stocks and 60% bonds. It is designed to offer a streamlined, low-cost solution for investors seeking a balanced portfolio that generates income and provides long-term capital appreciation potential.

You can sell covered calls on iShares Core 40/60 Moderate Allocation ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for AOM (prices last updated Mon 11:45 AM ET):

Want to make money with covered calls?  Sign Up For A Free Trial

Core Business and Products

The iShares Core Moderate Allocation ETF (AOM) is a multi-asset allocation fund that offers a turnkey solution for long-term investors. By holding a basket of underlying ETFs—which include exposure to total U.S. and international bond markets, as well as U.S. and global equity markets—AOM provides instant diversification across asset classes and geographies. This strategy is specifically intended for investors who want a hands-off approach to maintaining a consistent, moderate-risk posture.

The fund's allocation is governed by the S&P Target Risk Moderate Index, which dictates the mix of equities and bonds. This automated rebalancing process removes the burden of manual asset allocation from the investor, ensuring the portfolio remains aligned with its moderate mandate over time. Given its primary focus on broad-based asset allocation rather than tactical trading, it is a stable, income-yielding vehicle rather than an instrument for active speculation.

Competitive Landscape

AOM operates in the target risk category, competing with various balanced and allocation-focused products. Its closest peers include other multi-asset allocation ETFs like the iShares Core Conservative Allocation ETF and the iShares Core Growth Allocation ETF. These funds are often used as foundational building blocks for retirement or long-term savings portfolios. The fund is issued by BlackRock, which manages a vast ecosystem of investment products.

Because AOM is a passive fund-of-funds, it does not typically compete with the highly liquid, sector-specific or thematic ETFs that are commonly traded using options. Investors should view it strictly as a long-term buy-and-hold asset for core portfolio diversification.

Strategic Outlook and Innovation

The strategic outlook for AOM is defined by its role as a steady-state core holding. In an environment of market volatility, its blend of assets is designed to provide a smoother ride than a pure equity portfolio, while offering more growth potential than a pure bond fund. Its low expense ratio and broad underlying holdings make it an efficient vehicle for maintaining a disciplined asset allocation.

Innovation in this space is characterized by the ongoing refinement of index-based asset allocation. As providers continue to optimize the underlying ETFs used in these products, investors benefit from lower transaction costs and improved tax efficiency. For a long-term investor, AOM represents a simple, transparent, and low-cost solution for managing risk without needing to actively monitor individual market shifts.

Want more examples? AOA Covered Calls | AON Covered Calls