Balanced and multi-asset income ETFs hold stocks and bonds in one fund. Here are the main options, their distribution yields, and which pay monthly — plus how to build a monthly-paying 60/40 yourself for a fraction of the cost.
Updated October 13, 2026 · yields reviewed August–September 2026 · DIY monthly 60/40
| Ticker | Name | Asset mix | Yield | Expense Ratio | Pays |
|---|---|---|---|---|---|
| MDIV | First Trust Multi-Asset Diversified Income Index Fund | Dividend stocks, preferreds, REITs, MLPs, high-yield bonds | ~6.9% | 0.83%* | Monthly |
| HNDL | Strategy Shares Nasdaq 7HANDL Index ETF | ~50/50 stock/bond ETFs, 1.3x leverage, 7% target payout | ~7.0% | ~0.95%* | Monthly |
| INCM | Franklin Income Focus ETF | Active mix of bonds, dividend stocks, convertibles | ~5.2% | 0.38% | Monthly |
| IYLD | iShares Morningstar Multi-Asset Income ETF | Fund of iShares bond, equity-income and REIT ETFs | ~4.6% | ~0.49%* | Monthly |
| INKM | State Street (SPDR) Income Allocation ETF | Fund of SPDR income ETFs across stocks and bonds | ~4.7% | 0.50%* | Quarterly |
| AOK | iShares Core 30/70 Conservative Allocation ETF | 30% stocks / 70% bonds index funds | ~3% | ~0.15%* | Quarterly |
| AOM | iShares Core 40/60 Moderate Allocation ETF | 40% stocks / 60% bonds index funds | ~3% | ~0.15%* | Quarterly |
| AOR | iShares Core 60/40 Balanced Allocation ETF | 60% stocks / 40% bonds index funds | ~2.5% | ~0.15%* | Quarterly |
Yields are approximate trailing or stated distribution rates from issuer and data-provider pages, August–September 2026. * Total cost including the fees of underlying funds. Distributions and fees change — confirm with the issuer before investing.
"Balanced" covers two quite different kinds of fund, and their yields are not comparable:
Mutual funds such as Vanguard Balanced Index (VBIAX) and Wellesley Income are the traditional versions of the same idea. They are not ETFs and typically distribute quarterly.
The higher a balanced fund's payout, the more it relies on high-yield credit, leverage, or return of capital. Use the yield as a description of the strategy, not a measure of how good it is.
If you are comfortable holding two or three funds, you can get monthly distributions, a higher yield than AOR, and lower fees than most multi-asset funds:
| Mix | Holdings | Approx. yield | Blended fee | Pays |
|---|---|---|---|---|
| Income 60/40 | 60% JEPI / 40% BND | ~6.6% | ~0.22% | Monthly |
| Qualified-dividend 60/40 | 60% SPHD / 40% BND | ~4.5% | ~0.19% | Monthly |
| Growth + income 60/40 | 30% SCHD / 30% JEPI / 40% BND | ~5.3% | ~0.14% | Monthly (SCHD quarterly) |
| Conservative 40/60 | 40% JEPI / 60% BND | ~5.7% | ~0.16% | Monthly |
Yields are weighted averages of each fund's trailing yield on this site and will drift. The DIY route lets you hold the bond sleeve in an IRA and the qualified-dividend fund in a taxable account, which a single balanced fund can't do. You do have to rebalance yourself — once a year is usually enough. Model the cash flow with the income visualizer or the portfolio builder.
MDIV, HNDL, INCM, and IYLD all pay monthly. The best-known balanced index funds, the iShares AOK/AOM/AOR/AOA series, pay quarterly. You can also build a balanced portfolio that pays monthly by pairing a monthly equity-income ETF such as JEPI or SPHD with a monthly-paying bond ETF such as BND.
A plain 60/40 index fund like AOR yields roughly 2–3%, because it blends a ~1.3% stock-market yield with a ~4% bond yield. Income-focused multi-asset funds (INCM, IYLD, INKM) yield around 4.5–5.5%, and MDIV and HNDL distribute about 7% — but part of HNDL's payout can be return of capital.
It can be a one-fund solution: the stock and bond mix is rebalanced for you, and monthly payers like INCM or IYLD turn it into a paycheck. The trade-off is less control over tax placement and, for the higher-yield funds, higher fees than building the same mix yourself from SCHD, JEPI, and BND.
Only partly. Interest from the bond sleeve is taxed as ordinary income, REIT and MLP payouts are mostly non-qualified, and HNDL can pay return of capital. Expect a lower qualified share than a pure equity fund like SCHD, which is why multi-asset income funds often sit in IRAs.
Funds of funds (IYLD, INKM, HNDL, MDIV, AOR/AOM/AOK) hold other ETFs, so their total cost includes the underlying funds' fees ("acquired fund fees"). The figure shown is the total cost as reported by the issuer or major data providers.