Jason Kephart: For over a decade, US stocks have dominated the global stage—outperforming the rest of the world in 12 of the last 15 years. But so far in 2025, the tables have turned. The Morningstar Global Markets ex US Index has gained about 7% through early March, and the Morningstar US Market Index has lost about 2%. You don’t have to believe a great rotation is underway to realize having some international stocks in your balanced portfolio will help with diversification. And there’s no better defense against the unknown than diversification. So I hope you have your passport ready because today we’re going to talk about three great balanced funds that invest across the globe.
3 Great Balanced Funds for 2025
- Vanguard LifeStrategy Moderate Growth VSMGX
- American Funds Global Balanced GBLAX
- JPMorgan Global Allocation GAOAX
Kicking off our list is Vanguard LifeStrategy Moderate Growth VSMGX. This balanced fund goes global, with more international stock and bond exposure than most of its peers. Its equity sleeve follows a 60/40 split between US and international stocks, making it slightly underweight the global market cap weight of US. On the bond side, 30% of its fixed-income allocation goes to Vanguard Total International Bond Market BNDX, which hedges currency exposure back to the US dollar—because no one likes surprises, especially in bond volatility. And with an expense ratio of just 13 basis points, this fund is like finding a first-class ticket to global diversification at economy pricing. If you’re looking for a balanced fund with a worldly perspective, this is a solid place to start.
The second fund on our list takes a more active approach to investing across borders. The managers steering American Funds Global Balanced GBLAX leverage Capital Group’s renowned stock and bond managers to let their bottom-up research drive the portfolio tilts. Although it sticks close to 60% stocks and 40% bonds, the underlying managers drive the geographic shifts based on where they are finding the best opportunities. The fund aims for a dividend yield at least 10% higher than the MSCI All Country World Index, which gives it a defensive edge and a slight value tilt. But don’t think the managers are dividend snobs—if they spot a too-good-to-pass-up growth opportunity, they’re willing to bend the rules and grab stocks with modest payouts—or none at all. For example, Amazon AMZN is a top holding that was added to the portfolio in 2023. At the end of 2024, the stock portfolio was also leaning more into non-US stocks than their global market-cap weight.
And last but not least, we’ve got a fund that takes the best of both worlds—bottom-up stock- and bond-picking meets top-down big-picture thinking—all wrapped up in the hands of a topnotch investment team. It’s like having both a microscope and a crystal ball—because why choose one when you can have both? Meet JPMorgan Global Allocation GAOAX. Like the other funds on this list, it targets a 60/40 stock and bond split, but it has a lot more flexibility with the ability to swing its equity exposure based on the portfolio manager’s six- to 18-month views. The stock portion has ranged from a low of 34% to a high of 75%, and more recently, it’s been flirting with 70%, with more of a tilt toward US stocks than the other funds on this list. But the team’s views can change quickly when new information presents itself. Its bond portfolio can also be more adventurous, with at times hefty stakes in high-yield bonds. But we’re confident lead PM Jeffrey Geller can continue to navigate this strategy successfully through choppy markets.
Safe travels!
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