Beat the S&P 500: Investors Move Beyond 60/40 — ETF Spotlight

Beat the S&P 500: Learn why investors are moving beyond the 60/40 mix in ETF Spotlight with Matt Kaufman — ETF strategies, factor tilts, and diversification.

Can you beat the S&P 500 without taking extreme risk? In a recent episode of ETF Spotlight, Matt Kaufman explains why many investors are rethinking the classic 60/40 portfolio and exploring new ETF strategies aimed at stronger, risk-adjusted returns.

The traditional 60/40 allocation—60% equities, 40% bonds—served investors for decades, but changing market dynamics have reduced its edge. Low bond yields, higher correlations in stressed markets, and rising inflation concerns are prompting investors to look beyond 60/40. As Kaufman outlines, the goal is not necessarily to chase outsized returns, but to improve diversification and manage downside risk while seeking to beat the S&P 500 over time.

So what strategy are investors switching to? Many are turning to ETF-driven, multi-asset approaches that combine broad market exposure with smart beta and factor tilts. Using ETFs, investors can access value, momentum, and low-volatility factors, or add alternative income and commodities exposure, all at low cost. These tactics aim to enhance returns when traditional equities lag and to smooth volatility during downturns—improving the portfolio’s overall risk-adjusted performance compared with a plain S&P 500-only approach.

Implementation matters. Investors often use a core-satellite model: a core of low-cost, broad-market ETFs supplemented with satellite positions in factor, sector, or alternative ETFs. Tactical allocation and periodic rebalancing help capture opportunities and control risk. For more conservative investors, diversifying bond exposures with inflation-protected or short-duration bond ETFs can reduce interest-rate sensitivity while preserving income.

ETF Spotlight with Matt Kaufman highlights that beating the S&P 500 isn’t about one magic fund—it’s about intentional asset allocation, disciplined rebalancing, and leveraging ETFs for cost-efficient diversification. Before making changes, review your investment goals, time horizon, and risk tolerance. Consider consulting a financial advisor to adapt these beyond-60/40 strategies to your personal plan.

Want to learn more? Tune into the episode of ETF Spotlight for deeper insight into these ETF strategies and practical steps to rethink your allocation and pursue better outcomes than the S&P 500 alone.

Back