Objective

The objectives of the MarketGlide 2040 folio are:

  1. To provide an investment approach designed for retirement in 2040.
  2. To provide an appropriate asset allocation and glide path based on the collective wisdom of the 2040 target date market.
  3. To provide a return that is higher than the 2040 target date market average by tracking that average return, but doing so with reduced management risk and expense.

Strategy

The MarketGlide 2040 folio implements and maintains an asset allocation that is an average of the largest 2040 target date funds. All of these fund families have greater than $100 million in assets under management and at least 24 months of return history.

For more information please visit www.marketglide.com.

More MarketGlide Folios

Last Updated: September 27, 2016

Category: Strategy
Inception Date: August 12, 2009
Date Funded: July 01, 2013*

Folio S&P 500 Total Return
One-Month 0.38% -0.26%
Three-Month 8.84% 8.55%
Year-to-Date 7.54% 7.38%
One-Year 10.85% 14.28%
Three-Year (Annualized) 6.45% 10.77%
Five-Year (Annualized) 10.55% 15.38%
Since Inception 9.93% N/A
Volatility 12.75% 14.51%

Past performance is no guarantee of future results.
See how returns are calculated

* Returns reflect model performance from the Inception Date to the Date Funded, and funded performance since the Date Funded, if funded. Your returns may deviate significantly from the values displayed here, due to many factors, including how long after a strategy has been updated that you place orders to update your holdings.

#SymbolCompanyWeight
(% of Folio)
1BNDvanguard total bond market index fund8.80%
2BWXspdr barclays capital international trea1.60%
3DBCpowershares db commodity index tracking2.00%
4EMBishares jpmorgan usd emerging markets bo0.70%
5HYGishares iboxx $ high yield corporate bon2.30%
6IEFAishares tr core msci eafe13.70%
7IWDishares russell 1000 value index fund15.60%
8IWFishares russell 1000 growth index fund28.50%
9IWNishares russell 2000 value index fund6.60%
10IWOishares russell 2000 growth index fund4.80%
11MINTpimco enhanced short maturity strategy f3.10%
12TIPishares barclays tips bond fund1.70%
13VNQvanguard reit etf3.20%
14VSSvanguard ftse all-world ex-us small-cap3.40%
15VWOvanguard emerging markets index fund4.00%

Steps to Create This Folio

  1. Asset class glide paths are derived for each of the 25 largest public target date fund families from published monthly returns.
  2. These glide paths are averaged into an industry average glide path.
  3. The 2040 asset class portfolio is selected from the industry average glide path.
  4. ETFs are used to implement each asset class. Low-cost ETFs are selected based on their ability to effectively track asset class indexes.

Number of Securities

There are generally between 10 and 15 securities in the folio.

Update Frequency

MarketGlide™ 2040 folio allocations are generally updated quarterly.

The following are reevaluated annually:

  • Which target date fund families should be considered during MarketGlide 2040 folio creation.
  • Whether the asset class palette appropriately represents the average target date strategy.

Corporate actions, such as a merger, or other events may prompt changes to the securities at any time.

Please Note

If you do not rebalance quarterly to realign your holdings to the updated MarketGlide 2040 folio allocations, you will not receive the design benefit of having your risk decrease as you approach 2040.

If the characteristics of the folio have changed substantially, the securities included may change. Also, corporate actions, such as a merger, or other events may cause changes to the securities held at any time. Your returns may deviate significantly from the values displayed here, due to many factors, including how long after a folio has been updated that you place orders to update your holdings.