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Target-Date 2040

A Target Date 2040 Fund is a target date fund that is... A Target Date 2040 Fund is a target date fund that is structured to meet a certain investment objective in 2040. How a Target Date 2040 Fund is managed will depend on what kind of target date fund it is. If it’s a “to” fund, the fund will reach its final asset allocation (say, 80% bonds and 20% equities) in 2040, and then stay there as long as it exists. If it’s a “Through” fund, however, the managers will keep actively adjusting the asset allocation past the target date. Another way of saying this is that the so-called Glide Path of the fund continues, as opposed to reaching a terminal state. Eventually, a Target Date 2040 Fund usually merges with an income fund that has a conservative (and steady) stock-bond mix. Target Date 2040 Funds may be appropriate for investors who seek a balanced portfolio of stocks and bonds. Someone looking to save for a more expensive goal decades into the future will be better off buying a Target Date Fund whose date lines up with their objective (i.e. later than 2040), as it will likely have a higher weighting to growth-focused equities. The ideal investor in one of these funds is someone who has a goal, such as retirement, that lines up with the target date. A downside to Target Date 2040 Funds is that there’s no guaranteed return, unlike, say, an annuity. The return for a particular Fund will come down to the decisions of the managers, as well as the performance of equity and fixed-income markets. In addition, fees on these funds can be high, as they are often considered “funds of funds”. So investors end up paying the fees of the fund itself, plus the fees of the various funds that are owned by the managers. Last Updated: 07/12/2024 View more View less

A Target Date 2040 Fund is a target date fund that is structured to meet a certain investment objective in 2040. How a Target Date 2040 Fund is managed will depend on what... A Target Date 2040 Fund is a target date fund that is structured to meet a certain investment objective in 2040. How a Target Date 2040 Fund is managed will depend on what kind of target date fund it is. If it’s a “to” fund, the fund will reach its final asset allocation (say, 80% bonds and 20% equities) in 2040, and then stay there as long as it exists. If it’s a “Through” fund, however, the managers will keep actively adjusting the asset allocation past the target date. Another way of saying this is that the so-called Glide Path of the fund continues, as opposed to reaching a terminal state. Eventually, a Target Date 2040 Fund usually merges with an income fund that has a conservative (and steady) stock-bond mix. Target Date 2040 Funds may be appropriate for investors who seek a balanced portfolio of stocks and bonds. Someone looking to save for a more expensive goal decades into the future will be better off buying a Target Date Fund whose date lines up with their objective (i.e. later than 2040), as it will likely have a higher weighting to growth-focused equities. The ideal investor in one of these funds is someone who has a goal, such as retirement, that lines up with the target date. A downside to Target Date 2040 Funds is that there’s no guaranteed return, unlike, say, an annuity. The return for a particular Fund will come down to the decisions of the managers, as well as the performance of equity and fixed-income markets. In addition, fees on these funds can be high, as they are often considered “funds of funds”. So investors end up paying the fees of the fund itself, plus the fees of the various funds that are owned by the managers. Last Updated: 07/12/2024 View more View less

Overview

Returns

Income

Allocations

Fees

About

Security Type
Management Style
Share Class Type
Share Class Account
As of 7/12/24
Vanguard Target Retirement 2040 Fund

VFORX | Fund | Investor

$43.58

+0.58%

$82.64 B

2.16%

$0.94

16.55%

3.74%

8.84%

7.93%

0.08%

$13.35

+0.53%

$1.53 B

2.23%

$0.30

16.61%

2.58%

6.71%

5.97%

0.56%

Schwab Target 2040 Fund

SWERX | Fund | Other

$18.59

+0.60%

$1.13 B

1.86%

$0.34

16.05%

3.74%

8.58%

7.65%

0.51%

Schwab Target 2040 Index Fund

SWYGX | Fund | Other

$17.56

+0.69%

$868.12 M

1.88%

$0.33

16.38%

4.54%

9.04%

-

0.12%

$13.63

+0.22%

$617.16 M

1.73%

$0.24

14.21%

3.00%

-

-

1.06%

$42.58

+0.12%

$237.53 M

0.00%

-

16.24%

3.64%

-

-

0.11%

$13.09

+0.15%

$60.28 M

0.26%

$0.03

17.37%

4.81%

10.58%

-

0.01%

$16.42

+0.05%

$38.04 M

0.00%

-

18.22%

5.01%

-

-

0.46%

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