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What are Goldman Sachs Target Date Portfolios?
Goldman Sachs Target Date Portfolios can be built with 10-13 ETFs. They are exposed to between 10% – 50% bonds and 50% – 90% equities.
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What is the historical return of Goldman Sachs’ target date portfolios
Below you can see the historical return of Goldman Sachs’ target date portfolios
Portfolio data was last updated on 11th of August 2023, 08:35 ET
| Name | Year to date | Return in 2022 | 10 year return | CAGR since 1989 (%) | Draw Down | Expense ratio | Yield |
|---|---|---|---|---|---|---|---|
| Goldman Sachs Target Date 2055 Portfolio | 4.9 | -7.89 | 8.73 | 9.02 | -37.33 | 0.17% | 3.18 |
| Goldman Sachs Target Date 2045 Portfolio | 4.84 | -7.82 | 8.69 | 9.0 | -37.21 | 0.17% | 3.18 |
| Goldman Sachs Target Date 2035 Portfolio | 2.75 | -9.3 | 6.69 | 8.36 | -27.51 | 0.15% | 3.49 |
| Goldman Sachs Target Date 2025 Portfolio | 2.14 | -11.03 | 5.42 | 7.87 | -20.51 | 0.13% | 3.41 |
| Goldman Sachs Target Date Retirement Income Portfolio | 1.63 | -12.04 | 4.55 | 7.5 | -16.5 | 0.13% | 3.42 |
Here is what the table is showing you
Year to date: This shows what the portfolio has returned this year starting from the first trading day of the year.
10 Year return: This shows the compounded annualized growth rate over a ten-year period. The current year is excluded from calculations.
CAGR since 1989: This shows the compounded annualized growth rate since 1989. The current year is excluded from calculations.
Expense ratio: This shows the cost of holding the portfolio if you were to construct the portfolio using the proposed ETFs.
Yield: This is the expected dividend yield of the portfolio.
Please note that past performance is not a guarantee of future returns.
How does Goldman Sachs’ target date portfolios compare to the best portfolios?
Below you can see the returns of the best portfolios that we have benchmarked.
| Name | See Portfolio | Year to date | Return in 2022 | 10 year return | CAGR since 1989 (%) | Draw Down |
|---|---|---|---|---|---|---|
| Ben Stein Retirement | Coming soon! | 4.05 | -18.03 | 9.46 | 10.8 | -35.42 |
| Paul Merriman 4-Fund-Portfolio | Coming soon! | 9.22 | -11.98 | 11.25 | 10.38 | -35.26 |
| S&P 500 | Coming soon! | 17.09 | -18.19 | 12.52 | 10.28 | -37.63 |
| Paul Merriman Target Date Portfolio (25 year old) | Coming soon! | 6.63 | -13.08 | 8.28 | 10.2 | -36.46 |
| Scott Adams Dilbert Portfolio | Coming soon! | 10.87 | -18.75 | 7.0 | 10.19 | -44.88 |
| JL Collins, Simple Path To Wealth, Wealth Building Portfolio | Coming soon! | 16.6 | -19.51 | 12.08 | 10.19 | -37.0 |
| American Institute of Individual Investors (AAII) Portfolio | Coming soon! | 3.74 | -13.91 | 9.7 | 10.16 | -40.85 |
| Paul Merriman Target Date Portfolio (35 year old) | Coming soon! | 6.57 | -13.22 | 8.31 | 10.08 | -36.35 |
| Assetbuilder.com Portfolio 14 | Coming soon! | 6.95 | -16.94 | 7.59 | 9.99 | -37.91 |
| Balanced Portfolio 90/10 | Coming soon! | 14.83 | -18.87 | 11.03 | 9.84 | -32.78 |
Goldman Sachs target-date portfolios are made of other funds. They are funds of funds.
This is the standard and smart way of constructing a target-date fund. Many, if not most other target-date funds are built this way, fx, Dimensional Fund Advisors, Vanguard, BlackRock, and Fidelity.
Most of the underlying funds in Goldman Sachs target-date portfolios are Goldman Sachs smart-beta funds. Smart-beta funds target specific risk premia fx, size, quality, momentum. The Goldman Sachs smart-beta funds are very cheap.
The underlying funds also include futures contracts on fx. S&P 500 and small caps indices. There are also token presences of standard index ETFs from Vanguard and iShares. We benchmark the Goldman funds against their strategic benchmark presented in their attribution reports.
When we benchmark we use traditional index funds as per Data Sources and Performance Tracking Information. We benchmark smart-beta funds against comparable value asset classes.
Disclaimer: These are target-date funds. By design, their asset allocation will change over time. In general, target-date funds shift more of their assets towards bonds as you age to lower your risk. This means that the asset allocation below will have changed until we update it here at portfolioeinstein.com. The information on these funds was collected in 2018.
What is the asset allocation for Goldman Sachs target date portfolios?
Below you can see how you build Goldman Sachs target date portfolios with ETFs.
Note: Please check the fund prospectus for the exact asset allocation and funds to use.
Goldman Sachs Target Date 2055 Portfolio
- 42.80% Large Cap Value
- 6.20% Large Cap Blend
- 3.90% Small Cap Value
- 2.10% Small Cap Blend
- 1.00% Real Estate
- 1.00% International Developed
- 23.80% International Value
- 3.00% International Small
- 0.30% T-bills/Treasury Money Market
- 1.80% High Yield Corporate Bonds
- 7.90% Emerging Markets Value
- 2.50% EM Bonds
- 3.70% Long-Term Investment-Grade Bonds
Goldman Sachs Target Date 2045
- 42.80% Large Cap Value
- 5.80% Large Cap Blend
- 4.10% Small Cap Value
- 2.00% Small Cap Blend
- 1.00% Real Estate
- 1.00% International Developed
- 23.80% International Value
- 3.00% International Small
- 0.60% T-bills/Treasury Money Market
- 1.80% High Yield Corporate Bonds
- 7.90% Emerging Markets Value
- 2.50% EM Bonds
- 3.70% Long-Term Investment-Grade Bonds
Goldman Sachs Target Date 2035 Portfolio
- 34.60% Large Cap Value
- 2.10% Small Cap Value
- 2.0% Small Cap Blend
- 1.00% Real Estate
- 1.00% International Developed
- 16.80% International Value
- 2.00% International Small
- 4.60% Total Bond Market
- 0.20% T-bills/Treasury Money Market
- 14.50% Inter. Term Corporate Bond
- 1.10% High Yield Corporate Bonds
- 5.70% Treasury Inflation-Protected – TIPS
- 5.20% Emerging Markets Value
- 4.00% EM Bonds
- 5.00% Long-Term Investment-Grade Bonds
Goldman Sachs target date 2025 portfolio
- 23.90% Large Cap Value
- 2.10% Large Cap Blend
- 3.10% Small Cap Value –
- 1.00% Real Estate
- 1.00% International Developed
- 11.80% International Value
- 1.50% International Small
- 17.00% Total Bond Market
- 0.40% T-bills/Treasury Money Market
- 19.10% Inter. Term Corporate Bond
- 1.1% High Yield Corporate Bonds
- 5.70% Treasury Inflation-Protected – TIPS
- 4.20% Emerging Markets Value
- 4.50% EM Bonds
- 4.70% Long-Term Investment-Grade Bonds
Make sure you select the right ETFs!
There are a lot of ETFs! It is pretty boring to sift through hundreds and hundreds of ETFs just to find the right one, but it is worth it!
Finding the right and BEST ETF could earn you a lot more money than number two on the list.
We have done the work for you – all for FREE.
We have carefully selected ETFs for each asset class that the portfolios on portfolioeinstein.com use. If you want to read more about our selection process and see what we consider the best ETFs please visit our article What Is The Best ETF?
If you are a European investor you need to buy European ETFs (they need to be of the UCITS kind!).
We have listed 47 of the best ETFs in our article What Are The Best ETFs For European Investors? (Here Is 47).
As of 2021 we also track socially responsible investing ESG portfolios. Socially responsible investing (ESG) portfolios prioritize investing that puts an emphasis on environmental, social, and corporate governance issues.
You can find the socially responsible investing ESG ETFs in the same article.
Resources for Goldman Sachs target date portfolios
Goldman Sachs has a podcast called Exchanges at Goldman Sachs.
See a reading list for new GS employees here. If you’re interested in the history of Goldman Sachs, there are a few good books out there:
- Michael Cohen’s Money and Power: How Goldman Sachs Came to Rule the World
- Charles Ellis’The Partnership: The Making of Goldman Sachs
- And if you’re interested in behind the scenes of GS under the financial crisis, you’re not going to get disappointed with The Big Short: Inside the Doomsday Machine.
See a performance comparison of target-date funds in our article,Target Date Fund Portfolios. If you are new to target-date funds, read our primer and benchmarks in our article What Is The Best Target Date Fund?
Suggestions for your next steps
If you have already committed to a portfolio then maybe you need help maintaining the portfolio. In this case you will find our rebalance worksheet useful.
Rebalancing your portfolio lowers your risk and may provide higher returns in the long run. It is completely FREE.
You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.
Related questions
Are target-date mutual funds a good investment?
Yes, they are an excellent investment if you want a hands-off approach to investing. Target date funds may be too conservative for many people because they invest in bonds early on. The investment return of bonds is lower than stocks, so holding bonds for the Long-Term will not yield as high a return as stocks.
What should my target date fund be?
All target-date funds have a year associated with them. The appropriate target-date fund for you is the fund where the year of the fund corresponds to the approximate year you are planning to retire. The target date fund will gradually decrease risk as you near retirement. This is called the glide path of the fund. So if you are 30 years old and planning on retirement in 35 years, then you should be looking at a target-date fund with 2050-2060 in its name.
