Build Goldman Sachs Target Date Portfolios With ETFs

Build Goldman Sachs' Target Date portfolios with ETFs. How do they compare against other portfolios?
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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. They have low-risk portfolios and high-risk portfolios.

For the past 10 years, the Goldman Sachs Target Date 2045 portfolio has returned 8.82 with a standard deviation of 15.51. The dividend yield is 3.1. The 30-year return is 9.26%. Year to date the Goldman Sachs Target Date 2045 portfolio has returned 13.02%%.

What is the historical return of Goldman Sachs’ target date portfolios

Below you can see the historical return of Goldman Sachs’ target date portfolios

NameAsset class countYear to dateReturn in 202010 year returnCAGR since 1989 (%)Risk levelExpense ratio
Goldman Sachs Target Date 2055 Portfolio1313.05%2.648.879.2830.17%
Goldman Sachs Target Date 2045 Portfolio1313.02%2.578.829.2630.17%
Goldman Sachs Target Date 2035 Portfolio158.90%3.97.818.820.15%
Goldman Sachs Target Date 2025 Portfolio156.33%5.347.148.4620.13%
Goldman Sachs Target Date Retirement Income Portfolio94.64%6.16.668.1710.13%

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.

NameSee PortfolioYear to dateReturn in 202010 year returnCAGR since 1989 (%)Draw Down
Premium Portfolio15.92%18.2913.8410.77-37.63%
Premium Portfolio8.30%18.118.6311.14-44.87%
Premium Portfolio13.48%19.712.8410.49-32.77%
Premium Portfolio20.78%3.198.5210.59-36.46%
Premium Portfolio20.17%3.668.6210.48-36.35%
Premium Portfolio15.18%21.0313.7810.83-37.00%
Premium Portfolio19.24%8.711.5610.65-35.26%
Premium Portfolio15.41%7.488.3910.64-37.91%
Premium Portfolio16.16%5.3610.8811.23-35.43%
Premium Portfolio20.81%3.4210.2110.47-40.85%

What are the Goldman Sachs target date portfolios?

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 (S&P 500)
  • 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 (S&P 500)
  • 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 – LCV
  • 2.10% Large Cap Blend (S&P 500) – LCB
  • 3.10% Small Cap Value – SCV
  • 1.00% Real Estate – REIT
  • 1.00% International Developed
  • 11.80% International Value
  • 1.50% International Small
  • 17.00% Total Bond Market – TBM
  • 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

Here is how we select the right ETFs

There are a lot of ETFs! It is laborious work 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.

We have carefully selected an ETF 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. 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:

  1. Michael Cohen’s Money and Power: How Goldman Sachs Came to Rule the World
  2. Charles Ellis’ The Partnership: The Making of Goldman Sachs
  3. 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

Finding the correct portfolio is hard. Maintaining your portfolio is also daunting. If you are still in doubt about which portfolio to choose, we suggest you read our article How To Invest Money: 5 Simple Steps That Work For Anyone

If you have already committed to a portfolio – good for you! If you need help maintaining the portfolio 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.

Rebalancing lowers your portfolio risk and may increase your returns.


If you want access to our high-performing portfolios then you need to take a look at the premium portfolios. This is a paid product that gives you the 59 best-performing portfolios since 1989. The portfolios represent a great opportunity for you to have a shot at increasing the returns of your portfolio.

Portfolioeinstein Premium Portfolios

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.

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