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Morningstar Portfolios: A Laser Beam On Your Returns

This article displays all of the Morningstar portfolios. They display a pure mastery of asset allocation and it shows in their high returns.

This article displays all of the Morningstar portfolios. They display a pure mastery of asset allocation and it shows in their high returns. There are a lot of portfolios! Here you will find asset allocation as well as performance for the many portfolios Morningstar has created.

The article covers the Lifetime Allocation Indexes (target-date funds) and it covers the Morningstar savings portfolios.

Morningstar Portfolios: A Laser Beam On Your Returns

Article Contents

What is Morningstar?

Morningstar is an investment research company offering mutual fund, ETF, and stock analysis, ratings, and data, and portfolio tools.

Morningstar offers a fantastic set of tools to examine a fund or ETF called the X-ray. It shows many metrics about a fund or ETF. For example, it shows which stocks are in the ETF. It also shows the value or growth tilt of a fund or ETF.

I use it almost every day!

I did a mini-tutorial on this tool. To see it in action read the article What Is The Best ETF And Mutual Fund?

What is special about Morningstar portfolios?

There are 2 sets of portfolios in this article:

  • The Lifetime Allocation Indexes (target-date funds)
  • The Morningstar savings portfolios.

The Lifetime Allocation Indexes (target-date funds)

The Morningstar®Lifetime Allocation Indexes are Morningstar’s target-date retirement portfolios. There are A LOT of them as Morningstar has an aggressive, moderate and conservative fund for each target-date. This means for example that for their 2030 target date they have 3 portfolios (aggressive, moderate and conservative). For their 2040 target-date fund, they have 3 portfolio allocation (aggressive, moderate and conservative).

No one other target-date fund provider offers this and it does seem overly complex and confusing. I think it negates much of the simplicity normally associated with target-date retirement funds. In addition, the portfolios have a lot of asset classes. In fact, they have the most number of asset classes of all the target-date portfolios on portfolioeinstein.com. The Goldman Sachs target date portfolios come close. The Morningstar Lifetime Allocation Indexes even have exposure to commodities.

However, with that said – they do very well as can be seen in our comparison of target-date funds here: What Is The Best Target Date Fund?

The Morningstar savings portfolios

These portfolios have been constructed by Christine Benz who is a  director of personal finance at Morningstar. She has put together the portfolios to help you save for retirement. In addition, she has also built portfolios for a 3-bucket approach when you already are in retirement. Those portfolios are not suited here but you can find them here. Christine Benz is the author of two wonderful books that come highly recommended. The first is Morningstar 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances and the second is Morningstar Guide to Mutual Funds: Five-Star Strategies for Success.

Morningstar's 30-Minute Money Solutions A Step-by-Step Guide to Managing Your Finances
Get it on Amazon

Performance of the Morningstar portfolios

Portfolio nameAsset class count1 year return (2019)Year to date10 year returnCAGR since 1989DrawdownRisk LevelExpense ratioYield
Morningstar Conservative Retirement Saver Portfolio718.17%1.39%7.58%8.29%-18.42%2 - low risk0.05%1.87%
Morningstar Moderate Retirement Saver Portfolio523.47%1.57%9.51%9.00%-29.81%4 - high risk0.05%2.14%
Morningstar Aggressive Retirement Saver Portfolio525.74%1.40%10.11%8.98%-36.46%5 - very high risk0.05%2.20%
Morningstar Lifetime Allocation Index Aggressive, 20601625.57%0.60%9.23%9.29%-39.62%5 - very high risk0.11%2.32%
Morningstar Lifetime Allocation Index Aggressive, 20501625.86%0.73%9.48%9.34%-39.37%5 - very high risk0.11%2.28%
Morningstar Lifetime Allocation Index Aggressive, 20401825.97%0.86%9.66%9.39%-38.72%5 - very high risk0.11%2.25%
Morningstar Lifetime Allocation Index Aggressive, 20301824.27%0.98%9.24%9.23%-33.93%4 - high risk0.11%2.18%
Morningstar Lifetime Allocation Index Aggressive, Income1817.40%0.97%6.97%8.10%-18.40%2 - low risk0.10%1.73%
Morningstar Lifetime Allocation Index Moderate, 20601624.97%0.64%9.10%9.26%-37.83%5 - very high risk0.11%2.30%
Morningstar Lifetime Allocation Index Moderate, 20501625.14%0.77%9.29%9.30%-37.36%5 - very high risk0.11%2.28%
Morningstar Lifetime Allocation Index Moderate, 20401824.40%0.89%9.19%9.24%-34.80%5 - very high risk0.11%2.23%
Morningstar Lifetime Allocation Index Moderate, 20301821.12%0.98%8.17%8.79%-26.61%3 - medium risk0.10%2.12%
Morningstar Lifetime Allocation Index Moderate, Income1815.07%0.87%6.04%7.61%-13.65%2 - low risk0.09%1.63%
Morningstar Lifetime Allocation Index Conservative, 20601623.76%0.78%8.88%9.19%-34.26%4 - high risk0.11%2.30%
Morningstar Lifetime Allocation Index Conservative, 20501623.46%0.89%8.88%9.16%-32.78%4 - high risk0.10%2.27%
Morningstar Lifetime Allocation Index Conservative, 20401821.08%0.99%8.16%8.82%-26.55%3 - medium risk0.10%2.21%
Morningstar Lifetime Allocation Index Conservative, 20301817.22%1.01%6.83%8.12%-17.47%2 - low risk0.10%2.06%
Morningstar Lifetime Allocation Index Conservative, Income1812.50%0.76%5.00%7.02%-8.44%1 - very low risk0.09%1.51%

Asset Allocation of the Morningstar portfolios

Morningstar Aggressive Retirement Saver Portfolio                       

  • 50.00%  US Total Stock Market   (VTI)
  • 10.00%  US Small Cap Value         (VIOV)
  • 30.00%  International Developed Blend      (VEA)
  • 5.00%    Emerging Markets           (VWO)
  • 5.00%    Total US Bond Market    (BND)

Morningstar Moderate Retirement Saver Portfolio                        

  • 47.00%  US Total Stock Market   (VTI)
  • 8.00%    US Small Cap Value         (VIOV)
  • 20.00%  International Developed Blend      (VEA)
  • 5.00%    Emerging Markets           (VWO)
  • 20.00%  Total US Bond Market    (BND)

Morningstar Conservative Retirement Saver Portfolio                  

  • 33.00%  US Total Stock Market   (VTI)
  • 5.00%    US Small Cap Value         (VIOV)
  • 10.00%  International Developed Blend      (VEA)
  • 4.00%    Emerging Markets           (VWO)
  • 30.00%  Total US Bond Market    (BND)
  • 7.00%    Short-Term Investment Grade   (VCSH)
  • 11.00%  TIPS       (VTIP)

Morningstar Lifetime Allocation Index Aggressive, 2030                               

  • 11.52%  US Large Cap Value         (VTV)
  • 10.00%  US Large Cap      (VV)
  • 8.79%    US Large Cap Growth     (VUG)
  • 4.94%    US Mid Cap Value            (JKI)
  • 4.29%    US Mid Cap         (IJH)
  • 3.77%    US Mid Cap Growth        (IJK)
  • 3.10%    US Small Cap Value         (VIOV)
  • 2.69%    US Small Cap      (VIOO)
  • 2.37%    US Small Cap Growth     (IJT)
  • 2.68%    REITs     (VNQ)
  • 21.27%  International Developed Blend      (VEA)
  • 7.24%    Emerging Markets           (VWO)
  • 10.03%  Total US Bond Market    (BND)
  • 0.45%    Cash (money market fund)          (BIL)
  • 2.45%    Commodities     (DBC / GSG)
  • 2.12%    TIPS       (VTIP)

Morningstar Lifetime Allocation Index Aggressive, 2040                               

  • 12.13%  US Large Cap Value         (VTV)
  • 10.54%  US Large Cap      (VV)
  • 9.26%    US Large Cap Growth     (VUG)
  • 5.20%    US Mid Cap Value            (JKI)
  • 4.52%    US Mid Cap         (IJH)
  • 3.97%    US Mid Cap Growth        (IJK)
  • 3.81%    US Small Cap Value         (VIOV)
  • 3.31%    US Small Cap      (VIOO)
  • 2.91%    US Small Cap Growth     (IJT)
  • 2.93%    REITs     (VNQ)
  • 25.26%  International Developed Blend      (VEA)
  • 9.54%    Emerging Markets           (VWO)
  • 3.00%    Total US Bond Market    (BND)
  • 0.05%    Cash (money market fund)          (BIL)
  • 2.62%    Commodities     (DBC / GSG)
  • 0.25%    TIPS       (VTIP)

Morningstar Lifetime Allocation Index Aggressive, 2050                               

  • 11.34%  US Large Cap Value         (VTV)
  • 9.85%    US Large Cap      (VV)
  • 8.66%    US Large Cap Growth     (VUG)
  • 4.86%    US Mid Cap Value            (JKI)
  • 4.22%    US Mid Cap         (IJH)
  • 3.71%    US Mid Cap Growth        (IJK)
  • 4.10%    US Small Cap Value         (VIOV)
  • 3.56%    US Small Cap      (VIOO)
  • 3.13%    US Small Cap Growth     (IJT)
  • 3.18%    REITs     (VNQ)
  • 26.55%  International Developed Blend      (VEA)
  • 11.06%  Emerging Markets           (VWO)
  • 2.40%    Total US Bond Market    (BND)
  • 2.78%    Commodities     (DBC / GSG)

Morningstar Lifetime Allocation Index Aggressive, 2060                               

  • 10.45%  US Large Cap Value         (VTV)
  • 9.08%    US Large Cap      (VV)
  • 7.98%    US Large Cap Growth     (VUG)
  • 4.48%    US Mid Cap Value            (JKI)
  • 3.89%    US Mid Cap         (IJH)
  • 3.42%    US Mid Cap Growth        (IJK)
  • 4.30%    US Small Cap Value         (VIOV)
  • 3.73%    US Small Cap      (VIOO)
  • 3.28%    US Small Cap Growth     (IJT)
  • 3.43%    REITs     (VNQ)
  • 27.45%  International Developed Blend      (VEA)
  • 12.56%  Emerging Markets           (VWO)
  • 2.35%    Total US Bond Market    (BND)
  • 2.95%    Commodities     (DBC / GSG)

Morningstar Lifetime Allocation Index Aggressive, Income                         

  • 7.45%    US Large Cap Value         (VTV)
  • 6.47%    US Large Cap      (VV)
  • 5.68%    US Large Cap Growth     (VUG)
  • 3.19%    US Mid Cap Value            (JKI)
  • 2.77%    US Mid Cap         (IJH)
  • 2.44%    US Mid Cap Growth        (IJK)
  • 1.18%    US Small Cap Value         (VIOV)
  • 1.03%    US Small Cap      (VIOO)
  • 0.90%    US Small Cap Growth     (IJT)
  • 2.00%    REITs     (VNQ)
  • 9.68%    International Developed Blend      (VEA)
  • 2.42%    Emerging Markets           (VWO)
  • 23.27%  Total US Bond Market    (BND)
  • 4.28%    Cash (money market fund)          (BIL)
  • 2.00%    Commodities     (DBC / GSG)
  • 19.96%  TIPS       (VTIP)

Morningstar Lifetime Allocation Index Conservative, 2030                          

  • 6.13%    US Large Cap Value         (VTV)
  • 5.32%    US Large Cap      (VV)
  • 4.68%    US Large Cap Growth     (VUG)
  • 2.63%    US Mid Cap Value            (JKI)
  • 2.28%    US Mid Cap         (IJH)
  • 2.00%    US Mid Cap Growth        (IJK)
  • 1.65%    US Small Cap Value         (VIOV)
  • 1.43%    US Small Cap      (VIOO)
  • 1.26%    US Small Cap Growth     (IJT)
  • 2.18%    REITs     (VNQ)
  • 10.87%  International Developed Blend      (VEA)
  • 3.70%    Emerging Markets           (VWO)
  • 36.52%  Total US Bond Market    (BND)
  • 1.64%    Cash (money market fund)          (BIL)
  • 2.00%    Commodities     (DBC / GSG)
  • 7.71%    TIPS       (VTIP)

Morningstar Lifetime Allocation Index Conservative, 2040                          

  • 8.66%    US Large Cap Value         (VTV)
  • 7.52%    US Large Cap      (VV)
  • 6.61%    US Large Cap Growth     (VUG)
  • 3.71%    US Mid Cap Value            (JKI)
  • 3.22%    US Mid Cap         (IJH)
  • 2.83%    US Mid Cap Growth        (IJK)
  • 2.72%    US Small Cap Value         (VIOV)
  • 2.36%    US Small Cap      (VIOO)
  • 2.07%    US Small Cap Growth     (IJT)
  • 2.43%    REITs     (VNQ)
  • 17.11%  International Developed Blend      (VEA)
  • 6.46%    Emerging Markets           (VWO)
  • 24.39%  Total US Bond Market    (BND)
  • 0.41%    Cash (money market fund)          (BIL)
  • 2.00%    Commodities     (DBC / GSG)
  • 2.00%    TIPS       (VTIP)

Morningstar Lifetime Allocation Index Conservative, 2050                          

  • 9.89%    US Large Cap Value         (VTV)
  • 8.59%    US Large Cap      (VV)
  • 7.55%    US Large Cap Growth     (VUG)
  • 4.24%    US Mid Cap Value            (JKI)
  • 3.68%    US Mid Cap         (IJH)
  • 3.24%    US Mid Cap Growth        (IJK)
  • 3.57%    US Small Cap Value         (VIOV)
  • 3.10%    US Small Cap      (VIOO)
  • 2.73%    US Small Cap Growth     (IJT)
  • 2.68%    REITs     (VNQ)
  • 21.71%  International Developed Blend      (VEA)
  • 9.04%    Emerging Markets           (VWO)
  • 14.53%  Total US Bond Market    (BND)
  • 0.00%    Cash (money market fund)          (BIL)
  • 2.00%    Commodities     (DBC / GSG)

Morningstar Lifetime Allocation Index Conservative, 2060                          

  • 9.54%    US Large Cap Value         (VTV)
  • 8.28%    US Large Cap      (VV)
  • 7.28%    US Large Cap Growth     (VUG)
  • 4.09%    US Mid Cap Value            (JKI)
  • 3.55%    US Mid Cap         (IJH)
  • 3.12%    US Mid Cap Growth        (IJK)
  • 3.92%    US Small Cap Value         (VIOV)
  • 3.41%    US Small Cap      (VIOO)
  • 2.99%    US Small Cap Growth     (IJT)
  • 2.93%    REITs     (VNQ)
  • 23.17%  International Developed Blend      (VEA)
  • 10.61%  Emerging Markets           (VWO)
  • 11.89%  Total US Bond Market    (BND)
  • 2.00%    Commodities     (DBC / GSG)

Morningstar Lifetime Allocation Index Conservative, Income                    

  • 3.29%    US Large Cap Value         (VTV)
  • 2.86%    US Large Cap      (VV)
  • 2.51%    US Large Cap Growth     (VUG)
  • 1.41%    US Mid Cap Value            (JKI)
  • 1.23%    US Mid Cap         (IJH)
  • 1.08%    US Mid Cap Growth        (IJK)
  • 0.52%    US Small Cap Value         (VIOV)
  • 0.45%    US Small Cap      (VIOO)
  • 0.40%    US Small Cap Growth     (IJT)
  • 1.50%    REITs     (VNQ)
  • 4.28%    International Developed Blend      (VEA)
  • 1.07%    Emerging Markets           (VWO)
  • 34.50%  Total US Bond Market    (BND)
  • 6.35%    Cash (money market fund)          (BIL)
  • 2.00%    Commodities     (DBC / GSG)
  • 29.58%  TIPS       (VTIP)

Morningstar Lifetime Allocation Index Moderate, 2030                 

  • 9.10%    US Large Cap Value         (VTV)
  • 7.90%    US Large Cap      (VV)
  • 6.94%    US Large Cap Growth     (VUG)
  • 3.90%    US Mid Cap Value            (JKI)
  • 3.39%    US Mid Cap         (IJH)
  • 2.97%    US Mid Cap Growth        (IJK)
  • 2.45%    US Small Cap Value         (VIOV)
  • 2.13%    US Small Cap      (VIOO)
  • 1.87%    US Small Cap Growth     (IJT)
  • 2.68%    REITs     (VNQ)
  • 16.47%  International Developed Blend      (VEA)
  • 5.61%    Emerging Markets           (VWO)
  • 22.03%  Total US Bond Market    (BND)
  • 0.98%    Cash (money market fund)          (BIL)
  • 2.45%    Commodities     (DBC / GSG)
  • 4.65%    TIPS       (VTIP)

Morningstar Lifetime Allocation Index Moderate, 2040                 

  • 11.03%  US Large Cap Value         (VTV)
  • 9.58%    US Large Cap      (VV)
  • 8.42%    US Large Cap Growth     (VUG)
  • 4.73%    US Mid Cap Value            (JKI)
  • 4.10%    US Mid Cap         (IJH)
  • 3.61%    US Mid Cap Growth        (IJK)
  • 3.46%    US Small Cap Value         (VIOV)
  • 3.01%    US Small Cap      (VIOO)
  • 2.64%    US Small Cap Growth     (IJT)
  • 2.93%    REITs     (VNQ)
  • 22.38%  International Developed Blend      (VEA)
  • 8.45%    Emerging Markets           (VWO)
  • 10.00%  Total US Bond Market    (BND)
  • 0.16%    Cash (money market fund)          (BIL)
  • 2.62%    Commodities     (DBC / GSG)
  • 0.82%    TIPS       (VTIP)

Morningstar Lifetime Allocation Index Moderate, 2050                 

  • 10.92%  US Large Cap Value         (VTV)
  • 9.49%    US Large Cap      (VV)
  • 8.34%    US Large Cap Growth     (VUG)
  • 4.68%    US Mid Cap Value            (JKI)
  • 4.07%    US Mid Cap         (IJH)
  • 3.57%    US Mid Cap Growth        (IJK)
  • 3.95%    US Small Cap Value         (VIOV)
  • 3.43%    US Small Cap      (VIOO)
  • 3.01%    US Small Cap Growth     (IJT)
  • 3.18%    REITs     (VNQ)
  • 24.76%  International Developed Blend      (VEA)
  • 10.31%  Emerging Markets           (VWO)
  • 6.18%    Total US Bond Market    (BND)
  • 0.00%    Cash (money market fund)          (BIL)
  • 2.78%    Commodities     (DBC / GSG)

Morningstar Lifetime Allocation Index Moderate, 2060                 

  • 10.16%  US Large Cap Value         (VTV)
  • 8.83%    US Large Cap      (VV)
  • 7.76%    US Large Cap Growth     (VUG)
  • 4.36%    US Mid Cap Value            (JKI)
  • 3.78%    US Mid Cap         (IJH)
  • 3.32%    US Mid Cap Growth        (IJK)
  • 4.18%    US Small Cap Value         (VIOV)
  • 3.63%    US Small Cap      (VIOO)
  • 3.19%    US Small Cap Growth     (IJT)
  • 3.43%    REITs     (VNQ)
  • 25.67%  International Developed Blend      (VEA)
  • 11.75%  Emerging Markets           (VWO)
  • 5.62%    Total US Bond Market    (BND)
  • 0.00%    Cash (money market fund)          (BIL)
  • 2.95%    Commodities     (DBC / GSG)

Morningstar Lifetime Allocation Index Moderate, Income                           

  • 5.44%    US Large Cap Value         (VTV)
  • 4.72%    US Large Cap      (VV)
  • 4.15%    US Large Cap Growth     (VUG)
  • 2.33%    US Mid Cap Value            (JKI)
  • 2.02%    US Mid Cap         (IJH)
  • 1.78%    US Mid Cap Growth        (IJK)
  • 0.86%    US Small Cap Value         (VIOV)
  • 0.75%    US Small Cap      (VIOO)
  • 0.66%    US Small Cap Growth     (IJT)
  • 2.00%    REITs     (VNQ)
  • 7.07%    International Developed Blend      (VEA)
  • 1.77%    Emerging Markets           (VWO)
  • 28.74%  Total US Bond Market    (BND)
  • 5.28%    Cash (money market fund)          (BIL)
  • 2.00%    Commodities     (DBC / GSG)
  • 24.63%  TIPS       (VTIP)

Find the best ETFs and mutual funds in our updated article What Is The Best ETF And Mutual Fund?

Morningstar resources

The Morningstar website

The https://www.morningstar.com/articles/archive/467/us-videos.htmlMorninstar video archive – great for keeping up with investment news!

Morningstar also has a youtube channel.

https://www.youtube.com/watch?v=mYilk7ZFxlk

Morningstar has a podcast, and you can find it on all podcast outlets

Now it’s your turn!

Which portfolio do you use?

After having read up on the Morningstar portfolios what do you think are good about them?

I encourage you to find other great portfolios right here on portfolioeinstein.com.

If you have suggestions for new portfolios be sure to add them in comments or reach out to me.

I would love to hear from you!

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