Build Bogleheads Three Fund Portfolio With ETFs
What is the Three Fund Portfolio? The three-fund portfolio is a lazy portfolio that consists of …
What are the Morningstar portfolios?
The Morningstar Portfolios can be built with up to 16 ETFs. They are exposed to between 0% and 100% equities.
Article contents
Article Contents
How do you build the Morningstar portfolios with ETFs?
Here is how you build Morningstar Aggressive Retirement Saver Portfolio with ETFs.
You can find many more Morningstar portfolios below.
- 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)
What is the historical return of Morningstar’s portfolios?
Below you can see the investment return for Morningstar’s many portfolios.
Portfolio data was last updated on 11th of November 2022, 11:40 ET
| Name | Year to date | Return in 2021 | 10 year return | CAGR since 1989 (%) | STDEV | Draw Down | Expense ratio | Yield |
|---|---|---|---|---|---|---|---|---|
| Morningstar Conservative Retirement Saver Portfolio | -17.04 | 11.21 | 8.54 | 8.49 | 9.28 | -18.42% | 0.05% | 1.74 |
| Morningstar Moderate Retirement Saver Portfolio | -19.69 | 16.54 | 11.42 | 9.38 | 13.44 | -29.81% | 0.05% | 1.95 |
| Morningstar Aggressive Retirement Saver Portfolio | -20.37 | 19.37 | 12.55 | 9.45 | 15.77 | -36.46% | 0.05% | 2.0 |
| Morningstar Lifetime Allocation Index Aggressive, 2060 | -19.22 | 19.42 | 11.36 | 9.66 | 16.42 | -39.62% | 0.11% | 2.28 |
| Morningstar Lifetime Allocation Index Aggressive, 2050 | -19.01 | 19.87 | 11.62 | 9.73 | 16.29 | -39.37% | 0.10% | 2.25 |
| Morningstar Lifetime Allocation Index Aggressive, 2040 | -18.76 | 20.12 | 11.79 | 9.78 | 16.02 | -38.72% | 0.10% | 2.21 |
| Morningstar Lifetime Allocation Index Aggressive, 2030 | -18.12 | 18.28 | 11.02 | 9.56 | 14.24 | -33.93% | 0.10% | 2.14 |
| Morningstar Lifetime Allocation Index Aggressive, Income | -14.73 | 11.61 | 7.57 | 8.23 | 8.61 | -18.40% | 0.09% | 1.7 |
| Morningstar Lifetime Allocation Index Moderate, 2060 | -19.05 | 18.76 | 11.09 | 9.61 | 15.75 | -37.83% | 0.10% | 2.27 |
| Morningstar Lifetime Allocation Index Moderate, 2050 | -18.85 | 19.05 | 11.28 | 9.65 | 15.55 | -37.36% | 0.10% | 2.24 |
| Morningstar Lifetime Allocation Index Moderate, 2040 | -18.46 | 18.3 | 11.01 | 9.57 | 14.59 | -34.80% | 0.10% | 2.19 |
| Morningstar Lifetime Allocation Index Moderate, 2030 | -17.44 | 14.68 | 9.39 | 9.01 | 11.61 | -26.61% | 0.10% | 2.09 |
| Morningstar Lifetime Allocation Index Moderate, Income | -13.91 | 9.2 | 6.28 | 7.66 | 7.13 | -13.65% | 0.09% | 1.61 |
| Morningstar Lifetime Allocation Index Conservative, 2060 | -19.16 | 16.89 | 10.61 | 9.49 | 14.58 | -34.26% | 0.10% | 2.27 |
| Morningstar Lifetime Allocation Index Conservative, 2050 | -18.88 | 16.65 | 10.53 | 9.45 | 14.01 | -32.78% | 0.10% | 2.24 |
| Morningstar Lifetime Allocation Index Conservative, 2040 | -18.13 | 14.02 | 9.37 | 9.03 | 11.73 | -26.55% | 0.09% | 2.18 |
| Morningstar Lifetime Allocation Index Conservative, 2030 | -16.79 | 9.9 | 7.36 | 8.21 | 8.57 | -17.47% | 0.09% | 2.04 |
| Morningstar Lifetime Allocation Index Conservative, Income | -13.01 | 6.41 | 4.85 | 7.0 | 5.83 | -8.44% | 0.08% | 1.5 |
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 Morningstar’s 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 2021 | 10 year return | CAGR since 1989 (%) | Draw Down |
|---|---|---|---|---|---|---|
| Premium Portfolio |  | -20.97 | 32.14 | 13.2 | 11.81 | -35.43% |
| Premium Portfolio | | -18.7 | 28.78 | 16.52 | 11.28 | -37.63% |
| Premium Portfolio | | -19.64 | 25.67 | 16.29 | 11.25 | -37.00% |
| Premium Portfolio | | -23.99 | 13.49 | 11.03 | 11.21 | -44.87% |
| Premium Portfolio | | -12.0 | 28.17 | 14.47 | 11.14 | -35.26% |
| Premium Portfolio | | -14.9 | 24.75 | 11.85 | 10.99 | -36.46% |
| Premium Portfolio | | -14.79 | 29.02 | 13.15 | 10.99 | -40.85% |
| Premium Portfolio | | -20.6 | 20.7 | 11.45 | 10.93 | -37.91% |
| Premium Portfolio | | -15.12 | 24.51 | 11.87 | 10.88 | -36.35% |
| Premium Portfolio | | -19.38 | 22.92 | 14.99 | 10.85 | -32.77% |
What is Morningstar?
Morningstar is a giant within portfolios and portfolios analysis. 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.
_Morningstar_is an investment research company. The offer analysis of mutual funds, ETF, and stocks. They also provide rating data and portfolio tools. In recent years they have begun to rate companies on a socially responsible investing scale. You can read more on that in our article Socially Responsible Investing (ESG) Portfolios On Portfolio Einstein.
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 an 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 please see the article What Is The Best ETF And Mutual Fund?
Here is Christine Benz from Morninstar talking about getting your finances in order
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 that for their 2030 target date they have 3 portfolios (aggressive, moderate, and conservative). For their 2040 target-date fund, they have 3 portfolio allocations (aggressive, moderate, and conservative).
No 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 comes 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 Robo advisor Ellevest has teamed up with Morningstar and their portfolios share a resemblance to the Morningstar portfolios. See our post on Ellevest in our article Robo Advisor Ellevest, Are These Women Only High Complex Portfolios Worth It?
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.
Recommended books
Christine Benz is the author of two wonderful books that come highly recommended.
The first book is Morningstar 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances.
Morningstar 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances
The second book is Morningstar Guide to Mutual Funds: Five-Star Strategies for Success.
Morningstar Guide to Mutual Funds: Five-Star Strategies for Success
What is the asset allocation of the Morningstar portfolios?
Please note: The ETFs in parenthesis are our own suggested funds to use to proxy as the asset class. They are not recommendations by Morningstar!
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% REITsVNQ)
- 21.71% International Developed Blend (VEA)
- 9.04% Emerging Markets (VWO)
- 14.53% Total US Bond Market(BND)
- 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)
- 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)
- 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)
Where can I learn more about Morningstar?
Go here to The Morningstar website
The Morninstar video archive is Morninstar video archive – great for keeping up with investment news!
Morningstar also has a youtube channel.
Morningstar has several podcasts, and you can find them on all podcast outlets
Suggestions for your next steps
Finding the right portfolio is hard. Maintaining your portfolio is also daunting.
If you want access to our high-performing portfolios then you want to take a look at the premium portfolios.
This is a paid product that gives you the 20 best-performing portfolios since 1989. The portfolios represent a great opportunity low-cost for you to get more money from your investment portfolios. We think it’s a no-brainer. The 20 portfolios are the best among the literally hundreds of other portfolios we have benchmarked since we started.
You stand to gain thousands more dollars EACH YEAR for the price of a few months of Netflix.
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 can increase your returns.
Related questions
Does Morningstar offer managed portfolios?
Morningstar only offers managed portfolios to investment advisors. Morningstar offers ETFs based upon their own indices. Do they offer investment newletters however.
What is the Morningstar Instant X-Ray?
The Morningstar Instant X-Ray is a powerful fund and ETF tool to see details of a fund or ETFs. With the tool, you can easily see asset allocation, expense ratio, p/e value, and many more metrics.
