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Folio Investing Celebrates Its Target Date Folios' Five-Year Record Of Outperformance

Some Specifics

Specifically, the Target Date Folios for the years 2010 through 2045 (i.e., the Folios for target retirement dates at five year intervals including and between those dates) provided higher returns and lower volatility from their inception date, December 21, 2007, through December 31, 2012 as compared to the three largest target-date funds, for the same target-date years. The average annual return for Target Date Folios is, on average, 1% per year more than the largest target-date funds, which would have an enormous impact on portfolio returns over an investor's lifetime.  For example, a range of analyses conclude that an increase in portfolio performance of 1% per year corresponds to a lifetime increase in wealth accumulation of 20%[1].  

Even over just the past five years, the realized increase in portfolio value is substantial. 

For example --

  • An investment of $100,000 in the 2025 Moderate Target Date Folio since its inception on December 21, 2007, would have been worth $116,900 at the end of December 2012, while the same investment in the three largest target-date fund families' 2025 target-date funds would be worth an average of only $110,800
  • An investment of $100,000 in the 2045 Moderate Target Date Folio since its inception on December 21, 2007, would have been worth $112,300 at the end of December 2012, while the same investment in the three largest target-date families' 2045 target-date funds of $100,000 would be worth an average of only $106,300




For a more detailed summary of Target Date Folios' performance, view our quarterly fact sheet on Target Date Folios, as well as our whitepaper, "Improving Target Date Offerings: Lessons Proven" on our Target Date Performance Page.  In addition, Folio Investing Cumulative Gain/Loss data for Target Date Folios is available on request.

About Folio Investing

Folio Investing, a division of FOLIO fn Investments, Inc., is an online brokerage that enables investors to manage stocks, ETFs, and mutual funds as integrated investment portfolios called "Folios"[2] that deliver control, transparency, and low cost. Investors can create their own Folios, much like creating personalized ETFs or mutual funds, or invest in over 100 Ready-to-Go Folios representing investing ideas, market indices, sectors, geographical regions, target dates, and more. The Folio Unlimited Plan features unlimited commission-free trading in twice-daily windows for only $29 a month or $290 a year. Ready-to-Go Folios can be managed or unmanaged, are not registered investment companies, and are offered by FOLIO fn Investments, Inc., a registered broker-dealer. FOLIO fn Investments, Inc. does not provide investment, tax, or legal advice. FOLIO fn Investments, Inc., is a member of FINRA/SIPC. 

[1] For a discussion of this calculation, please visit our blog, Portfolioist.com.

[2] Folios, which are special baskets of securities with specific features offered by Folio Investing, can be unmanaged, or managed by Folio Investing, by third parties or by the investor or an advisor, and are not registered investment companies.

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