Model Portfolios for All Risk Tolerances
If an employee isn’t sure which investments to select or prefers the simplicity of picking a managed investment portfolio, the ShareBuilder 401k offers model portfolios.
The six model portfolios below are available to all ShareBuilder 401k clients and they’re designed to range from stable to aggressive. The selected investments and allocation percentage of the model portfolios take into account various time horizons and risk tolerance levels that an investor chooses to accept.
ShareBuilder Advisors Investment Committee regularly reviews the model portfolios and will adjust the investments and asset allocations to better align with the model portfolios goals, economic climate, and other variables as needed. The Investment Committee leverages advanced financial models and modern portfolio theory to help in these decisions.
For performance data current to the most recent month's end click on the fund symbol. Access fund prospectus here.
Model Portfolios Offer Advantages Over Target Date Funds
Time and risk can be an advantage of model portfolios over target date funds. Target date funds consider just one risk-tolerance level by target year, and don’t consider how this can vary by investor, nor necessarily make clear what level of risk is assumed. Target date funds tend to include an added investment management fee to manage the portfolio—ShareBuilder 401k pricing is the same whether an employee selects specific funds from the roster or one of the model portfolios.
- * These are based on past performance, and are not forecasts of future results. Returns reflect the asset management expense of 0.75% and the model portfolio expense ratio. Your asset management expense may be less as ShareBuilder Advisors, LLC offers lower asset management expenses for plans with larger total account assets, typically beginning at $500,000. If your company uses an additional advisor or registered representative to support your plan, your asset management could be up to 0.50% higher but is capped at 1.25%.
- Total returns are historical and include change in share value and reinvestment of dividends and capital gains. Any holdings, asset allocation or other composition data shown are as of the date indicated, are subject to change at any time and may not be representative of the past model portfolio's investments. Your actual model portfolio will vary based on date of purchases, if you use auto-rebalancing and other variables.
- Past performance is not an indication of future results. The value of your investment will fluctuate over time and it is possible to lose part or all of the amount invested.
- A Note on Model Portfolio Performance and Considerations
Although ShareBuilder Advisors, LLC, carefully evaluates the make-up of the Model Portfolios on a regular basis, ShareBuilder 401k makes no representation regarding the likelihood or probability that any or all of the portfolios will in fact achieve a particular investment goal or fulfill the risk tolerance profile as described for each portfolio. ShareBuilder 401k is unable to predict or forecast market fluctuations or other uncertainties that may affect the value of any investment. As a self-directed investor, you must carefully consider the merit of a 401(k) plan and the appropriateness of the available investments under your employer's plan in light of your own personal financial circumstances, including your other assets, income and investments (e.g. equity in a home, IRA investments, savings accounts and interests in other qualified and non-qualified plans), cash flow needs, tax circumstances, or other complex or subjective concerns. You are urged to use all available resources to educate yourself about investing in general, these investment products in particular, and the composition of the Model Portfolios. As an alternative to the Model Portfolios, you can combine individual Exchange Traded Funds offered in the ShareBuilder 401k to create a customized portfolio with a risk and return profile similar to that of any of the Model Portfolios, although you should consider obtaining the assistance of a qualified investment advisor in doing so. Monitoring and adjusting your ShareBuilder 401k investing plan to suit changing circumstances is your responsibility, and it is recommended that you reassess any investing program on a regular basis to ensure that it remains consistent with your current financial resources and investment objectives. - You should carefully consider information contained in the fund's prospectus, including investment objectives, risks, charges and expenses. Please read the prospectus carefully before investing. Access fund prospectus here.