Morningstar 401K ETF Clone-US-Optimized Investment Model Portfolios

This is the first modification of the clone of the Morningstar 401K plan which is a model of effective investment plans.

This is the one where we have optimized US equity ETFs

Portfolio comparison is here:

http://www.myplaniq.com/LTISystem/jsp/portfolio/ComparePortfolio.action?portfolioString=Six%20Core%20Asset%20ETFs%20Tactical%20Asset%20Allocation%20Moderate,Morningstar%20Inc%20401K%20Plan%20Tactical%20Asset%20Allocation%20Moderate,Morningstar%20401K%20ETF%20Clone-US-Optimized%20Tactical%20Asset%20Allocation%20Moderate,Morningstar%20401K%20ETF%20Clone%20Tactical%20Asset%20Allocation%20Moderate

Investment options of Morningstar 401K ETF Clone-US-Optimized

Total Available Funds: 26

Asset Class

Ticker

Description

COMMODITIES
COMMODITIES BROAD BASKET	DBC	PowerShares DB Commodity Index Tracking

Emerging Market
DIVERSIFIED EMERGING MKTS	EWX	SPDR S&P Emerging Markets Small Cap
DIVERSIFIED EMERGING MKTS	VWO	Vanguard Emerging Markets Stock ETF

INTERNATIONAL EQUITY
Foreign Large Blend	VEA	Vanguard Europe Pacific ETF
Foreign Large Value	EFV	iShares MSCI EAFE Value Index

FIXED INCOME
High Yield Bond	JNK	SPDR Barclays Capital High Yield Bond
Inflation-Protected Bond	TIP	iShares Barclays TIPS Bond
Intermediate-Term Bond	AGG	iShares Barclays Aggregate Bond
Multisector Bond	GVI	iShares Barclays Interm Govt/Credit Bond
SHORT GOVERNMENT	SHY	iShares Barclays 1-3 Year Treasury Bond
Short-Term Bond	BSV	Vanguard Short-Term Bond ETF

Others
Moderate Allocation	AOM	iShares S&P Moderate Allocation
ROOT	CASH	CASH
Financial	XLF	Financial Select Sector SPDR

REAL ESTATE
REAL ESTATE	VNQ	Vanguard REIT Index ETF

US EQUITY
SMALL BLEND	VB	Vanguard Small Cap ETF
SMALL VALUE	VBR	Vanguard Small Cap Value ETF
Mid-Cap Growth	IJK
Small Growth	VBK
LARGE GROWTH	QQQ	QQQ
MID-CAP BLEND	MDY
Small Growth	IWO
MID-CAP BLEND	IJH
MID-CAP VALUE	IJJ
LARGE BLEND	RSP
LARGE VALUE	VTV

Investment model portfolios

We provide two types of investment model portfolios for Morningstar 401K ETF Clone-US-Optimized participants. You can customize and follow a model portfolio in your plan account.

Types of portfolio strategies

Strategic asset allocation portfolio: It invests in a diversified portfolio of multiple assets, buy-and-hold without frequently changing the asset allocation weights.
- Suitable: For long-term (more than 15 years, preferably more than 20 years), want to be tax efficient and can withstand interim drawdown or loss as high as 50% or more.
- Pros:
  - Less error-prone
  - Infrequent rebalancing or transactions
  - Tax efficient for taxable brokerage investments
- Cons:
  - Interim loss or drawdown can be substantial
  - Possible low returns for an extended period, such as 10 years or longer
Tactical asset allocation portfolio: it invests in a diversified portfolio of multiple assets, dynamically adjust stock and bond allocations to minimize losses during market stress.
- Suitable: For long-term (more than 10 years or preferably longer) capital. Investors are willing to rebalance as frequent as monthly.
- Pros:
  - Reduce large interim loss or drawdown
  - Less sensitive to investment entry point
  - Likely to improve returns
- Cons
  - Demand more frequent rebalancing or transactions
  - Less tax efficient — more suitable in a tax-deferred account such as 401(k) or IRA
  - Can experience a period of lower returns compared to a broad-based strategic allocation or a buy-and-hold benchmark, especially in some bull markets

These portfolios are proactively monitored and rebalanced on a monthly basis when needed, ensuring it remains in line with its target allocation.

Let us know (Email us) if you need help to create a custom model portfolio for your plan.

Customize a model portfolio now

Example model portfolios

The following provides historical returns for example model portfolios with a moderate risk profile (at most 60% in stocks) and their comparison with benchmark index funds. You can customize these portfolios according to your own risk profile.

Strategic Asset Allocation Model Portfolio

The following portfolio is based on the MyPlanIQ Strategic Asset Allocation (SAA) strategy.

Tactical Asset Allocation Model Portfolio

The following portfolio is based on the MyPlanIQ Tactical Asset Allocation (TAA) strategy.

Name	YTD Return	1Yr AR	3Yr AR	5Yr AR	10Yr AR	15Yr AR	20Yr AR	Common	Inception
Morningstar 401K ETF Clone-US-Optimized Tactical Asset Allocation Moderate	NA	9.47%	0.23%	6.71%	3.45%	4.70%	6.55%	…	…
VFINX (VANGUARD 500 INDEX FUND INVESTOR SHARES)	NA	37.82%	8.86%	15.20%	12.89%	14.04%	10.46%	…	…
VSMGX (VANGUARD LIFESTRATEGY MODERATE GROWTH FUND INVESTOR SHARES)	NA	22.89%	2.25%	6.63%	6.01%	7.19%	6.10%	…	…

	Ticker/Portfolio	Last 1 Week	1 Yr	3 Yr	5 Yr	10 Yr	15 Yr	20 Yr	Common	Inception	YTD	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004	2003	2002	2001	2000	1999	1998	1997	1996	1995	1994	1993	1992	1991	1990	1989	1988	1987	1986	1985	1984	1983	1982	1981	1980	1979
Annualized Return (%)	Morningstar 4… Moderate	-0.91	9.47	0.23	6.71	3.45	4.70	6.55	…	…	NA	-0.08	0.76	1.75	-6.73	17.45	17.14	6.58	-7.78	3.83	5.23	-5.69	2.97	13.45	9.23	-1.22	10.09	15.07	-3.14	20.26	19.10	9.45	8.69	15.37	1.50	3.51	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA
	VFINX (VANGUA…R SHARES)	-1.79	37.82	8.86	15.20	12.89	14.04	10.46	…	…	NA	17.72	24.84	26.12	-18.24	28.53	18.74	31.33	-4.55	21.66	11.83	1.23	13.52	32.17	15.82	1.96	14.91	26.52	-37.02	5.39	15.64	4.77	10.74	28.50	-22.17	-12.03	-9.05	21.08	28.62	33.18	22.87	37.45	1.18	10.15	8.24	32.05	-3.33	28.37	14.92	3.97	9.30	22.60	3.67	17.07	19.25	-8.55	27.89	-2.07
	VSMGX (VANGUA…R SHARES)	-1.02	22.89	2.25	6.63	6.01	7.19	6.10	…	…	NA	16.26	10.28	15.51	-16.01	10.08	13.59	19.30	-6.28	14.86	7.09	-2.21	6.38	14.73	9.78	0.12	13.14	20.35	-26.49	7.21	13.30	5.68	11.76	22.40	-10.34	-4.78	1.27	14.09	21.59	17.90	10.77	26.58	2.04	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA
Sharpe Ratio	Morningstar 4… Moderate	NA	-0.70	-0.47	0.28	0.13	NA	NA	…	…	NA	-0.05	-0.78	-0.27	-0.56	1.74	1.47	0.98	-1.12	0.59	0.71	-0.87	0.47	1.69	1.68	-0.13	0.71	1.28	-0.36	1.21	1.38	0.83	0.90	1.52	0.12	0.85	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA
	VFINX (VANGUA…R SHARES)	NA	1.89	1.22	0.63	0.75	NA	NA	…	…	1.30	0.80	1.67	1.73	-0.82	2.17	0.53	2.39	-0.35	3.16	0.89	0.08	1.19	2.90	1.25	0.08	0.82	0.97	-0.92	0.14	1.22	0.24	0.88	1.63	-0.90	-0.68	-0.60	0.97	1.23	1.61	1.62	4.31	-0.19	0.90	0.57	1.91	-0.55	1.71	0.59	-0.01	0.30	1.47	-0.26	0.79	0.63	-1.30	1.17	-3.84
	VSMGX (VANGUA…R SHARES)	NA	1.70	1.15	0.38	0.62	NA	NA	…	…	1.08	1.36	0.87	1.45	-1.22	1.32	0.70	2.77	-0.87	3.75	0.83	-0.26	1.01	2.16	1.23	0.01	1.18	1.12	-0.98	0.39	1.34	0.49	1.49	2.09	-0.75	-0.59	-0.24	1.06	1.56	1.56	0.91	4.18	4.60	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA
Standard Deviation(%)	Morningstar 4… Moderate	NA	7.43	10.80	10.81	8.96	NA	NA	…	…	NA	3.09	7.44	9.30	14.51	10.02	11.54	5.28	8.14	5.43	7.11	6.59	6.31	7.92	5.47	9.72	14.18	11.74	11.14	14.27	11.45	8.73	8.58	9.66	3.40	1.41	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA
	VFINX (VANGUA…R SHARES)	NA	12.22	14.87	16.92	18.13	NA	NA	…	…	13.93	18.66	12.67	13.09	24.19	13.11	34.69	12.48	17.11	6.68	13.11	15.51	11.39	11.07	12.74	23.36	18.07	27.22	40.99	16.02	10.04	10.29	11.10	17.04	25.96	21.55	22.20	18.17	20.48	18.21	11.77	7.77	9.92	8.83	9.93	14.69	16.06	13.09	17.07	33.80	16.55	11.67	12.80	13.62	18.09	14.61	16.53	23.80
	VSMGX (VANGUA…R SHARES)	NA	8.47	8.97	10.05	10.33	NA	NA	…	…	10.48	9.89	7.69	8.26	14.34	7.62	19.08	6.43	8.81	3.80	8.31	8.51	6.28	6.80	7.99	14.68	11.10	18.01	27.95	10.37	7.43	6.96	7.25	10.38	15.37	12.42	12.30	10.07	11.65	9.10	7.74	5.41	15.57	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA
Draw Down(%)	Morningstar 4… Moderate	NA	6.31	16.64	16.64	16.64	NA	NA	…	…	NA	0.44	6.31	7.18	16.24	5.04	13.07	2.82	13.50	3.12	6.93	9.64	6.91	6.85	4.50	10.63	10.34	5.88	15.97	9.49	12.46	5.93	7.87	4.73	2.96	1.02	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA
	VFINX (VANGUA…R SHARES)	NA	8.92	18.76	24.59	33.83	NA	NA	…	…	8.92	18.76	8.45	9.97	24.59	5.14	33.83	6.63	19.40	2.60	10.29	12.05	7.30	5.59	9.60	18.71	15.66	27.17	47.73	9.88	7.47	7.01	7.47	13.79	33.02	29.18	16.55	11.81	19.20	10.79	7.45	2.50	8.48	4.84	5.63	5.57	19.19	7.35	7.24	33.08	11.63	7.51	10.58	7.02	13.21	15.61	16.03	2.40
	VSMGX (VANGUA…R SHARES)	NA	6.64	9.62	22.29	22.43	NA	NA	…	…	6.64	9.62	4.17	8.15	21.74	3.53	22.43	3.12	11.47	1.14	6.20	8.34	4.70	5.67	6.27	12.90	8.64	19.61	36.81	6.11	6.13	4.74	5.89	8.91	20.06	17.93	8.77	6.26	11.99	6.02	4.75	1.82	1.89	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA
Yield(%)	Morningstar 4… Moderate	NA	4.09	3.39	2.80	2.44	NA	NA	…	…	NA	NA	0.70	3.82	3.37	2.65	1.83	2.69	1.45	0.44	2.84	2.45	3.15	1.61	3.18	1.80	2.41	3.06	2.48	2.77	1.83	2.57	2.28	1.48	1.19	2.28	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA
	VFINX (VANGUA…R SHARES)	0.00	1.18	1.60	1.52	2.78	3.91	3.46	…	…	0.27	1.20	1.41	1.69	1.26	1.48	2.12	2.28	1.81	2.00	2.14	1.97	1.96	2.19	2.30	1.92	1.88	2.45	1.88	1.91	1.83	1.79	1.91	1.71	1.28	1.08	0.97	2.11	1.93	2.77	2.64	3.14	3.13	3.83	3.10	5.86	3.71	4.46	4.31	2.79	3.90	4.71	4.49	5.04	5.34	4.64	5.79	0.00
	VSMGX (VANGUA…R SHARES)	0.00	5.51	6.00	4.34	4.54	4.38	4.18	…	…	0.00	5.80	7.43	4.45	2.18	4.11	3.77	2.85	2.41	2.40	2.34	2.10	2.20	2.14	2.47	2.22	2.38	2.79	2.66	3.04	2.89	2.53	3.74	2.48	2.67	2.88	6.36	5.93	7.27	3.78	3.63	3.65	2.91	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA

Data as of 10/31/2024, Common starting date is 12/31/2000

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