ETF Evaluator:
iShares LifePath Target Date 2040 ETF ()
Follow This ETF
(as of Aug 26)
Best Performing in Target-Date 2040 Over the Last Year
| 17.3% | iShares LifePath Target Date 2040 ETF (ITDD) |
| 17.3% | Target-Date 2040 () |
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Risk
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ETF Details
iShares LifePath Target Date 2040 ETF Overview
iShares LifePath Target Date 2040 ETF (ITDD) is an actively managed Allocation Target-Date 2040 exchange-traded fund (ETF). iShares launched the ETF in 2023.
The investment seeks to provide retirement outcomes through exposure to a broad portfolio of ETFs which adjusts its allocation as it approaches its target date.
The fund is actively managed and allocates and reallocates its assets among a combination of underlying funds in proportions based on its own investment strategy.
About iShares LifePath Target Date 2040 ETF (ITDD)
There are 2 members of the management team with an average tenure of 2.79 years: Suzanne Ly (2023) and Christopher Chung (2023). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: Russell 1000 TR USD index with a weighting of 100% and Bloomberg US Agg Bond TR USD index with a weighting of 100%. iShares LifePath Target Date 2040 ETF has 15 securities in its portfolio. The top 10 holdings constitute 97.4% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
iShares LifePath Target Date 2040 ETF is part of the Allocation global asset class and is within the Allocation ETF group. iShares LifePath Target Date 2040 ETF has 30.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 49.5% There is 28.4% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 21.6% (20.0% domestic bond, 1.6% foreign bond and 0.0% convertible bond). iShares LifePath Target Date 2040 ETF has 0.6% of the portfolio in cash.
Assets Under Management
The fund has $104 million in total assets, which is above the $104 million average for the Target-Date 2040 category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
ITDD Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The iShares LifePath Target Date 2040 ETF expense ratio is low compared to funds in the Target-Date 2040 category. iShares LifePath Target Date 2040 ETF has an expense ratio of 0.11%, which is the same as its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. iShares LifePath Target Date 2040 ETF has a portfolio turnover rate of 17%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 17% for the Target-Date 2040 category.
Recently, in the month of July 2026, iShares LifePath Target Date 2040 ETF returned -0.7%, which earned it a grade of A, as the Target-Date 2040 category had an average return of -0.7%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
iShares LifePath Target Date 2040 ETF has a trailing yield of 1.68%, which is equal to the 1.68% category average.
The fund normally distributes its income annually and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
iShares LifePath Target Date 2040 ETF Grades
Year to date, the ETF has returned 8.6%, 0.0 percentage points equal to the category, which translates into a grade of C. The fund has returned 17.3% over the past year (grade of C).
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ITDD Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| ITDD Return (NAV) | -0.7% | 2.5% | 17.3% | na | na | na |
| ITDD Return (Price) | -0.7% | 2.6% | 17.5% | na | na | na |
| NAV +/- Price Return | -0.003% | -0.037% | -0.244% | na | na | na |
| Target-Date 2040 Avg | -0.7% | 2.5% | 17.3% | na | na | na |
| ITDD Grade (NAV) | C | C | C | na | na | na |
| +/- Category (NAV) | 0.0% | 0.0% | 0.0% | na | na | na |
| ITDD Tax-Cost Ratio | na | na | 0.6% | na | na | na |
ITDD Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| ITDD Return (NAV) | 8.6% | 17.7% | 13.1% | na | na | na | na | na | na | na | na |
| ITDD Return (Price) | 8.7% | 17.7% | 13.1% | na | na | na | na | na | na | na | na |
| NAV +/- Price Ret | 0.018% | 0.000% | -0.004% | na | na | na | na | na | na | na | na |
| Target-Date 2040 Avg | 8.6% | 17.7% | 13.1% | na | na | na | na | na | na | na | na |
| ITDD Grade (NAV) | C | C | C | na | na | na | na | na | na | na | na |
| +/- Category | 0.0% | 0.0% | 0.0% | na | na | na | na | na | na | na | na |
| Risk Measures | |
| Beta: | na |
| R-Squared: | na |
| Standard Deviation: | na |
| Category Risk Index: | na |
| Category Risk Rating: | |
| Total Risk Index: | na |
| Total Risk Rating: | |
| Portfolio Characteristics | |
| Yield: | 1.7% |
| Total Assets: | $ 105 Mil |
| Share Class Assets: | $ 105 Mil |
| Turnover: | 17.0% |
| Expense Ratio: | 0.11% |
| Index Fund: | No |
| Index Tracked: | Russell 1000 TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Annually |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 2.8 years | |||
| Average Tenure: 2.8 years | |||
| Managers (Year): Ly Suzanne (2023), Chung Christopher (2023) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 15 |
| % in Top 10 Holdings: | 97.4% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 30.0% |
Portfolio Allocation |
|
| Domestic Stock: | 49.5% |
| Foreign Stock: | 28.4% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 20.0% |
| Foreign Bond: | 1.6% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.6% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | iShares |
| Phone Number: | 800-474-2737 |
| Website: | au.ishares.com |
| Inception Date: | October 17, 2023 |
Expenses and Fees
| Expense Ratio (%): | 0.11% (Rating: Low) |
| Category Average Expense Ratio (%): | 0.11% |
