Fund Evaluator:

Voya Solution 2040 Port S2 Overview

Voya Solution 2040 Port S2 (ISNNX) is an actively managed Allocation Target-Date 2040 fund. Voya launched the fund in 2011.

The investment seeks to provide total return consistent with an asset allocation targeted at retirement in approximately 2040. The Portfolio invests primarily in a combination of actively managed funds and passively managed index funds,including exchange-traded funds. The underlying funds may or may not be affiliated with the investment adviser. The underlying funds invest in U.S. stocks, international stocks, U.S. bonds, and other debt instruments and the Portfolio uses an asset allocation strategy designed for investors expecting to retire around the year 2040.

About Voya Solution 2040 Port S2 (ISNNX)

There are 2 members of the management team with an average tenure of 5.01 years: Barbara Reinhard (2019), Lanyon Blair (2023). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: MSCI ACWI NR USD index with a weighting of 100% and Bloomberg US Agg Bond TR USD index with a weighting of 100%. Voya Solution 2040 Port S2 has 21 securities in its portfolio. The top 10 holdings constitute 87.1% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Voya Solution 2040 Port S2 is part of the Allocation global asset class and is within the Allocation fund group. Voya Solution 2040 Port S2 has 30.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 51.5%. There is 29.4% allocated to foreign stock, and 0.1% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 17.5% (16.7% domestic bond, 0.8% foreign bond and 0.0% convertible bond). Voya Solution 2040 Port S2 has 1.6% of the portfolio in cash.

Assets Under Management

The fund has $2 million in total assets, which is below the $1 billion 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.

ISNNX 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 Voya Solution 2040 Port S2 expense ratio is high compared to funds in the Target-Date 2040 category. Voya Solution 2040 Port S2 has an expense ratio of 1.13%, which is 68% higher than its category average, making the fund expense ratio grade a F. 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. Voya Solution 2040 Port S2 has a portfolio turnover rate of 38%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 22% for the Target-Date 2040 category.

Recently, in the month of July 2026, Voya Solution 2040 Port S2 returned -1.1%, which earned it a grade of D, as the Target-Date 2040 category had an average return of -0.8%. 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 funds in that category.

Voya Solution 2040 Port S2 has a trailing yield of 1.49%, which is below the 1.91% 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.

Voya Solution 2040 Port S2 Grades

Year to date, the fund has returned 8.8%, 0.0 percentage points better than the category, which translates into a grade of C. The fund has returned 17.2% over the past year (grade of C), 14.4% over the past three years (grade of C) and 7.5% per year over the past five years (grade of D) and 9.9% per year over the past 10 years (grade of D).

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