Fund Evaluator:
BlackRock LifePath® Dyn 2040 K (LPSFX)
Follow This Fund
Best Performing in Target-Date 2040 Over the Last Year
| 28.5% | SP Funds 2040 Target Date Investor (SPTBX) |
| 21.0% | Fidelity Advisor Freedom Blend 2040 Z (FHHFX) |
| 20.4% | Fidelity Advisor Sust Trgt Dt 2040 Z (FSYDX) |
| 20.3% | Victory Target Retirement 2040 (URFRX) |
| 20.3% | Fidelity Advisor Sust Trgt Dt 2040 I (FSYBX) |
Fund Details
BlackRock LifePath® Dyn 2040 K Overview
BlackRock LifePath® Dyn 2040 K (LPSFX) is an actively managed Allocation Target-Date 2040 fund. BlackRock launched the fund in 2008.
The investment seeks to provide for retirement outcomes based on quantitatively measured risk. The fund manager allocates and reallocates its assets among a combination of equity and bond index funds, including those that seek to maximize exposure to companies with higher ESG ratings and money market funds in proportions based on its own comprehensive investment strategy. Under normal circumstances, the manager intends to invest primarily in affiliated open-end funds and affiliated exchange-traded funds ("ETFs"), some of which may be index funds. The fund is designed for investors expecting to retire or to begin withdrawing assets around the year 2040.
About BlackRock LifePath® Dyn 2040 K (LPSFX)
There are 3 members of the management team with an average tenure of 6.05 years: Philip Green (2016), Michael Pensky (2024), Christopher Chung (2020). Management tenure is more important for actively managed funds than passive index funds.
The fund 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%. BlackRock LifePath® Dyn 2040 K has 49 securities in its portfolio. The top 10 holdings constitute 104.6% 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.
BlackRock LifePath® Dyn 2040 K is part of the Allocation global asset class and is within the Allocation fund group. BlackRock LifePath® Dyn 2040 K has 38.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 39.2%. There is 39.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 26.7% (27.7% domestic bond, -1.0% foreign bond and 0.0% convertible bond). BlackRock LifePath® Dyn 2040 K has -3.8% of the portfolio in cash.
Assets Under Management
The fund has $329 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.
LPSFX 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 BlackRock LifePath® Dyn 2040 K expense ratio is below average compared to funds in the Target-Date 2040 category. BlackRock LifePath® Dyn 2040 K has an expense ratio of 0.34%, which is 50% lower than its category average, making the fund expense ratio grade a A. 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. BlackRock LifePath® Dyn 2040 K has a portfolio turnover rate of 16%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 22% for the Target-Date 2040 category.
Recently, in the month of July 2026, BlackRock LifePath® Dyn 2040 K returned -0.2%, which earned it a grade of A, 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.
BlackRock LifePath® Dyn 2040 K has a trailing yield of 1.64%, 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.
BlackRock LifePath® Dyn 2040 K Grades
Year to date, the fund has returned 9.4%, 0.6 percentage points better than the category, which translates into a grade of B. The fund has returned 18.1% over the past year (grade of B), 14.9% over the past three years (grade of B) and 8.6% per year over the past five years (grade of A) and 10.8% per year over the past 10 years (grade of A).
For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about BlackRock LifePath® Dyn 2040 K, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
LPSFX 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 |
|
| LPSFX Return (NAV) | -0.2% | 2.4% | 18.1% | 14.9% | 8.6% | 10.8% |
| LPSFX Grade | A | F | B | B | A | A |
| +/- Category | 0.6% | -0.4% | 1.0% | 0.6% | 0.9% | 0.8% |
| Target-Date 2040 Avg | -0.8% | 2.8% | 17.2% | 14.2% | 7.7% | 10.0% |
| LPSFX Tax Cost Ratio | na | na | 2.1% | 2.6% | 2.8% | 2.9% |
LPSFX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| LPSFX Return (NAV) | 9.4% | 17.2% | 14.2% | 19.5% | -16.9% | 16.4% | 14.2% | 26.0% | -7.3% | 21.7% | 8.2% |
| LPSFX Grade | B | C | A | A | B | B | D | A | B | A | B |
| +/- Category | 0.6% | -0.2% | 1.4% | 1.6% | 0.5% | 0.7% | -1.0% | 2.2% | 0.6% | 1.6% | 0.4% |
| Target-Date 2040 Avg | 8.8% | 17.4% | 12.8% | 17.9% | -17.4% | 15.7% | 15.3% | 23.8% | -7.9% | 20.1% | 7.8% |
| Risk Measures | |
| Standard Deviation: | 10.7% |
| Total Risk Index: | 0.88 - Average |
| Category Risk Index: | 1.01 - Average |
| Category Risk Grade: | C (57% Rank) |
| Beta: | 1.12 |
| R-Squared: | 95% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Blend |
| Bond Investment Style: | na |
| Yield: | 1.6% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $571 Mil |
| Fund Total Assets: | $ 330 Mil |
| Share Class Type: | Retirement |
| Portfolio Turnover: | 16% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 9.7 years | |||
| Average Tenure: 6.0 years | |||
| Managers (Year): Green Philip (2016), Chung Christopher (2020), Pensky Michael (2024) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 49 |
| % in Top 10 Holdings: | 104.6% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 38.8% |
Portfolio Allocation |
|
| Domestic Stock: | 39.2% |
| Foreign Stock: | 39.8% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 27.7% |
| Foreign Bond: | -1.0% |
| Convertible Bond: | 0.0% |
| Other: | -1.9% |
| Cash: | -3.8% |
Purchase Information
| Fund Family: | BlackRock |
| Phone Number: | 800-537-4942 |
| Website: | www.blackrock.com |
| Status: | Open |
| Inception Date: | May 30, 2008 |
| Min. Initial Purchase: | $5,000,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.34% ( Rating : Below Avg ) |
| Category Average Expense Ratio (%): | 0.67% |
| Share Class: | BlackRock LifePath® Dyn 2040 Instl |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
