At a glance
ITDD charges 0.11% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $104.8M in assets, the 8th largest of that group; it paid 1.66% of its price in distributions over the past 12 months, annual. Over the past year it returned +9.4% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +18.9% a year. Its ten largest positions make up 97.0% of the fund, out of 13 in all.
The short version
iShares LifePath Target Date 2040 ETF (ITDD) is a fund of funds. It holds 13 other iShares ETFs covering US and international stocks, bonds and cash, and it shifts toward bonds as 2040 approaches. It is built as a hands-off portfolio for people retiring around 2040. Its 0.11% expense ratio is low. But with $105 million in net assets (as of July 31, 2026), it is small and has only about three years of history.
Price history
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ITDD +9.4% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| ITDD official prospectus, to Dec 31, 2024 | — | +13.11% | — | — | — | +20.28% |
| Russell1000Index index, same period | — | +24.51% | — | — | — | +29.73% |
| Bloomberg US Aggregate Bond Index index, same period | — | +1.25% | — | — | — | +7.99% |
| ITDD price data to Oct 27, 2026 | +9.5% | +9.4% | +18.9% | — | — | +17.9% |
- Over the year to Oct 27, 2026, ITDD returned +9.4%, 8th of 8 among similar funds.
- Its worst full calendar year was 2024 (+13.1%); its best was 2025 (+17.6%).
- The deepest fall in its price history was 12.5% (Feb 18, 2025 to Apr 8, 2025), recovered by May 16, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +9.5% | — |
| 2025 | +17.6% | — |
| 2024 | +13.1% | +13.11% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.6400 | +33.3% |
| 2024 | $0.4800 |
What's inside
As of Jul 31, 2026, the fund held 13 securities; the ten largest made up 96.95% of assets, and 2.66% sat in cash and money-market holdings.
| Fund held | Weight | |
|---|---|---|
| ISHARES RUSSELL 1000 ETF Other | 42.88% | |
| ISHARES CORE MSCI INTERNATIONAL DEVELOPED MARKETS Other | 18.96% | |
| ISHARES US TREASURY BOND ETF Other | 8.52% | |
| ISHARES CORE MSCI EMERGING MARKETS ETF Other | 8.19% | |
| ISHARES MBS ETF Other | 5.72% | |
| ISHARES 10 YEAR INVESTMENT GRADE CORPORATE BOND E Other | 3.18% | |
| ISHARES CORE U S REIT ETF Other | 3.03% | |
| ISHARES TRUST ISHARES 1 5 YEAR INVESTMENT GRADE CO Other | 2.31% | |
| ISHARES GLOBAL INFRASTRUCTURE ETF Other | 2.22% | |
| ISHARES RUSSELL 2000 ETF Other | 1.97% | |
| ISHARES 5 10 YEAR INVESTMENT GRADE CORPORATE BOND Other | 1.55% | |
| ISHARES 10 20 YEAR TREASURY BOND ETF Other | 1.00% | |
| ISHARES 0 5 YEAR TIPS BOND ETF Other | 0.30% |
By country
United States 99.8%By asset type
Other 99.8%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $13.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +3.25%, +0.01%, -0.70%.
How it works
ITDD does not track a published index. BlackRock's adviser, BFA, decides how to split the money among affiliated iShares ETFs, which the prospectus calls "Underlying Funds." BFA uses its own risk tools, which look at past and expected returns, risk, and how asset classes move together. At least 80% of assets must resemble a custom 2040 benchmark that BlackRock does not publish. BFA picks the underlying funds based on their category, past risk and performance, and how they fit with the rest of the portfolio.
The mix follows a "glide path," a set schedule that moves money from stocks to bonds as the target date nears. The target is 87% stocks (including REITs, which are real estate companies) at 20 years from retirement, 65% at 10 years and 40% at the target date. As of July 31, 2025, about 72.39% was in stock funds, 23.01% in bond funds and the rest in money market funds. Managers may move away from these targets, usually by small amounts. Near 2040, the fund is expected to look like BlackRock's LifePath Retirement fund and may merge with it, if the board approves.
As of July 31, 2026, the largest positions were the iShares Russell 1000 ETF (42.9%), iShares Core MSCI International Developed Markets ETF (19.0%), iShares U.S. Treasury Bond ETF (8.5%) and iShares Core MSCI Emerging Markets ETF (8.2%). Portfolio turnover was 17%. BlackRock earns fees from the underlying funds, which the prospectus flags as a possible conflict of interest.
What it really costs
- ITDD charges 0.11% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- Of that, 0% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $11 in the first year and $141 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| ITDD | $11 | $35 | $62 | $141 |
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
It is built as an all-in-one stock-and-bond portfolio that adjusts itself for a 2040 retirement date.
ITDD could be the main holding for someone retiring around 2040. It spreads money across US, international and emerging-market stock funds plus Treasury, mortgage and corporate bond funds, and it cuts stock exposure over time. Its record is short. It launched in October 2023, so it missed the 2008, 2020 and 2022 sell-offs. Its weakest calendar year, 2024, still returned 13.1%. Its deepest drop was 12.5%, from February 18 to April 8, 2025, and it recovered by May 16, 2025. Most of its assets are still in stock funds, so a true bear market could hit harder. That matters for anyone who has to sell shares in a bad year. The yield was 1.66% as of October 27, 2026, paid once a year, so this is not an income fund. Its 0.11% expense ratio is low. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- People expecting to retire around 2040 who want one fund that moves from stocks toward bonds on a set schedule.
- Cost-conscious investors: the 0.11% expense ratio works out to $11 in the first year on $10,000 under the SEC's standard example.
- Investors willing to let BlackRock set the mix, led by the iShares Russell 1000 ETF at 42.9% as of July 31, 2026.
Look elsewhere if
- Retirees who need steady cash: the yield was 1.66% as of October 27, 2026, and it pays only once a year.
- Investors who want a long track record: it launched in October 2023 and has never been through a bear market like 2022's.
- People retiring well before or after 2040, or who want to set their own stock-bond mix rather than follow a fixed glide path.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| ITDD this fund | 0.11% | $104.8M | +9.4% | +18.9% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
What does ITDD hold?
ITDD holds 13 other iShares ETFs, not individual stocks or bonds. As of July 31, 2026, the largest were the iShares Russell 1000 ETF (42.9%), iShares Core MSCI International Developed Markets ETF (19.0%), iShares U.S. Treasury Bond ETF (8.5%), iShares Core MSCI Emerging Markets ETF (8.2%) and iShares MBS ETF (5.7%). The top 10 made up 96.95% of the fund. Smaller positions include REIT, infrastructure, small-company, corporate bond and short-term TIPS funds.
What is the ITDD expense ratio?
ITDD's expense ratio is 0.11%, according to its prospectus filed November 21, 2025. The fund's own management fee is listed at 0%. In the SEC's standard example ($10,000 invested, 5% yearly return, shares sold at the end), total costs would be about $11 after one year, $35 after three years, $62 after five years and $141 after ten years.
Does ITDD pay dividends?
Yes, but only once a year. Over the 12 months to October 27, 2026, it paid $0.64 per share, a yield of 1.66%. The payouts come from the stock and bond funds it holds. The fund is built to grow savings toward a 2040 retirement date, not to pay high or frequent income, so it may not meet the needs of someone who wants monthly cash.
What happens to ITDD when it reaches 2040?
ITDD becomes more conservative as 2040 nears. Its glide path targets 40% stocks and 60% bonds at the target date, down from 87% stocks at 20 years out. In the year before that date, its mix is expected to look like BlackRock's LifePath Retirement fund. The two funds are then expected to merge into one, if the trust's board approves. The fund does not guarantee enough money to last through retirement.
ITDD vs BUFR: which is cheaper?
ITDD is much cheaper: 0.11% a year, compared with 0.95% for the FT Vest Laddered Buffer ETF (BUFR). They follow different strategies, though. BUFR is a buffer fund that uses options to soften losses and limit gains. ITDD is a stock-and-bond target-date fund. As of October 27, 2026, ITDD returned 9.4% over one year and 18.9% a year over three years. BUFR returned 11.6% and 16.8%. BUFR is far larger, at $10.5 billion.