The experts at social investing platform eToro and multinational investment management company Franklin Templeton have teamed up to create Smart Portfolios that adjust according to your time horizon.
Timing is everything, as the saying goes… and it’s true for investing, too. When your financial goals are far off in the future and time is on your side, you may be more comfortable with a higher-risk, higher-growth long-term investment strategy. But the closer the target date for your goal looms, the more conservative you may want to be in order to limit risking your capital.
What if your portfolio could automatically adjust according to your chosen timeline, striking a balance between growth and risk at each stage of your investment journey? That’s exactly what eToro’s Target Model series of Smart Portfolios, created together with Franklin Templeton, are designed to do.
What is target-year investing?
Target-year portfolios are designed to help investors navigate the complexities of long-term investing, usually when working towards a particular goal. These portfolios automatically adjust their asset allocation over time, focusing on a “higher risk, higher potential” strategy in the early years and becoming more conservative as the target year gets closer.
How it works:
- Target date: These portfolios are based on a targeted timeline. The year in the portfolio’s name (for example, “Target 2035”) represents the approximate year the investor plans to use the funds.
- Glide path: The portfolio gradually shifts its asset allocation over time, moving from a more growth-oriented portfolio (high equity percentage) to a more conservative portfolio (higher fixed-income percentage) as the target date nears.
Key features:
- No management fees: eToro’s Target Model Smart Portfolios are designed for investors who prefer a hands-off approach while the experts handle the asset allocation. All this without any management fees or commissions.*
- No manual rebalancing: Using models by Franklin Templeton, each portfolio is automatically rebalanced to match its glide path – gradually shifting from growth-oriented assets (equity ETFs) to more conservative assets (fixed-income ETFs) as your selected target date approaches.
- No lock-up period: You are free to add or withdraw funds at any time.
- Global diversification: These portfolios invest in a mix of global ETFs for broad market exposure and diversification.
What to consider:
- Not guaranteed: Target Model portfolios, like any investment, are not guaranteed to achieve a specific return or protect investors from market fluctuations.
- Individual needs: It’s important to consider individual investment goals, risk tolerance, and time horizon when selecting a target-year portfolio.
Investing that evolves with you
Whatever your timeline, there’s a portfolio strategy designed to align with your goals and risk tolerance.
Target 2028
Strategy: Stability-focused with some room to grow
🔹 Starts out with 40% higher-risk equity and 60% lower-risk fixed-income assets, gradually shifting to 90% lower-risk fixed income
🔹 Moderate equity exposure allows for a moderate risk profile
Target 2030 (Coming soon)
Strategy: Balanced growth with capital protection
🔹 Starts at 60% higher-risk equity and 40% lower-risk fixed-income assets, gradually moving to 90% lower-risk fixed income
🔹 Includes 100% capital protection if held to 2030 (Terms and Conditions apply)
Target 2033
Strategy: Growth potential with evolving risk control
🔹 Starts with 80% higher-risk equity, gradually shifting towards lower-risk fixed-income assets
🔹 An 8-year investment horizon aims to capture mid-to-long-term market opportunities
Target 2035
Strategy: Growth-oriented and aggressive, then pivot
🔹 Begins with a 90% higher-risk equity allocation to maximise early growth potential
🔹 Shifts to 90% lower-risk fixed income near target year, aiming to preserve accumulated value
Your goals, on your own timeline
What if you’re looking for a low-risk investment to preserve your capital without a specific target date? Or, maybe an open-ended higher-risk growth-oriented strategy suits you better… Two additional portfolios, also created by Franklin Templeton, round out the series, so that you can choose whatever fits your financial goals, with or without a set target year.
Both of these portfolios have no target date – invest as long as the strategy aligns with your goal and risk comfort.
FixedIncome-FT
Strategy: Fixed income with capital preservation
🔹 Very conservative exposure of 10% higher-risk equity and 90% lower-risk fixed-income assets
🔹 Allocation of assets prioritises generating potential returns and limiting volatility
Equity-FT
Strategy: 100% equity for long-term growth potential
🔹 Higher level of risk to allow for greater potential gains
🔹 Long-term investment perspective with no risk reduction over time
Trusted experts for your peace of mind
With over $1.5 trillion in assets under management1 and 75+ years of global experience, Franklin Templeton brings world-class investment expertise to every model. Their research team selects diversified ETFs across global markets, ensuring robust, adaptive portfolios – expert management with zero management fees or commissions.*
Choose your path to targeted investing
| Portfolio | Target | Equity Start | Fixed Income Start | Final Allocation | Risk Profile | |
| Fixed Income | None | 10% | 90% | No change | Conservative | |
| Target 2028 | June 2028 | 40% | 60% | 10% equity / 90% bonds | Conservative-Moderate | |
| Target 2030 | June 2030 | 60% | 40% | 10% equity / 90% bonds | Moderate (Capital Protected*) | |
| Target 2033 | June 2033 | 80% | 20% | 10% equity / 90% bonds | Moderate–High | |
| Target 2035 | June 2035 | 90% | 10% | 10% equity / 90% bonds | Aggressive | |
| Equity | None | 100% | 0% | No change | Aggressive |
Investments in these portfolios involve varying degrees of risk depending on the asset allocation and target year. Portfolios with higher equity allocations can carry higher volatility and potential for greater returns, but also greater risk of loss. Conversely, portfolios with higher fixed-income allocations tend to be more conservative but may offer lower returns. Past performance is not indicative of future results, and there is no guarantee that investment objectives will be achieved. Investors should carefully consider their own risk tolerance, investment horizon, and financial circumstances before investing.
*Capital protection is subject to specific Terms and Conditions and is not guaranteed across all portfolios.
* Other fees may apply; see here for more information.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk. Other fees apply.
Target 2030: if capital is withdrawn prior to the minimum holding period, June 30, 2030, your capital will be at risk. Please see Terms & Conditions for further details on the associated risks.