Research, analysis, and thoughts on retirement investments & the future of personalization
In our Class on Asset Classes post, we laid the framework for the varying exposures that Target Date Funds (TDFS) can hold as underlying investments. Using that as a basis, we can compare the various TDF series and how they differ on various metrics. In this post, we’ll start by looking at how TDFs allocate to U.S. vs. International (Non-U.S.) exposure.
The 4th Quarter of 2019 saw some interesting flow activity into TDFs. While there are many ways to slice and dice the information, we’ll take a look at some interesting highlights below.
Target Date Fund issuers have the right to change their glide path whenever they see fit. It makes the historical and ongoing analysis of the TDF a bit trickier. Sometimes the changes can be rather large and sometimes just nuanced changes. During the 4Q19 quarter we saw a handful of changes, most of which fall in the nuanced camp.
All 2020 Target Date Funds reach their target year in 2020 but not all will take action. Why? Because every glide path is different.
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