Implications of "Best Interest" Rule for Annuities
Aaron Levitt
|
With broker-dealers and agents now acting in favor of clients, investors may be...
Welcome to MutualFunds.com
Please help us personalize your experience and select the one that best describes you.
Your personalized experience is almost ready.
Thank you!
Check your email and confirm your subscription to complete your personalized experience.
Thank you for your submission
We hope you enjoy your experience
You can read on how target-date funds work to familiarize yourself with this class of mutual funds.
See how cross pollination between mutual funds and ETFs works.
The BlackRock LifePath Series and the Schwab Target Index Funds are two groups of target-date funds that have recently made the switch to ETFs. BlackRock made the change not only to focus on low fees, but also to offer varying degrees of active management within the products. The LifePath Index funds will use traditional index funds to provide market exposure, while the LifePath Smart Beta series will use more actively managed smart-beta ETFs to try and beat the market.
Schwab’s decision came down, primarily, to fees and simplicity. Employer-sponsored plans will be charged just 8 basis points for the new TDF funds regardless of overall plan size. This is a big advantage for smaller retirement plans, which typically didn’t receive the pricing advantages that larger plans did in the past. Individual investors, who would be charged 13 basis points, also get a low-cost alternative.
Target-date funds using ETFs also have the advantage of greater transparency. Collective investment funds have become increasingly popular among plan providers who wish to have more control over their target-date fund offerings. Those funds, however, don’t have the fiduciary requirements that traditional target-date funds do. ETF-based target-date funds likely do a better job of giving investors greater visibility into the products and also help address the recent spate of 401(k) litigation cases by providing greater transparency into their products.
Read about important questions you should ask your target-date fund provider.
Learn about the pros and cons of ETFs compared to mutual funds.
Another example would be retirement plans that use collective investment funds. Providers likely built them with their own participant base in mind and have already negotiated ultra-low fees. In these cases, target-date funds using ETFs may not pique much interest from the provider.
Check out our Retirement Fund section to read up on the different types of pre-packaged target-date funds.
In case if you are wondering whether mutual funds are right for you at all, you should read why mutual funds, in general, should be a part of your portfolio.
Be sure to follow our Target-date Funds section to make the right investment decision.
Receive email updates about best performers, news, CE accredited webcasts and more.
Aaron Levitt
|
With broker-dealers and agents now acting in favor of clients, investors may be...
Justin Kuepper
|
Let’s take a look at what sets China apart from other emerging markets,...
News
Iuri Struta
|
Check out the latest edition of mutual fund scorecard.
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...
You can read on how target-date funds work to familiarize yourself with this class of mutual funds.
See how cross pollination between mutual funds and ETFs works.
The BlackRock LifePath Series and the Schwab Target Index Funds are two groups of target-date funds that have recently made the switch to ETFs. BlackRock made the change not only to focus on low fees, but also to offer varying degrees of active management within the products. The LifePath Index funds will use traditional index funds to provide market exposure, while the LifePath Smart Beta series will use more actively managed smart-beta ETFs to try and beat the market.
Schwab’s decision came down, primarily, to fees and simplicity. Employer-sponsored plans will be charged just 8 basis points for the new TDF funds regardless of overall plan size. This is a big advantage for smaller retirement plans, which typically didn’t receive the pricing advantages that larger plans did in the past. Individual investors, who would be charged 13 basis points, also get a low-cost alternative.
Target-date funds using ETFs also have the advantage of greater transparency. Collective investment funds have become increasingly popular among plan providers who wish to have more control over their target-date fund offerings. Those funds, however, don’t have the fiduciary requirements that traditional target-date funds do. ETF-based target-date funds likely do a better job of giving investors greater visibility into the products and also help address the recent spate of 401(k) litigation cases by providing greater transparency into their products.
Read about important questions you should ask your target-date fund provider.
Learn about the pros and cons of ETFs compared to mutual funds.
Another example would be retirement plans that use collective investment funds. Providers likely built them with their own participant base in mind and have already negotiated ultra-low fees. In these cases, target-date funds using ETFs may not pique much interest from the provider.
Check out our Retirement Fund section to read up on the different types of pre-packaged target-date funds.
In case if you are wondering whether mutual funds are right for you at all, you should read why mutual funds, in general, should be a part of your portfolio.
Be sure to follow our Target-date Funds section to make the right investment decision.
Receive email updates about best performers, news, CE accredited webcasts and more.
Aaron Levitt
|
With broker-dealers and agents now acting in favor of clients, investors may be...
Justin Kuepper
|
Let’s take a look at what sets China apart from other emerging markets,...
News
Iuri Struta
|
Check out the latest edition of mutual fund scorecard.
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...