Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Target Date Funds Are Turning to ETFs Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, July 26, 2012

Target Date Funds Are Turning to ETFs

News summary by MFWire's editors

Reuters reports that Franklin Templeton, Manning and Napier and Lincoln Financial, are some of the target date fund providers, that have increased their offerings' exposure to ETFs, saying it will help them manage the volatile markets and give them access to lower cost niche investment strategies compared to mutual funds.

Target date funds are the most popular 401(k) investment option, yet historically they have rarely incorporated ETFs.

ETF-only target date funds were introduced by Manning & Napier, as well as by Lincoln Financial in the past months, and Franklin Templeton is planning to increase the exposure of its funds to ETFs.

Paul Justice, Morningstar ETF analyst, said that "ETFs ... are low-cost ways of accessing certain areas of the market."

But this trend is still emerging, the report said. This is because Fidelity, T. Rowe Price and Vanguard, three largest providers of target date funds, still do not expose their funds in ETFs.

An emailed statement from a Fidelity spokeswoman said the Fidelity Freedom Fund does not have ETF exposure at the moment but might consider it in the future. "By prospectus the underlying funds have the possibility of investing in ETFs," she wrote. 

Edited by: HFD


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2019
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use