We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BlackRock recently launched the industry's first suite of 10 target-date ETFs that hold a mix of stock and bond funds and automatically adjust asset allocation over time. The world's largest asset manager had previously offered target-date ETFs but shuttered them in 2014 due to a lack of investor interest.
Target-date funds, earlier offered only as collective investment trusts or mutual funds, are designed for specific retirement dates and are very popular in 401(k) plans. These funds are meant for 'set it and forget it' investors as the exposure shifts from riskier to more conservative over 'glide paths' as the target retirement year approaches.
However, according to BlackRock, about 57 million Americans do not have access to a 401(k) or company-sponsored retirement plan. Target-date ETFs are suitable for taxable accounts rather than tax-advantaged workplace retirement plans, due to the tax efficiency of the ETF structure.
BlackRock's new suite targets retirement dates every five years from 2025 through 2065. These ETFs follow an 'ETF of ETFs' structure and charge expense ratios ranging from 0.08% to 0.11%.
The iShares LifePath Target Date 2025 ETF , designed for investors expecting to retire around the year 2025, has about a 57% allocation to bonds and 43% to equities.
The iShares LifePath Target Date 2065 ETF (ITDI - Free Report) , suitable for much younger investors, has almost 99% of its assets invested in equities.
The iShares Russell 1000 ETF (IWB - Free Report) , the iShares U.S. Treasury Bond ETF (GOVT - Free Report) and the iShares Core MSCI Emerging Markets ETF (IEMG - Free Report) are among the top holdings in these ETFs.
To learn more, please watch the short video above.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Target Date ETFs For Retirement Investors
BlackRock recently launched the industry's first suite of 10 target-date ETFs that hold a mix of stock and bond funds and automatically adjust asset allocation over time. The world's largest asset manager had previously offered target-date ETFs but shuttered them in 2014 due to a lack of investor interest.
Target-date funds, earlier offered only as collective investment trusts or mutual funds, are designed for specific retirement dates and are very popular in 401(k) plans. These funds are meant for 'set it and forget it' investors as the exposure shifts from riskier to more conservative over 'glide paths' as the target retirement year approaches.
However, according to BlackRock, about 57 million Americans do not have access to a 401(k) or company-sponsored retirement plan. Target-date ETFs are suitable for taxable accounts rather than tax-advantaged workplace retirement plans, due to the tax efficiency of the ETF structure.
BlackRock's new suite targets retirement dates every five years from 2025 through 2065. These ETFs follow an 'ETF of ETFs' structure and charge expense ratios ranging from 0.08% to 0.11%.
The iShares LifePath Target Date 2025 ETF , designed for investors expecting to retire around the year 2025, has about a 57% allocation to bonds and 43% to equities.
The iShares LifePath Target Date 2065 ETF (ITDI - Free Report) , suitable for much younger investors, has almost 99% of its assets invested in equities.
The iShares Russell 1000 ETF (IWB - Free Report) , the iShares U.S. Treasury Bond ETF (GOVT - Free Report) and the iShares Core MSCI Emerging Markets ETF (IEMG - Free Report) are among the top holdings in these ETFs.
To learn more, please watch the short video above.