Target date funds

Elton, Edwin J., Martin J. Gruber, Andre De Souza, and Christopher R. Blake. “Target date funds”. Issue in Brief 17-2, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, January 2017. http://hdl.handle.net/2345/bc-ir:107289.
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Abstract

The brief's key findings are: (1) While nearly 60 percent of new 401(k) participants have savings in target date funds (TDFs), little research has looked under the hood of this investment vehicle. (2) This analysis uses a unique dataset with extensive information on the underlying mutual funds that TDFs hold. (3) The results show that TDFs: (3a) often invest in specialized assets (e.g., emerging markets and real estate); (3b) charge fees that are only modestly higher than if an individual investor assembled a similar portfolio on his own; (3c) and earn returns that are broadly in line with other mutual funds.

Title
Target date funds: What's under the hood?
Author
Elton, Edwin J.
Gruber, Martin J.
de Souza, Andre
Blake, Christopher R.
Center
Center for Retirement Research
Genre
report
Date Issued
January 2017
Publisher
Center for Retirement Research at Boston College
Series Title
Issue in Brief
Series Number
17-2
Persistent Link
http://hdl.handle.net/2345/bc-ir:107289
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing Retirement

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