Ian Salisbury introduces Barclay’s new target-date ETFs in his recent Wall Street Journal article, “Barclays Plans Family of Target-Date ETFs”.
In an attempt to popularize mom-and-pop investors saving for retirement, Barclays is planning to introduce a family of target-date and target-risk iShares ETFs.
Target-date and target-risk have become popular among individual investors of mutual funds. However, many experts regard these strategies as ill-suited for ETFs because the trading fees may become too expensive for investors who invest small amounts frequently. This type of frequent trading is the strategy retirement plans encourage.
Barclay’s eight proposed ETFs will hold a mix of iShares stock and bond ETFs. The fund are designed to shift their holdings from aggressive to conservative strategies as the target date approaches.
To see an example of an existing Target Date ETF, check out TDX Independence 2020 ETF (TDH).