The Wall Street Journal‘s John Spence is reporting that the ETF industry is stepping up efforts to challenge the mutual-fund industry’s lock on lucrative 401(k) retirement plans.
In the article ETFs Make a Play for 401(k) Market, Spence points out that Barclays Global Investors recently introduced a suite of target-date funds which are popular in employee-retirement plans. These funds are designed to automatically rebalance allocations between stocks and bonds as workers approach retirement.
The new Barclays ETFs include the iShares S&P Target Date Retirement Income Index Fund (TGR), iShares S&P Target Date 2010 Index Fund (TZD) and others.
Already in the market are a set of target-date funds from TDX Independence including the , (TDD)TDX Independence 2020 ETF (TDH), TDX Independence 2030 ETF (TDN), TDX Independence 2040 ETF (TDV) and TDX Independence In-Target ETF (TDX).