Federated Investors (FII) launched three target maturity mutual funds, which invest primarily in exchange-traded funds. The funds are aimed to provide a low-cost option for retirement plans, such as defined contribution plans and IRA accounts. The funds are:
- Federated Target ETF Fund 2015,
- Federated Target ETF Fund 2025
- Federated Target ETF Fund 2035.
Investments will consist of equity, fixed income, domestic and international markets. The funds will use a blended benchmark of S&P 1500, Lehman Aggregate Bond and MSCI-EAFE.
With this move, Federated is offering an option to investors to use ETFs in their retirement plans, as well as jumping into the fast growing ETF market.
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