PowerShares exchange traded funds (ETFs) have joined forces with AIM target-date funds in an actively managed portfolio. They are called Aim Independence Funds and are designed for investors to use upon retirement. Expense ratios differ from fund to fund and some change as the target date grows distant.
Analysts say the blend shows AIM is putting its distribution muscle behind its sister company, PowerShares, and this could help AIM get a competitive edge over others because PowerShares has a wide range of ETFs, reports Tom Leswing on Ignites. This will also allow greater diversification over target-date funds that don’t use ETFs. The opposing view is citing the use of ETFs as a mixed message to investors over the merits of active management.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.