Lipper Inc. announced this week they created a family of target-risk fund benchmarks made up solely of exchange traded funds (ETFs). The five new indexes are risk based tools made up of ETFs whose returns, correlations, liquidity and expenses are studied to identify the mix of the five levels of increasing risk, and return benchmarks, reports David Hoffman for InvestmentNews. The new indexes will both name the ETFs that fit certain risk profiles and serve as a benchmark for clients at various stages of the retirement game. The indexes are:

  • Lipper Optimal Aggressive Growth Index
  • Lipper Optimal Growth Index
  • Lipper Optimal Moderate Index
  • Lipper Optimal Conservative Index
  • Lipper Optimal Very Conservative Index

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