The new lifecycle exchange traded funds (ETFs), also known as target-date ETFs, recently received some good news. In the next five years, target-date and target-risk funds are predicted to pull in $920 billion in new money, according to a Barron’s report. The report also predicts that there will be more clients relying on a single firm to design and implement an investment plan, and there will be more strategies designed to generate income for retirees, reports InvestmentWires.
ETFs likely to benefit from this include the new line of TDAX target-date ETFs launched by XShares and TD Ameritrade. Aside from the target-date funds, the ETF industry has tried other methods to break into the retirement industry. BenefitStreet and Barclays struck a deal to distribute ETFs to corporate sponsors. WisdomTree also recently jumped into the retirement market.
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.