A few industry experts praise parts of the SEC’s proposed rules, commenting that the changes for advertising and enhanced disclosure in TDFs are a step in the right direction. Furthermore, the proposal to include the ending asset allocation in the fund is also a prudent move, since investors would know when a fund reaches its most conservative investing mix.
However, there are those who believe the SEC didn’t act forcefully enough, even suggesting that the SEC should prohibit providers from using the phrase “target date” in a fund name.
For more information on target-date funds, visit our target-date ETFs category.
Max Chen contributed to this article.