ETF investors have a couple of options available from iShares and Deutsche Bank. The iShares line includes iShares Target Date 2020 ETF (NYSEArca: TZG), iShares Target Date 2030 ETF (NYSEArca: TZL), iShares Target Date 2040 ETF (NYSEArca: TZV) and iShares Target Date 2050 ETF (NYSEArca: TZY). Deutsche Bank offers db X-trackers 2020 Target Date Fund (NYSEArca: TDH), db X-trackers 2030 Target Date Fund (NYSEArca: TDN) and db X-trackers 2040 Target Date Fund (NYSEArca: TDV). [Target-Date ETFs That Fit Your Retirement Outlook]
Looking at the holdings, investors who are nearing their golden years will find their target-date ETFs show greater allocations toward bonds. TZG has a 37.9% allocation toward bonds and TDH includes 45.3% weight in bonds. On the other end of the spectrum, younger investors will be heavily exposed to stocks, with TZY including a 90.0% tilt and TDV showing a 93.0% weight toward equities.
The target-date funds “recognize that individuals are at very different phases of their lives, and invests them accordingly,” Jerome Clark, portfolio manager for T. Rowe Price’s target date products, said in the article.
For more information on target-maturity funds, visit our target-date ETFs category.