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iShares Launches 2 New Target-Date ETFs

iShares, the world’s-biggest ETF company, rolled out two additional target-date exchange-traded funds, bringing to nine the number of iShares fund-of-funds ETFs that are organized around a specific retirement date.

The two new funds, the iShares S&P Target Date 2045 Index Fund (NYSEArca:TZW) and the iShares S&P Target Date 2050 Index Fund (NYSEArca:TZY), both come with a net annual expense ratio—after acquired fees and expenses and after fee waivers—of 0.32 percent, the company said on its website.

Like the rest of the target-date funds in the iShares lineup, the new funds are built out of different ETFs sponsored by the San Francisco-based firm. Target-date funds are designed so that asset allocations shift over time away from equities to make way for more fixed-income holdings as the targeted retirement date nears.

For example, TZY, the fund that targets 2050 as the retirement date, has a fixed-income allocation of around 8.5 percent, whereas almost 60 percent of the iShares S&P Target Date 2010 Index Fund (NYSEArca:TZD) is allocated to fixed-income holdings, according to the company’s website.

Including TZD, the seven other target-date ETFs iShares is already marketing and their net expense ratios are:

  • iShares S&P Target Date 2010 Index Fund (NYSEArca:TZD), 0.29 percent
  • iShares S&P Target Date 2015 Index Fund (NYSEArca:TZE), 0.29 percent
  • iShares S&P Target Date 2020 Index Fund (NYSEArca:TZG), 0.29 percent
  • iShares S&P Target Date 2025 Index Fund (NYSEArca:TZI), 0.29 percent
  • iShares S&P Target Date 2030 Index Fund (NYSEArca:TZL), 0.30 percent
  • iShares S&P Target Date 2035 Index Fund (NYSEArca:TZO), 0.29 percent
  • iShares S&P Target Date 2040 Index Fund (NYSEArca:TZV), 0.30 percent

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The company also markets the iShares S&P Target Date Retirement Income Index Fund (NYSEArca:TGR), an ETF that was launched in November 2008 that has almost three-quarters of its holdings in fixed income. TGR comes with an annual net expense ratio of 0.29 percent.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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