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| Target Date Mutual Funds |
One of the popular balanced mutual fund sectors is target date mutual fund. It is also known as lifecycle fund or asset allocation fund. It invests in stocks, bonds, and money market. Typically it invests in other funds from the fund family.
These funds can be categorized into various classes such as retirement income, target date 2000-2010, target date 2011-2015, target date 2016-2020, target date 2050+, etc. The asset allocation is adjusted based on the target date of the fund objective.
The following top funds are sorted based on its long term performance, expense ratio, annual holdings turnover rate, management, etc. More fund details can be found below such as sales load, expense fee, top holdings, top sectors, worst performance, etc.
Best Target Date 2000-2010 Mutual Funds of 2012 are:
- Vanguard Target Retirement 2010 Inv (VTENX)
- T. Rowe Price Retirement 2005 (TRRFX)
- Fidelity Freedom 2010 (FFFCX)
- American Funds Target Date Retirement 2010 A (AAATX)
- T. Rowe Price Retirement 2010 (TRRAX)
- GuideStone Funds MyDestination 2005 GS4 (GMIZX)
- MFS Lifetime 2010 A (MFSAX)
- Fidelity Freedom 2005 (FFFVX)
- Wells Fargo Advantage DJ Target 2010 Inv (WFCTX)
- Fidelity Freedom 2000 (FFFBX)
updated on 8/6/2012
1. Vanguard Target Retirement 2010 Inv (VTENX)The investment objective of Vanguard Target Retirement 2010 fund is to provide income and capital growth with its asset allocation. This balanced fund is suitable for investors planning to retire within a few years of 2010. Duane F. Kelly is the fund manager since 2006. The dividend yield is 2.52%. It has $5.8 billion of assets. Its expense ratio is only 0.17% per year.
Morningstar has ranked this hybrid fund with 4 stars and gold rating. It has a 5 year annualized return of 3.79%. The top 4 holdings are Vanguard Total Bond Market II Index, Vanguard Total Stock Market Index, Vanguard Total International Stock Index, and Vanguard Inflation-Protected Securities.
2. T. Rowe Price Retirement 2005 (MUTF: TRRFX)
T. Rowe Price Retirement 2005 fund utilizes its assets to purchase a diversified portfolio of other T. Rowe Price stock and bond funds from various asset classes and sectors. It has 0.58% expense ratio. The annual portfolio turnover rate is 17.5%. There is no sales load.
MORE: Best No Load Retirement Income Mutual Funds
Ranked with gold rating, this best target date fund has returned 9.96% over the past 3 year, and 3.77% over the past 5 year. You can buy this mutual fund with $2,500 initial funding from various brokerages. The 3 year beta risk is 0.88.
3. Fidelity Freedom 2010 (Ticker: FFFCX)
This Fidelity Freedom 2010 fund uses its assets to buy a mix of Fidelity funds such as domestic equity funds, international equity funds, bond funds, and short-term funds, using a moderate asset allocation strategy. Chris Sharpe and Andrew Diedorf are the fund managers. This fund has a yield of 1.88%. Its expense ratio is 0.59% per year.
This target date 2000-2010 fund is ranked with 4 stars rating. It has Sharpe ratio of 1.09. The year to date return is 6.71%. The top 5 sectors are technology, financial services, consumer cyclical, healthcare, and consumer defensive.
4. American Funds Target Date Retirement 2010 A (AAATX)
American Funds Target Date Retirement 2010 fund aim is to provide growth, income and capital preservation. It invests mainly in bond, equity-income, and balanced funds using mix of American funds. It has a yield of 2.93%. It has a front end sales load of 5.75%. The portfolio turnover rate is 19%.
This fund of funds has a 3 year average return of 10.34%. The top 5 holdings are American Funds Bond Fund of America, American Funds Mortgage, American Funds Intermediate Bond Fund of America, American Funds Capital Income Builder, and American Funds Income Fund of America.
5. T. Rowe Price Retirement 2010 (TRRAX)
T. Rowe Price Retirement 2010 fund utilizes its assets to purchase a diversified portfolio of other T. Rowe Price mutual funds such as stock and bond funds. It is managed by Jerome A. Clark since 2002. The total net assets are $5.6 billion. Its yield is 2.32%. The investment style is large blend.
Previous: Top Performer Target Date Mutual Funds of 2011
This gold rated target date mutual fund has returned 10.64% over the past 3 year, and 3.2% over the past 5 year.
Disclosure: No Position
Fund Performance
| No | Fund Description | Ticker | Expenses | YTD | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|---|---|---|---|
| 1 | Vanguard Target Retirement 2010 Inv | VTENX | Below Average | 5.75 | 4.09 | 10.74 | 3.12 | -- |
| 2 | T. Rowe Price Retirement 2005 | TRRFX | Average | 5.9 | 2.54 | 10.36 | 3.04 | -- |
| 3 | Fidelity Freedom 2010 | FFFCX | Average | 6.1 | 1.31 | 10.17 | 1.97 | 5.98 |
| 4 | American Funds Trgt Date Ret 2010 A | AAATX | Average | 5.79 | 4.74 | 10.73 | 1.3 | -- |
| 5 | T. Rowe Price Retirement 2010 | TRRAX | Above Average | 6.32 | 1.86 | 11.1 | 2.29 | -- |
| 6 | GuideStone Funds MyDestination 2005 GS4 | GMIZX | Below Average | 5.31 | 3.2 | 10.25 | 2.59 | -- |
| 7 | MFS Lifetime 2010 A | MFSAX | Low | 5.09 | 3.99 | 9.48 | 4.95 | -- |
| 8 | Fidelity Freedom 2005 | FFFVX | Average | 5.32 | 1.47 | 9.45 | 1.71 | -- |
| 9 | Wells Fargo Advantage DJ Target 2010 Inv | WFCTX | Below Average | 3.44 | 3.14 | 7.61 | 3.77 | -- |
| 10 | Fidelity Freedom 2000 | FFFBX | Low | 4.04 | 2.6 | 7.55 | 2.91 | 4.68 |
| 11 | JPMorgan SmartRetirement 2010 A | JSWAX | Below Average | 5.41 | 2.54 | 10 | 2.65 | -- |
| 12 | Hartford Target Retirement 2010 A | HTTAX | Above Average | 5.45 | 1.24 | 10.9 | 2.31 | -- |
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