Target Date Funds
Target date mutual funds are popular among any investors. Whether you have a 401k plan, individual retirement account (IRA), or regular investment account; you will find the target date mutual funds for your choice. These funds are suitable for passive investors that want to balance between stocks & bonds. These funds will adjust their assets based on your retirement year target.For example, a younger worker hoping to retire in 2040 would choose a target-date 2040 fund, while an older worker hoping to retire in 2020 would choose a target-date 2020 fund. Because it has a longer time horizon, the 2040 fund would likely be weighted heavily toward stocks, with a relatively small percentage of bonds and cash equivalents, while the 2020 fund would hold relatively more bonds and cash equivalents and fewer stocks.
As part of asset allocation fund or balanced fund, these target date funds will seek income and growth for your investment. The investment risks may include interest rate risk, investment style risk, market risk, etc. These target date mutual funds are also known as lifecycle mutual funds.
Top Mutual Funds
These top performer target date mutual funds are sorted based on its 1 year total return. You may find other information such as expense ratio fee, portfolio turnover rate, management or index approach, performance, etc. You can find the fund review and comparison below.Best target date 2026-2030 mutual funds 2014 are:
- Manning & Napier Target 2030 K (MTPKX)
- American Funds 2030 Target Date Retire A (AAETX)
- T. Rowe Price Retirement 2030 (TRRCX)
- AllianceBernstein 2030 Retirement Strategy A (LTJAX)
- TIAA-CREF Lifecycle Index 2030 Institutional (TLHIX)
- Vanguard Target Retirement 2030 Investor (VTHRX)
- JHancock Retire Living through 2030 A (JLFAX)
- MassMutual RetireSMART 2030 A (MRYAX)
- MFS Lifetime 2030 A (MLTAX)
- Schwab Target 2030 (SWDRX)
- MainStay Retirement 2030 A (MRTTX)
- TIAA-CREF Lifecycle 2030 Institutional (TCRIX)
- Nationwide Destination 2030 A (NWIAX)
American Funds 2030 Target Date Retirement A (AAETX)
The objective of this American Funds 2030 Target Date Retire Fund is to seek to achieve the following objectives to varying degrees; growth, income and conservation of capital. The CUSIP is 02630T712. The minimum initial investment needed is $250. This fund is incepted in February 2007. It has total net assets of $3.4 billion. The annual expense ratio is 0.75%.More: Best Performing Retirement Income Mutual Funds 2013
Morningstar analysts rank the AAETX fund with 4-stars and Silver rating. In 2014, the YTD return is 2.34%. It uses Large Growth investment style. The best 1-year total return since the inception was in 2009 with 31.07%.
The top underlying fund allocations as of March 2014 are American Funds Growth Funds (38.6%), American Funds Growth-and-Income Funds (35.1%), American Funds Equity-Income/ Balanced Funds (20.1%) and American Funds Bond Funds (6.2%).
T. Rowe Price Retirement 2030 Fund (TRRCX)
The investment in this T. Rowe Price fund seeks the highest total return over time consistent with an emphasis on both capital growth and income. It has large net assets of $20.3 billion. The annual expense ratio is 0.75%. The fund’s dividend yield is 1.24% and the recent distribution was in December 2013 ($0.29).This target date 2026-2030 mutual fund uses Lipper Mixed-Asset Target 2030 Funds Average and S&P Target Date 2030 Index as the benchmark. It also has 5-stars and Gold rating from Morningstar. The fund has -0.40% YTD return. The fund has recorded 9 years of positive return and 2 years of negative return.
As of March 2014, this best mutual fund had a total of 18 holdings. The largest holdings are Emerging Markets Stock Fund, Equity Index 500 Fund, Growth Stock Fund and International Growth & Income Fund. The top asset allocation is Domestic Stock (52.9%).
Vanguard Target Retirement 2030 Investor (VTHRX)
This Vanguard Target Retirement 2030 fund has an annual expense ratio of 0.17%. Michael H. Buek, William Coleman and Walter Nejman are the current fund managers. It seeks to provide capital appreciation and current income consistent with its current asset allocation. The total net assets are $21.3 billion. It also has 1.74% dividend yield.
More: Vanguard Target Retirement Income Fund (VTINX)
This Vanguard Target Retirement 2030 Investor fund has 4-stars and Gold rating from Morningstar. It uses Large Blend investment style. Since the fund’s inception in 2006, its performance based on the load adjusted returns is:
- 1-year: 13.30%
- 3-year: 8.83%
- 5-year: 15.20%
Target Date 2026-2030 Funds Returns
| No | Fund Description | Ticker | Rating | Net Assets (mil) | Exp Ratio | Yield | YTD | 1-Yr | 3-Yr |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Manning & Napier Target 2030 K | MTPKX | 5 | $194.40 | 1.11% | 2.96% | 4.72% | 12.91% | 9.50% |
| 2 | American Funds 2030 Trgt Date Retire A | AAETX | 4 | $3,400.00 | 0.75% | 1.27% | 2.34% | 12.82% | 11.16% |
| 3 | T. Rowe Price Retirement 2030 | TRRCX | 5 | $20,300.00 | 0.75% | 1.24% | -0.40% | -0.11% | N/A |
| 4 | AllianceBern 2030 Retirement Strat A | LTJAX | 2 | $162.60 | 1.02% | 2.57% | 2.57% | 11.72% | 7.55% |
| 5 | TIAA-CREF Lifecycle Index 2030 Inst | TLHIX | 5 | $422.50 | 0.17% | 1.80% | 2.61% | 11.05% | 9.94% |
| 6 | Vanguard Target Retirement 2030 Inv | VTHRX | 4 | $21,300.00 | 0.17% | 1.74% | 2.64% | 10.91% | 9.62% |
| 7 | JHancock Retire Living through 2030 A | JLFAX | 3 | $1,300.00 | 1.33% | 1.91% | 2.01% | 10.83% | 8.54% |
| 8 | MassMutual RetireSMART 2030 A | MRYAX | 2 | $462.40 | 1.24% | 1.29% | 2.88% | 10.48% | 11.00% |
| 9 | MFS Lifetime 2030 A | MLTAX | 3 | $346.90 | 1.04% | 1.38% | 0.68% | 14.99% | 9.03% |
| 10 | Schwab Target 2030 | SWDRX | 4 | $681.50 | 0.74% | 1.68% | 1.88% | 6.83% | 6.08% |
| 11 | MainStay Retirement 2030 A | MRTTX | 2 | $166.90 | 1.08% | 1.35% | 2.45% | 10.40% | 9.23% |
| 12 | TIAA-CREF Lifecycle 2030 Instl | TCRIX | 4 | $2,300.00 | 0.45% | 3.56% | 6.76% | 40.52% | 20.32% |
| 13 | Nationwide Destination 2030 A | NWIAX | 2 | $279.00 | 0.92% | 1.24% | 2.23% | 9.90% | 8.67% |
No comments:
Post a Comment