ETF of the Week: Target Date Mutual Funds and ETFs

ETF Trends CEO Tom Lydon discussed target date mutual funds and ETFs on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show. The whole idea is that target date mutual funds and ETFs make it easy for the investor. It just involves picking the date that is thought to be a retiring date in the future, which tends to be rolling every five-year period. The fund company would then allocate within that ETF or mutual fund a stock and bond mix that would decrease equity holdings and increased fixed income holdings over time.