Target Outcome ETF's

[rbs]

I haven't used target outcome etf's up to this point, but being old, I am starting to give consideration to that option in order to take some risk off and park some funds there ... curious as to the thoughts that others may have or have had with these investment tools.

 

[Johnnie Africa]

I mean put simply the closer you are to target the more it switches stocks to bonds automatically for you to mitigate risk. It’s just a passive no cost way to do it instead of withdrawing funds manually for a fee and then placing back into bonds for those that don’t want to expose themselves to the ups and downs of the market.

 

[Tskware]

I had the opportunity to use them a number of years ago in our 401K, but never was impressed with the return. I decided to hire a CFA and have done very well. Honestly think you are about as good in an index fund plus some CDs or bonds instead of a Target date fund.

But I am not an investment advisor, so could be wrong.

 

[rbs]

... the one I have looked at, all it does is invest in the index and hedge with puts to provide a 15% downside protection while limiting the upside to 12%. It's kind of like an annuity in that regard.