Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Economy

bucolic_frolic

(51,485 posts)

2. If indexing is the best return you can expect, why have Target Date funds??

Reply to mahatmakanejeeves (Original post)

Sat Jan 18, 2025, 11:38 AM

Jan 2025

Yeah, I know. % of bonds is the target date idea. Stay safe. 4% is the best you can do.

Most actively managed funds lag indexing. But some do better. Most large cap funds own the same Magnificent 7 stocks. So do tech funds, USA funds, growth funds, quant funds. This is not diversification. It's concentration. Read annual reports. Look at the fund managers, where they went to school, how they pursue alpha. Some fund companies do nothing but contract out for fund managers and you never find out about them. It's not investing. It's warehousing. Your money.

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

2 replies

= new reply since forum marked as read

Highlight:

Vanguard to pay more than $100 million to SEC over violations involving target date retirement funds [View all] mahatmakanejeeves Jan 2025 OP

I'm guessing that will disappear in a few days. yourout Jan 2025 #1

If indexing is the best return you can expect, why have Target Date funds?? bucolic_frolic Jan 2025 #2