Nasdaq ETF fund target date funds: Target date funds
By now you’ve probably heard that American Funds will be the first publicly traded ETF target date fund.
The fund, which launched on December 9, will track a broad range of companies, with an initial target date of March 15, 2019.
While the target date is an interesting one, it’s not the only reason the fund is an attractive investment for investors.
It’s the only fund in the target market, according to the Morningstar ratings service.
For a fund that’s not publicly traded, the fund’s investors may be able to hedge against the expected rise in stock prices with a fee-based investment.
If you don’t mind paying more for your investment, American Funds also has a fee of 0.15%.
If you want to avoid paying any fees, however, the target is $30,000.
Americans Funds target date investments will be offered in the US market and the UK market, but it’s unclear when American Funds ETF will debut in those markets.
This is the first public target date for an ETF target dates, which is something we haven’t seen in a long time.
Since ETFs are publicly traded products, investors in these markets will likely see an increase in demand from those investors.
Target dates were introduced in the early 2000s, and many of the funds tracked target date markets.
The earliest fund to reach the target dates was Vanguard’s American Funds Target Date Fund, which was introduced in 2003.
In 2013, Target dates were reintroduced in the UK, where Target dates have been in place since 2005.
American Funds has an annual fee of $4.70, and it’s also available in the Vanguard Total Stock Market fund, a fund with a target date that’s slated for October 2021.