Products October 2, 2007

Amerivest, XShares Launch Lifecycle ETFs

Amerivest Investment Management, LLC, a subsidiary of TD AMERITRADE Holding Corporation, has announced a partnership with XShares Advisors LLC to launch TDAX Funds, Inc. – an exchange-traded funds (ETFs) portfolio.
Reported by

The target-date funds begin by focusing on asset growth through a higher weighting to stocks and shift to capital preservation over time through historically less-risky allocations. A press announcement said the funds seek to replicate certain lifecycle indexes created by Zacks Investment Research (See Zacks Launches Securities-Based Lifecycle Indexes).

There are five TDAX Independence ETFs available, each with strategies defined by an investment horizon and target date.

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Those with a specific withdrawal date in mind can select:

  • TDAX Independence In-Target ETF
  • TDAX Independence 2010 ETF
  • TDAX Independence 2020 ETF
  • TDAX Independence 2030 ETF
  • TDAX Independence 2040 ETF

More information is at www.tdaxshares.com.

The Markets October 2, 2007

Zacks Launches Securities-Based Lifecycle Indexes

Zacks Investment Research, Inc. has launched a lifecycle index series, which includes four target retirement dates.
Reported by

A securities-based lifecycle program reduces plan sponsor exposure to lawsuits because it complies with the new Pension Protection Act regulations at the highest levels, according to Zacks.

The company says the lifecycle funds have no conflicts-of-interest or fee layering from sub-sector exchange-traded funds or proprietary mutual funds.

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The series includes the following indexes:

  • Zacks 2040 Lifecycle Index
  • Zacks 2030 Lifecycle Index
  • Zacks 2020 Lifecycle Index
  • Zacks 2010 Lifecycle Index
  • Zacks At Target Lifecycle Index

“The industry average allocation to equities in 2010 funds is 52%. That may be the right answer for a Monte Carlo simulation but the wrong one for investors with three years to go before they fund a retirement annuity, a vacation home, education, a wedding, or long-term medical care,” said Michael Case Smith of Zacks Index and Allocation Group, in a press release. “As target dates near, people care more about return of capital than return on capital, regardless of what computer models say.”

The indexes are being used in a partnership between Amerivest Investment Management, LLC and XShares Advisors LLC for their exchange-traded fund lifecycle portfolios: TDAX Funds, Inc. (See Amerivest, XShares Launch Lifecycle ETFs).

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