A new fund offering looks to capitalize on two emerging industry trends – lifecycle offerings and exchange-traded offerings.
XTF, an investment company specializing in building, managing and trading diversified exchange traded funds-based portfolios, has announced the availability of six Target Maturity Portfolios (TMPs) that is says are designed to help manage market risk and returns for the long-term investor.
The TMPs offer investors diversified ETF portfolios of equities, bonds and real estate that rebalance and adjust over time based on market and economic conditions, as well as time-to-maturity. The TMPs can be purchased in separately-managed accounts, through financial advisors or integrated into a variety of retirement options including 401(k) plans. XTF says that its ETF TMPs provide a “simplified option for retirement investing with transparent, broad-based diversification and lower management fees than many traditional mutual funds.’
The launch mirrors a series of recent ETF launch initiatives at Seligman, Two Rivers Capital Management, Sharebuilder, and 401kDesign.
The XTF TMPs include:
- XTF Target Maturity 2030+: For investors with a stronger tolerance for risk and longer time horizon, such as younger investors, this portfolio is designed to provide maximum capital appreciation, currently investing 100% of the portfolio in equity ETFs.
- XTF Target Maturity 2025: For investors who plan to retire in or near 2025, this portfolio aims to blend capital appreciation with wealth preservation, currently targeting an investment mix of 90% equity ETFs, 10% fixed income ETFs and becoming progressively more conservative as it nears its target maturity date.
- XTF Target Maturity 2020: For mid-career investors, this portfolio is more conservative than the two portfolios above, currently consisting of 82.5% equity ETFs and 17.5% fixed-income ETFs.
- XTF Target Maturity 2015: For mid-career investors who intend to use their investment to fund retirement in or around 2015, this portfolio is currently invested 75% in equity ETFs and 25% in fixed-income ETFs.
- XTF Target Maturity 2010: For investors nearing retirement age, this portfolio is designed to continue generating capital appreciation through 60% holdings in equity ETFs but also focuses on wealth preservation with 40% fixed-income ETFs and will rebalance to approximately 50% in fixed income ETFs and 50% in equity ETFs by 2010.
- XTF Target Maturity 2005 (The Present): For current retirees who want to stay fully invested yet seek current income, this portfolio’s target asset allocation is 50% equity ETFs and 50% fixed income ETFs.
XTF LP is based in New York, and was founded in 2000.
More information can be found at www.xtf.com.