NEW YORK ( TheStreet) -- Folio Investing, an online broker, has been crowing about its target-date retirement portfolios. Folio says that most of its portfolios have outperformed competitors by wide margins. According to Morningstar, the average 2020 target-date mutual fund returned 1.3% annually during the past three years. In comparison, Folio says that its conservative 2020 portfolio returned 3.4%. Folio attributes the success to a bold strategy that ignores traditional rules for diversification and asset allocation.The Folio investments are not mutual funds. Instead, they are baskets of ETFs. To invest in one of the Folio target-date portfolios, you must open a brokerage account at the company. Retail investors can maintain an account for a flat annual fee of $290.
Folio's Non-Traditional Diversification in Focus
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