- A Broader, More Robust Diversification Strategy. Many target-date funds' returns are, effectively, simply a blend of a U.S. bond index and a U.S. equity index fund, such as the S&P500. When the stock market is especially volatile though, such a portfolio is also still volatile. Target Date Folios are far more diversified, including not just U.S. stocks and bonds, but also commodities, REITs, Treasury Inflation Protected Securities (TIPS) and other asset classes. Theoretically, the result should be lower volatility and higher returns at any given risk level. And, that's what Folio Investing's Target Date Folios have proven over the last five years.
- Greater Choice and Customization. Target Date Folios come in conservative, moderate and aggressive risk levels for each target year, and uniquely can be further customized by investors or advisors as they see fit. That allows the Target Date Folios to be a much better match to an investor's needs than can be provided by any "one-size-fits-all" fund.
- Intelligent Risk Targeting, Not Simple Asset Allocation. Target Date Folios target specific risk levels over time. By contrast, target-date funds traditionally target specific asset allocations over time. But when market conditions change adversely, clinging to defined asset allocations means investors are exposed to far more risk than expected. Target Date Folios, instead, use a changing asset allocation as the means to achieving targeted risk levels, as opposed to the asset allocation being the end itself.
Folio Investing Celebrates Its Target Date Folios' Five-Year Record Of Outperformance
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