Good discussion for those seeking a rebalance idea. I have my Scottrade Dividend Reinvestment Plan (FRIP) directing my dividends to TZY. Pretty slick.
That FRIP is a pretty cool idea. I have my Roth IRA with Scottrade so I was going to set that up soon for the new year.
I just did a lot of research on target date funds to see how ours compared. My takeaway is that if you’re young and just looking for a high stock allocation with low fees, Vanguard really can’t be beat.
Most of the differences come down to the glidepath and the allocation as you near the target date. Some funds keep tapering equity exposure long after retirement. I read about a few 2010-2015 funds with 80% equity exposure in 2008-2009. Lost 50%. Ouch.
Also, in my opinion, less is more. There is no reason for a target date fund to hold 20 mutual funds. I do not need a 1.1% allocation to distressed real estate loans in my retirement fund. A lot of companies just throw assets into crappy mutual funds that would likely close otherwise.
Personally I’m a fan of cheap ETFs with some rare tactical shifts. Cheap and you’re in the driver’s seat.
Some firms also use their TD funds to incubate new funds. That’s not cool.
So much for that…
Recently, the Board of Trustees of the iShares Trust voted to close and liquidate the Fund. Trading will be halted prior to market open on October 15, 2014. Proceeds of the liquidation are currently scheduled to be sent to shareholders on or around October 21, 2014. For more information, please see the Prospectus Supplement.