Hello, Login
X

Forgot Password?

Join Us

to start. Not a member? Join Today!
LinkedIn Join us on
Investment Management Information
“Bridging the theory & practice of investment management”
Email
Advanced Search →
  • Home
  • Journal
    • About
    • Subscribe to the Journal
      • Subscriptions
      • Library Subscriptions
    • Harry M. Markowitz Award
    • Submit a Paper
      • Article Guidelines
      • Practitioner’s Guidelines
    • Reprints & Permissions
    • Advertising
  • Conferences
    • JOIM Conference Events
    • About
    • Membership
    • Board Members
    • Sponsorship
  • Library Access
  • Contact
  • Help

0 comments / 07/11/2017 / the JOIM / Archives, Articles

The Impact of Costs on Recent Target Date Fund Performance

Volume 15, Number 4, 2017
C. Edward Chang, Thomas M. Krueger and Mark A. Wrolstad

Target date funds (TDFs) are rapidly becoming a common means to prepare for retirement. Given the swelling demand for these funds, this research is a timely look at TDFs’ most recent decade. As of March 2016, 518 TDFs have been in existence for over ten years, providing a good sample period by which to assess their performance. Analysis of the entire universe of TDFs with ten years of data reveals that a significant factor in differentiating between better and worse TDF investment performance is their expenses and loads. Among the TDFs with the lowest 25% of expenses, we find significantly better returns without an appreciable impact on standard deviation of returns or beta. Selecting TDFs without loads increases both returns and risk measures. Risk-adjusted returns using standard deviation, negative return variance, or beta all demonstrate the value of avoiding high expenses and load/commission fees.

0 comments… add one
Cancel reply

Leave a Comment

Next Article: Pricing for Survival in the Biopharma Industry: A Case Study of Acthar Gel and Questcor Pharmaceuticals

Previous Article: Investment Horizon Risk and Volatility Metrics

JOIM

    Library Access

    Subscribe to the Journal
    Submit a Paper
    Harry M. Markowitz Award
    Editorial Board
    Upcoming Conferences

    Edit Profile

Recent Comments

    JOIM

      About the JOIM
    • Library Access
    • Subscribe to the Journal
    • Submit a Paper
    • Editorial Board
    • Harry M. Markowitz Award
    • Reprints & Permissions
    • Advertising
    • Terms and Conditions

    JOIM Conference Series

    • About
    • Upcoming Conferences
    • Membership
    • Board Members
    • Sponsorship Opportunities
    • Terms & Conditions
    Speaker Reimbursement Policy

    Contact

    Journal Of Investment Management (JOIM)
    3658 Mt. Diablo Blvd., Suite 200
    Lafayette, CA 94549
    www.joim.com

    customerservice @ joim.com
    (925) 299-7800

    Copyright 2019 — Journal Of Investment Management design by SEO Web Designers