XTF Launches ETF Lifecycle Family

A new fund offering looks to capitalize on two emerging industry trends — lifecycle offerings and exchange-traded offerings.

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.

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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.

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