Do you understand your target date fund?

An excellent article in The Wall Street Journal, A Hedge Fund Lurking in your 401(k) remarked how target date funds, often thought to be relatively easy to understand, are investing in increasingly complex ways.? While such investments can be beneficial - examples cited included less losses during a recent down market due to strategic shifts away from certain assets - the same strategies can be both more costly and more likely to under-perform during certain market conditions. Personally, it's another reason to consider index funds. What do you think?

View the original article here