Target Date ETFs Hit the Street

October 2, 2007

SAN DIEGO (ETFguide.com) - New York based-XShares Advisors has introduced 12 new exchange-traded funds (ETFs) on the NYSE Arca. 

Among the funds launched are a series of six equal-weighted ETFs known as Adelante Shares, which are designed to provide exposure to narrow slices of the U.S. real-estate market. Each ETF holds 25 securities, while the market cap weighted Composite Real Estate ETF holds 40 companies.

Each of the funds charges an annual expense ratio of 0.58 percent.

The remaining 5 ETFs are target date or lifestyle funds that range in maturities from 2010 to 2040.

Each fund’s approach is determined by its target withdrawal date. Funds with longer time horizons have higher initial equity exposure, including international equities, with greater volatility and risk. Funds with shorter time horizons have higher fixed income exposure, with lower volatility and risk.

Lifestyle mutual funds have been a success in 401(k)'s and similar retirement plans. The concept of lifestyle ETFs could catch on and open up a huge new base of investors in the retirement plan market.

The lifestyle ETFs track indexes designed by Zacks Investment Research and charge an annual expense ratio of 0.65 percent. The ETFs are a collaboration between TD Ameritrade and XShares Advisors. 

XShares is best known for its HealthShares ETFs which track narrow industry sectors within the healthcare field.

The upstart firm is competing for its share of the burgeoning ETF market against much larger rivals including Barclays Global Investors (BGI), PowerShares, State Street Global Advisors (SSgA), and the Vanguard Group.

• Adelante Shares RE Classics ETF (ACK) 

• Adelante Shares RE Composite ETF (ACB)

• Adelante Shares RE Growth ETF (AGV) 

• Adelante Shares RE Kings ETF (AKB) 

• Adelante Shares RE Shelter ETF (AQS)

• Adelante Shares RE Value ETF (AVU)

• Adelante Shares RE Plus Yield ETF (ATY)

• TDAX Independence 2010 ETF (TDD) 

• TDAX Independence 2020 ETF (TDH)

• TDAX Independence 2030 ETF (TDN)

• TDAX Independence 2040 ETF (TDV)

• TDAX Independence In-Target ETF (TDX)