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Introducing The TargetIncome Family

Aug. 01, 2018 3:02 PM ET
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On July 31st, the

Global X TargetIncome 5 ETF (TFIV) and the Global X TargetIncome Plus 2 ETF (TFLT) began trading on the CBOE. Both funds seek to achieve specific yield targets, net of fees, by allocating across 11 ETFs representing different income-paying asset classes.

It is estimated that 10,000 of the 74 million-strong baby boomer generation retires each day – a rate that is expected to continue steadily through 2030.i For many retirees, this day has been over 60 years in the making and carefully planned by contributing to retirement plans, building up a nest egg, and reducing major expenses. Yet despite how much planning may go in to retirement, many investors remain apprehensive about one of the most significant financial changes in their life: transitioning from accumulating assets through savings to depending on those assets to fund their living expenses.

Decades ago, this transition was less of a concern as two-thirds of all retirement assets were held by defined benefit (DB) plans.ii DB plans offer participants predictable income streams in retirement, with the plan sponsor assuming all of the investment risk. These days, DB plans make up less than one-third of retirement assets, as many former DB sponsors, particularly those in the private sector, have transitioned to defined contribution (DC) plans instead.

Source: Investment Company Institute, June 21, 2018.

In this transition away from DB plans, individual investors have assumed the risks related to their own retirement, from saving and growing assets during their working years, to generating income and ensuring the longevity of their portfolio during retirement.

In response to this shift in risk, many portfolio managers and advisors have changed their investment approach to focus on outcome-based or goals-based portfolios for their clients. These approaches seek to align the objective of a portfolio with the

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Founded in 2008, Global X is a sponsor of exchange-traded funds (ETFs). We are distinguished by our Thematic Growth, Income, and International ETFs. Explore our insights on the trends and themes shaping global markets – from technology to commodities to emerging economies – at globalxfunds.com/research. Global X ETFs is a member of the Mirae Asset Global Investments Group. Important disclosures: globalxfunds.com/privacy

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