My company just announced that our 401k is moving its existing high cost Fido target date funds to low cost (.11ER) Vanguard Target Date Retirement Trusts. These are commingled funds, not mutual funds - thus their price can't be tracked by a ticker symbol. These are the funds (TSM, TISM, TBM, TIBM) and percentages that each trust holds:
https://institutional.vanguard.com/VGAp ... undId=1471
Now, if someone already invests in the Fido target date funds, then this is a great deal! They are also adding a $15 per quarter fee. For those not holding the target dates (or some other actively managed funds which were replaced with lower cost Vanguard actively managed funds), it means our fees are going up. Albeit by not all that much if you account has a high balance.
I currently hold this in my 401k:
Code: Select all
PIMCO Total Return Fund Institutional Class PTTRX (ER 0.46) 50.36%
Fidelity Spartan 500 Index Fund Institutional Class FXSIX (ER 0.04) 32.57%
Vanguard International Value Fund Investor Shares VTRIX (ER 0.41) 17.07%
Would it be worth buying one of these target date trusts, with the idea of using it as a way to hold TBM? I don't really care about Total International Bond Market Index. It seems I could use of these funds (maybe 2010 or Income) and then hold additional of the above funds as needed and rebalance as needed. The BIG downside is that tracking these commingled funds without tickers will be a pain. I do everything by spreadsheet. Having my 529 (which is small) without symbols is fine. Having one of my largest accounts/holdings without a symbol will suck.
Any folks have any experience working with these types of investments?