Charles Schwab Launches Index Target-Date Funds
June 23, 2008
Charles Schwab Trust Co. is planning indexed target-date collective trust funds, the Schwab Indexed Retirement Trust Funds with target dates spanning 2010-2050, for retirement plans.
There is no minimum balance requirement for the Schwab Indexed Retirement Trust Funds, and there is an all-in operation expense ratio of 0.18%. Over time, the funds' portfolios are constructed in such a way that they become more conservative. That is, once the funds' are composed of 75% fixed-income allocations and 25% stock, no more changes occur.
(c) 2008 Money Management Executive and SourceMedia, Inc. All Rights Reserved.