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Target date funds aren’t index funds, and have higher fees.
by newfoundglory 9y ago
Target date funds aren’t index funds, and have higher fees.
- nostrademons 9y agoFor all intents and purposes they're the same. My Vanguard Target Retirement 401k charges 0.05% and invests in Vanguard index funds for Total Stock Market, Total International Stock Market, Total Bond Market, and Total International Bond Market. My Vanguard S&P 500 fund charges 0.04% and my Total International Stock Market charges 0.11%. (For comparison, typical actively-managed funds charge about a percent.) In many cases you may actually pay less in fees because you can get Institutional shares instead of Individual ones.