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New class of robos lay siege to 'antiquated' target-date-funds (TDF) market; even defender of the 401(k) citadel, Vanguard, sees handwriting on the wall

Fidelity, Ascensus, and Morningstar are all making 401(k) moves that could see automated advice replace the Vanguard-dominated TDF market but maybe Vanguard just woke up in time to cannibalize the market itself.

Author Oisin Breen October 8, 2019 at 3:02 AM
Admin:
no description available
Rob Foregger: Moving beyond the target date fund ... that’s the vision ... they're now antiquated.

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March 25, 2023 at 1:32 AM

Biz Briefs: Schwab puts checks for $52 million in mail to robo-RIA customers allegedly misled about cash allocations • BlackRock blacklisted (again) • iShares beats NZAM-exiter Vanguard • Fidelity makes first acquisition in eight years • CFP board realizes Moms don't like CFPs

BlackRock gets Kentucky coal in stocking, and Vanguard keeps skating; iShares inches above -- by 2.8% -- Vanguard's annual net new ETF asset haul; Fidelity takes "natural next step" for stock plan business; new CFP chair outlines plans and the DOJ is set to become a major Robinhood shareholder..

January 13, 2023 at 3:01 AM

Dimensional Fund Advisors, long the flagship of factor investing, struggles to chart a course as a nimble rival and big foot competitors cut into its market--and exploit its slow move to ETFs

Vanguard, BlackRock and Avantis rattle a complacent Dimensional Fund Advisors with fee cuts and ETF roll outs based on 'smart beta.'

August 9, 2022 at 1:57 AM

Vanguard Group shows up as 'alpha' disciple with two new fixed-income fund launches as it surpasses PIMCO's $2 trillion with ex-Goldman Sachs partner now calling the shots

The $8 trillion Malvern, Pa. manager owns beta investing, but RIAs are demanding higher income -- hence market timing and cherry picking -- from their fixed-income allocation.

August 10, 2021 at 11:46 PM

See more related moves

Mentioned in this article:

Financial Engines
401k Plan Consultant

Morningstar, Inc.
TAMP
Top Executive: Joe Mansueto

Aite Group
Consulting Firm
Top Executive: Frank Rizza

Ascensus
Third Party Administrator
Top Executive: Bob Guillocheau

Betterment, LLC
Financial Planning Software
Top Executive: Jon Stein




Ron Surz

Ron Surz

October 8, 2019 — 2:32 PM
One-size-fits-all is a failed model for beneficiaries, but not so much for the Big3 TDF oligopoly. Personalized target date portfolios, rather than commingled mutual funds, address this problem, but in 401(k) land they are Managed Accounts, a not very popular QDIA choice. the other TDF problem will manifest soon. They've become riskier, and will harm beneficiaries in the next market decline. Older folks will suffer the most. Vanguard is savvy to cannibalize their own business because others will.
BRUCE

BRUCE

October 9, 2019 — 2:36 AM
Lots of handwaving, no data. If these unspecified tailorings were making a difference and not just noise to sound like the advisor was adding value, then we'd already see a migration to these services as advisors would be touting their great results. Robos will be great esp for the younger crowd as it fits how they like to do business but that is about it. My early 20s kids are rocking s&p500 index funds as TDFs seemed like such a silly idea given their long investment timelines.
Naverno

Naverno

October 9, 2019 — 3:21 AM
Robos? Maybe you should learn to use correct words first.
brooke

brooke

October 9, 2019 — 5:51 AM
'Robo' is the mots juste until the universe affords a better one. :)
Ron Surz

Ron Surz

October 9, 2019 — 3:24 PM
Oligopolies are only good for the oligarchs. One of the disadvantages for consumers is stymied innovation.
PB

PB

October 9, 2019 — 9:45 PM
This article was really clunky. It took you a lot of words to convey very little information. Write better.

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