Barclays is planning to launch a family of target-date and target-risk exchange-traded funds, drawing from its existing iShares, Dow Jones reports. The percentage of equity holdings will range from 91% to 58%.
The firm expects that the funds-of-funds, which will overcome the traditional obstacles of ETF structures in 401(k)s, will catch on in the plans, said a spokeswoman. Barclays is also willing to promote the funds over a period of years until they catch on.
The retirement market does not move quickly. It took target-date funds 10 years to catch on, she said.