Launches industry’s only suite of Target Date
ETFs
New research reveals crisis in confidence among
workers without a retirement plan
Today, BlackRock has launched the industry’s only suite of
target date ETFs, providing millions of Americans with a simple,
affordable, and tax-efficient way to save and invest for
retirement. This solution is timely – 57 million Americans lack
access to a 401(k) or employer-sponsored retirement plan.1
“This product innovation will make saving for retirement even
more accessible at a time when Americans are less confident about
their retirement readiness than ever before,” said Anne
Ackerley, Head of Retirement at BlackRock. “With nearly 50% of
private sector workers unable to save through their employers, lack
of access to a retirement savings plan is one of the most pressing
challenges that needs to be addressed.2 The iShares® LifePath®
Target Date ETF Suite provides a new way for millions of Americans
to save and prepare for retirement, on their own terms.”
Addressing a Crisis in Retirement Confidence
The eighth annual BlackRock Read on Retirement™ report
shows that retirement confidence has dropped, with nearly 40% of
independent savers, or individuals who do not have access to a
retirement plan through their employers, feeling off track for
retirement. This marks a 23% increase since last year. In addition,
47% of independent savers are leaning on cash to build their
retirement nest eggs, missing out on potential investment growth
that could be important to achieving their retirement goals.
However, nearly half (45%) of these independent savers say that
having access to a financial professional or advice would help them
feel on track for retirement, and a large majority (71%) say they
would be interested in using a target date fund to save for
retirement.
“Over 30 million Americans trust and turn to iShares in the
search for new solutions and opportunities to meet their financial
ambitions,” said Dominik Rohe, Head of Americas ETF and Index
Investments business at BlackRock.3 “And we want even more
Americans to experience the benefits of our professional grade
investment solutions firsthand. The iShares LifePath Target Date
ETFs can help empower millions of people to build towards
retirement with the convenience and simplicity of a single iShares
ETF.”
A Transformational Savings Tool
Target date funds make investing for retirement simple.
Investors select the fund closest to their target retirement date
and make regular contributions. The funds are professionally
managed to provide diversification, automatic rebalancing, and risk
adjustment over time. At the target retirement date, the fund is
designed to roll into a retirement vintage with the goal of
enabling investors to maintain consistent spending through their
retirement.4
“Since pioneering the first target date fund 30 years ago,
BlackRock has continually transformed what it means to save for
retirement for over 40 million Americans, providing optimized
retirement income, emergency savings support, and more,” said
Nick Nefouse, CFA, Global Head of Retirement Solutions at
BlackRock.5 “With LifePath's investment approach now accessible
through the ETF structure, BlackRock is helping to lead the
industry in retirement innovation.”
The iShares LifePath Target Date ETFs invest in a broad
portfolio of underlying iShares ETFs and are designed to help
investors stay on the path to retirement by adjusting over time,
taking more risk early on, and gradually becoming more conservative
as the target retirement date approaches. At the target retirement
date, the ETFs are expected to transition into the iShares Target
Retirement ETF. This suite of funds can help investors in many
ways, including those who:
- Want to do more but don’t have access to a workplace retirement
plan.
- Are looking to bolster their planning by complementing an
existing 401(k).
- Want to roll out of a 401(k) plan into an IRA with a familiar,
time-tested strategy and investment choice.
Fund Name
Ticker
Fund Fees and Expenses (%)
iShares® LifePath® Target Date 2025
ETF
ITDA
0.09
iShares® LifePath® Target Date 2030
ETF
ITDB
0.09
iShares® LifePath® Target Date 2035
ETF
ITDC
0.10
iShares® LifePath® Target Date 2040
ETF
ITDD
0.11
iShares® LifePath® Target Date 2045
ETF
ITDE
0.11
iShares® LifePath® Target Date 2050
ETF
ITDF
0.11
iShares® LifePath® Target Date 2055
ETF
ITDG
0.11
iShares® LifePath® Target Date 2060
ETF
ITDH
0.11
iShares® LifePath® Target Date 2065
ETF
ITDI
0.11
iShares® LifePath® Retirement
ETF
IRTR
0.08
About The BlackRock Read on Retirement
The BlackRock Read on Retirement™ report provides insights from
a research study of over 450 large defined contribution plan
sponsors, 1,300 workplace retirement plan savers, 1,300 independent
savers and 300 retired workplace savers in the United States. The
survey is executed by Escalent, an independent research company.
Plan sponsors were interviewed using an online survey conducted
between March 21 and April 6, 2023, while all other respondents
were reached between April 24 and May 24, 2023.
About BlackRock
BlackRock’s purpose is to help more and more people experience
financial well-being. As a fiduciary to investors and a leading
provider of financial technology, we help millions of people build
savings that serve them throughout their lives by making investing
easier and more affordable. For additional information on
BlackRock, please visit www.blackrock.com/corporate | Twitter:
@blackrock | LinkedIn: www.linkedin.com/company/blackrock
About iShares
iShares unlocks opportunity across markets to meet the evolving
needs of investors. With more than twenty years of experience, a
global line-up of 1300+ exchange traded funds (ETFs) and $3.12
trillion in assets under management as of September 30, 2023,
iShares continues to drive progress for the financial industry.
iShares funds are powered by the expert portfolio and risk
management of BlackRock.
Carefully consider the Funds' investment objectives, risk
factors, and charges and expenses before investing. This and other
information can be found in the Funds' prospectuses or, if
available, the summary prospectuses which may be obtained by
visiting www.iShares.com or
www.blackrock.com. Read the prospectus carefully before
investing.
Investing involves risk, including possible loss of
principal.
Each target date fund has a number (a target date) at the end of
the name that designates an approximate year when an investor plans
to start withdrawing their money. The asset allocation of the fund
will become progressively more conservative as the specified target
date approaches. An investment in the fund is not guaranteed, and
an investor may experience losses, including near, at, or after the
target date. Investment in a fund of funds is subject to the risks
and expenses of the underlying funds. Actively managed funds do not
seek to replicate the performance of a specified index. Actively
managed funds may have higher portfolio turnover than index
funds.
The strategies discussed are strictly for illustrative and
educational purposes and are not a recommendation, offer or
solicitation to buy or sell any securities or to adopt any
investment strategy. There is no guarantee that any strategies
discussed will be effective. The information presented does not
take into consideration commissions, tax implications, or other
transactions costs, which may significantly affect the economic
consequences of a given strategy or investment decision.
Transactions in shares of ETFs may result in brokerage commissions
and may generate tax consequences. All regulated investment
companies are obliged to distribute portfolio gains to
shareholders.
The Funds are distributed by BlackRock Investments, LLC
(together with its affiliates, “BlackRock”).
© 2023 BlackRock, Inc. or its affiliates. All Rights Reserved.
BLACKROCK, LIFEPATH and iSHARES are trademarks of
BlackRock, Inc. or its affiliates. All other trademarks are those
of their respective owners.
1 AARP Public Policy Institute, Payroll Deduction Retirement
Programs Build Economic Security, 2022
2 AARP Public Policy Institute, Payroll Deduction Retirement
Programs Build Economic Security, 2022
3 Broadridge Financial Services (alternately referred to as
“ADC”). U.S. iShares investors estimated based on an empirical
analysis of aggregate brokerage accounts that hold iShares ETFs at
the ticker level, augmented by BlackRock Global Business
Intelligence assumptions regarding the number of tickers per
account, per user, and per household.
4 The amount available for retirement spending will depend on
factors such as time, contribution amounts, and fund performance.
An investment in a target date fund is not guaranteed, and an
investor may experience losses, including near, at, or after the
target date.
5 "Represents the estimated number of participants (active and
retired) with access to BlackRock investment products through their
US DC plan. Active participant data is sourced from Brightscope (as
of 12/31/20 or plan’s latest filed Form 5500), Census Annual Survey
and the Federal Government’s TSP November 2021 meeting notes.
Retiree participant data is estimated based BlackRock’s current AUM
market share of the US DC industry using data inputs sourced from
Census quick facts, CRS 2021 Report, and Cerulli “US Retirement End
Investor Report 2022."
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231019404974/en/
Media Paige Hofman
Paige.hofman@blackrock.com 212-810-3368 Thomasin Bentley
Thomasin.bentley@blackrock.com 646-231-1769
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