Most 401(k) savers may be short-changing themselves, data shows

401(k) savers in target date funds may be giving up returns, with the article arguing that low-cost index funds tracking benchmarks like the S&P 500 could be a better alternative. The piece is a strategic asset-allocation comment rather than a market event, so the near-term price impact is limited. The message is mildly negative for target date fund strategies and favors passive index exposure.

Analysis

401(k) savers in target date funds may be giving up returns, with the article arguing that low-cost index funds tracking benchmarks like the S&P 500 could be a better alternative. The piece is a strategic asset-allocation comment rather than a market event, so the near-term price impact is limited. The message is mildly negative for target date fund strategies and favors passive index exposure.