NEW YORK--(BUSINESS WIRE)--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
|
iShares® LifePath® Target Date 2025 ETF |
0.09 |
|
iShares® LifePath® Target Date 2030 ETF |
0.09 |
|
iShares® LifePath® Target Date 2035 ETF |
0.10 |
|
iShares® LifePath® Target Date 2040 ETF |
0.11 |
|
iShares® LifePath® Target Date 2045 ETF |
0.11 |
|
iShares® LifePath® Target Date 2050 ETF |
0.11 |
|
iShares® LifePath® Target Date 2055 ETF |
0.11 |
|
iShares® LifePath® Target Date 2060 ETF |
0.11 |
|
iShares® LifePath® Target Date 2065 ETF |
0.11 |
|
iShares® LifePath® Retirement ETF |
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."
