I like to watch all kinds of commentators on all sorts or topics. This week MOST, not just a few, of them started actively practicing a new trend, the "SO" trend. I think it is HIDEOUS!
Just take a look at this interview from Morningstar, a respected investment source. I'm not picking on them. Everyone is jumping into this new trend. I won't be joining them. I think it sounds, like, really ignorant. [that last sentence is intended as a joke, of course, in case anyone wondered.]
Christine, thanks for being here.
Christine Benz: Adam, great to be here.
Zoll: So, the fund company in question is Fidelity. They've decided to change their allocation to stocks in their target-date series. What can you tell us about the changes and how it compares to other fund companies' target-date series?
Benz: In some respects, Adam, Fidelity is really bringing its equity weightings in line with some of the other big shops. So, T. Rowe Price, for example, that's one of Morningstar's favorite target-date series providers, has long had a pretty heavy equity allocation relative to other target-date funds. Vanguard has historically been somewhere in the middle, but Fidelity's funds have been a little bit equity-light.
So, in the Fidelity 2020 Fund, for example, they will take the equity weighting up from 53% currently to 61% currently.
Zoll: So is this change just about keeping up with the other target-date series, or is there something else underlying that?