Lipper launches target-risk ETFs

Lipper Inc. of New York announced today it has created a suite of target-risk fund benchmarks made up exclusively of exchange traded funds.
MAY 23, 2007
Lipper Inc. of New York announced today it has created a suite of target-risk fund benchmarks made up exclusively of exchange traded funds. The five new indexes are objective, risk-based tools comprised of ETFs whose historical returns, correlations, liquidity and expenses are analyzed to identify the appropriate mix of five levels of progressively increasing risk and return benchmarks. “It is essential that advisers not only keep on top of the proliferation of new products regularly introduced to the marketplace, but also align clients’ asset risk profile with their liabilities,” Andrew Clark, head of research for Americas said in the statement. “The [new indexes] will both name ETFs that fit specific risk profiles and serve as a benchmark for clients at various stages of the retirement horizon.” The indexes are the Lipper Optimal Aggressive Growth Index, Lipper Optimal Growth Index, Lipper Optimal Moderate Index, Lipper Optimal Conservative Index and Lipper Optimal Very Conservative Index.

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