Shaking The Nest Egg: Using Scenario Analysis to Choose The Right Target-Date Fund

In this post, our research team demonstrates how scenario analysis can highlight different risk sensitivities among same-vintage TDFs that could go undetected by traditional risk measures.

September 20, 2018

This is the fourth installment in our series on risk, in which our research team leverages new investment risk analytics in Stylus Pro to demonstrate how historical and forward-looking stress tests can provide deeper insight into fund performance across various market regimes and hypothetical scenarios.

In this post, we take a more granular look at a group of 38 funds within the 2020 target-date vintage, which is the vintage intended for investors planning to retire in or around 2020. Near-dated target-date funds (TDFs) may have widely varying allocations to growth assets (primarily stocks).

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