Target-date funds are popular with retirement savers. But a London Business School finance professor says these funds could produce better results if in addition to automatically adjusting stockholdings based on an investor’s age, they rebalanced quarterly to account for stock-market risk. “When there is more risk out there, the return on stocks is going to be higher,” says Francisco Gomes, who has studied the issue. That is when what he calls a “tactical target-date fund” would boost its allocation to stocks. In contrast,...

Source: Wall Street Journal March 04, 2019 03:00 UTC