Zacks Lifecycle Indexes


DEFINITION of 'Zacks Lifecycle Indexes'

A series of indexes developed by Zacks Investment Research, Inc., to provide a benchmark for the lifecycle of target-date funds, with a different index for each target date. The Zacks Lifecycle Index constituents include U.S. equities, international equities, and domestic bonds.

BREAKING DOWN 'Zacks Lifecycle Indexes'

Lifecycle or target-date funds have become popular with investors saving for retirement, especially those without the knowledge or interest to be actively involved in the management of their investments. As the target date approaches, the asset-mix allocation gradually becomes more conservative. Zacks Investments Research, Inc., uses proprietary selection rules to identify stocks and bonds with risk/return profiles consistent with general market benchmarks. The Zacks index will have 300 U.S. stocks, 100 international developed-markets equities and 100 debt securities.

  1. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  2. Target-Date Fund

    A mutual fund in the hybrid category that automatically resets ...
  3. Index

    A statistical measure of change in an economy or a securities ...
  4. Hybrid Fund

    A category of mutual fund that is characterized by portfolio ...
  5. Life Cycle

    The course of events that brings a new product into existence ...
  6. Life-Cycle Fund

    A special category of balanced, or asset-allocation, mutual fund ...
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