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.

RELATED TERMS
  1. Zacks Investment Research

    A company, founded in 1977, dedicated to providing professional ...
  2. Target-Date Fund

    A mutual fund in the hybrid category that automatically resets ...
  3. Life-Cycle Fund

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

    A type of target-date retirement fund whose asset allocation ...
  5. Through Fund

    A type of target-date retirement fund whose asset allocation ...
  6. Asset Allocation

    An investment strategy that aims to balance risk and reward by ...
Related Articles
  1. Investing

    Zacks vs. Morningstar: Comparing MF Research Providers

    Discover the similarities and differences between mutual fund research providers, Morningstar, Inc. and Zacks Investment Research.
  2. Retirement

    Target Your Retirement With Life-Cycle ETFs

    These target-date funds provide asset allocation and rebalancing at a low cost.
  3. Investing

    Life-Cycle Funds: Can It Get Any Simpler?

    Discover a security that offers a way for you to put your retirement portfolio on autopilot.
  4. Investing

    The Pros And Cons Of Target-Date Funds

    These accounts will take charge of your retirement savings, but should you let them?
  5. Retirement

    Mutual Funds Commonly Found In Retirement Plans

    If you have a 401(k), these fund names should ring a bell. Here's how and why.
  6. Investing

    When to Use Target-Date Funds

    Learn about the different uses for target-date funds. Understand the risks and considerations for making an investment in a target-date fund.
  7. Investing

    Target Date Funds: More Popular, Cheaper Than Ever

    How target date funds can help investors weather volatility when it comes to saving for retirement.
  8. Financial Advisor

    Target-Date vs. Index Funds: Is One Better?

    Target-date and index funds are difficult to compare because they differ in both structure and objective, though investors can compare two specific funds.
  9. Financial Advisor

    What Target-Date Funds Can Teach About Investing

    Target-date funds are a popular way to invest for retirement. Here's what they can teach the novice investor.
  10. Financial Advisor

    Few Target-Date Managers Invest in Their Own Funds (MORN)

    Target-date funds have experienced explosive growth in the past 20 years. Many managers who run them, however, have failed to invest their own money.
RELATED FAQS
  1. How often do target-date funds rebalance?

    Learn about target-date funds and how they begin rebalancing their portfolio 20 to 25 years before the target date as an ... Read Answer >>
  2. What are the best free online resources to compare no-load mutual funds?

    Find out about some of the best available free online resources that investors can use to research and compare no-load mutual ... Read Answer >>
  3. Why do financial advisors dislike target-date funds?

    Learn the reasoning behind why financial advisors prefer not to place their clients into target-date funds and how you can ... Read Answer >>
  4. Do target-date funds pay dividends?

    Learn about target-date funds and how they typically pay dividends since a portion of their portfolio is allocated to stocks ... Read Answer >>
  5. What fees are associated with target-date funds?

    Learn what fees are charged by target-date funds, and whether these funds are cheaper than managing a portfolio using individual ... Read Answer >>
Hot Definitions
  1. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  2. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  3. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  4. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  5. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  6. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
Trading Center