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.

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RELATED FAQS
  1. Is it possible to invest in an index?

    While you cannot buy indexes, which are just benchmarks, there are three ways for you to mirror their performance. Read Answer >>
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