The Dow Jones Real Return Target Date Indexes are the first strategic indexes of their kind to measure a real return strategy and gauge the effects of inflation.
The Dow Jones Real Return Target Date Indexes are a strategic index family comprised of composite indexes that include the three major asset classes as well as TIPs, commodities, real estate securities and US nominal bonds.
The Dow Jones Real Return Target Date Indexes are maintained by one of America 's most trusted resources for financial information.
Dow Jones Real Return Target Date Indexes provide measurements of diverse lifecycle portfolios that tend to start out aggressively to grow assets and end with a conservative mix of investments. The methodology begins by reflecting a mix of asset classes intended to represent a measurement of the capital accumulation phase and carefully transitions to measurement of a capital preservation phase. As the investment maturity date approaches, the index methodology reflects a systematic shift from index components measuring an aggressive to conservative mix of assets.
The initial real return target date portfolio index is more heavily weighted in equities, commodities and real estate subindexes. To reduce the potential volatility of the index, assets such as TIPS are also included for measurement purposes. Our systematic approach gives greater emphasis on measuring assets designed to represent accumulation during the first 25 years and then increasing weight to assets designed to reflect asset preservation later in the investment/time horizon.