In the investment community, target date indexes are valuable tools for measuring portfolios that systematically change over time. These lifecycle portfolios tend to start out aggressively and end with a conservative mix of investments. To date, these indexes, of which Dow Jones was one of the innovators, have focused on equities, bonds and cash.
The new Real Return Target Date Indexes are designed to measure the performance of a lifecycle portfolio that seeks to grow and preserve real value over time. These indexes are the first of their kind to capture the performance of a real return strategy that includes inflation-protected securities and real assets that are considered to potentially counterbalance inflation. Equities, bonds, real estate, commodities and TIPS come together for the first time, to create an index family that not only reflects the performance of the diversity of asset classes available in today's markets, but does so with an eye toward reflecting also the performance of securities considered to protect against inflation.
This new index family was designed by Dow Jones Indexes, with input from experts around the globe, so you can be assured of its integrity and depth. We consistently design indexes that meet the growing needs of the investment community by providing essential benchmark information to serve as a measure of increasingly relevant portfolio performance.