Foliofn's Target 2040 "moderate" folio is a different animal entirely. Its 11 ETF holdings include a pair that invest in Japan and Malaysia, respectively; a fund that follows the small-company-focused Russell 2000; and funds that individually track transportation, utilities, telecommunications, and REIT indexes. The idea is to maximize diversification, Considine says. "It's striking how many of the existing target-date solutions simply track the S&P 500," he says. "Some ignore whole asset classes, like commodities. The premise of [the Foliofn funds] is to diversify the way pension plans diversify."
Of course, investors who'd rather take a hands-on approach can assemble their own mix of mutual funds or ETFs and adjust the allocation each year. That would be total control.
