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S&P Target Date Scorecard: Mid-Year 2022

iBoxx Asian Local Currency Indices Monthly Commentary: February 2023

iBoxx USD Asia Ex-Japan Monthly Commentary: January 2023

iBoxx Asian Local Currency Indices Monthly Commentary: January 2023

iBoxx USD Asia Ex-Japan Monthly Commentary: February 2023

S&P Target Date Scorecard: Mid-Year 2022

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Craig Lazzara

Managing Director, Index Investment Strategy

S&P Dow Jones Indices

Summary

  • The S&P Target Date® Scorecard provides performance comparisons and analytics covering the U.S. target date fund (TDF) universe.
  • The S&P Target Date Index Series offers representative benchmarks for TDFs. The series is investable and based on consensus-derived asset allocation weights; its composition is known in advance of evaluation periods.
  • S&P Dow Jones Indices also produces S&P Target Date Style Indices. The “To” style indices aim to reduce the impact of market drawdowns around the expected retirement date, while the “Through” style indices aim to mitigate longevity risk—the risk of outliving one’s assets in retirement.
  • The first half of 2022 was distressing for U.S. equities, to say the least. With concerns about inflation taking center stage, the S&P 500® (-20%), the S&P MidCap 400® (-20%) and the  S&P Small Cap 600® (-19%) all lost substantial value.  Spurred by rising inflation, rising interest rates meant bonds offered limited respite; the S&P U.S. Treasury Bond 7-10 Year Index also declined 11% in the first half of 2022.
  • Unsurprisingly, S&P Target Date Indices with higher equity allocations underperformed. Consequently, far-dated vintages declined more than nearer-dated vintages, and “To” style indices outperformed their “Through” style counterparts.

S&P Target Date Scorecard: Exhibit 1

Near-dated S&P Target Date Indices had higher risk-adjusted performance than their far-dated counterparts.  Risk-adjusted performance improved across all vintages as the evaluation period lengthened, reducing the impact of 2022’s poor performance.

S&P Target Date Scorecard: Exhibit 2



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