Can someone please give me some insight on M1Finance’s Target Retirement Fund?
I’m a big fan of Target Retirement Funds and I like M1Finance’s user features BUT I just want to know why M1’s 2060 Retirement Fund has 16 holdings vs. Vanguard’s 2060 Retirement Fund which only has 3.
The performance of both seems to be similar so I’m assuming they have very similar holdings.
But I just want to learn more so I will know exactly what I am investing in!
Thanks!
Ehhh… in my opinion M1 is just being tricky for no reason here. They could just buy the total US stock market ETF (VTI) but instead they buy S&P 500, Value, mid-cap, small-cap, small-cap value, etc, etc. It all combines to something nearly identical. The downside is just a whole bunch of complexity. That is mostly abstracted away by M1 where you can just choose one pie, but if you were to transfer your account or something you might have more of a logistical mess on your hands.
But broad strokes, I agree they’re likely nearly identical in performance and likely to be going forward.
Great to know. Thanks Jeremy!
