Target-date fees, returns
Published: July 23, 2012
Among the top 20 target-date funds by assets, Vanguard not only posts the lowest average expense ratio, but also the best risk-adjusted returns. Vanguard’s average three-year Sharpe ratio was 1.01, followed by Fidelity, at 0.95, and T. Rowe Price, with 0.94. Average five-year Sharpe ratios were: Vanguard, 0.12; T. Rowe Price, 0.11; and Fidelity, 0.07.