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Targeted Distribution Funds: Solving Retirees' Income Problems: (HNDL) - (TFIV)

FYI: Inventing new products to solve difficult financial problems has been a mainstay of the mutual fund industry. In the 1990s, the fund industry introduced target-date retirement funds. That was followed by the launch of target-maturity bond funds that customize a person’s fixed-income exposure to a defined year.

By extension, the exchange-traded fund industry has done plenty of innovating itself. And the latest twist could someday rival the popularity of previous inventions: targeted distribution funds.

Sometimes referred to as “managed payout funds,” targeted distribution funds aim to deliver lifetime income payments via a minimum distribution amount. Certain funds offer a specified monthly payout while others deliver variable payments based upon fund performance. Let’s examine ETFs that follow this strategy.

M* Snapshot HNDL:

M* Snapshot TFIV:
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