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CIT TDFs More Popular Than OEF TDFs

yogibearbullyogibearbull
edited August 9 in Fund Discussions
Collective investment trusts (CITs) are unlisted, low-cost funds regulated by the OCC (banking regulator). So, their disclosure requirements are different - but the retirement plans have fiduciary duty in selecting them. Many firm's CITs are clones or cousins of their OEFs. The CITs are available in workplace retirement plans.

News is that they are now more popular (50.5% of all TDFs, 06/2024) than the listed OEFs regulated by the SEC (securities regulators). For holders, the difference isn't important except that CITs don't have useable tickers for portfolio tracking, and in-kind transfers out aren't possible. Notably, some outflows from OEFs have been into CITs, so keep that in mind using the new MFO Premium FLOW, FLOWS, TNA tools. @Charles

This while ETFs are catching up fast with OEFs in taxable accounts.

Morningstar https://www.morningstar.com/funds/cits-dethrone-mutual-funds-most-popular-target-date-vehicle
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