I made a re-allocation move yesterday to a real asset return fund inside our 401k plan. I transferred money that I had been accumulating in a stable value return fund. I intend to use this money eventually to buy more TIPS for our guaranteed retirement income plan but the time just isn’t right for that now.
This fund is currently allocated 47% in a TIPS index, 30% in a REIT index, and 23% in the DJ AIG Commodity index. The real asset return fund was up 3.75% through the first quarter of 2011 and 16.6% over the last year.
Unfortunately, the real asset return fund in our 401k plan has an expense ratio of 0.80%. It’s not awful but still more than I am used to paying for our Vanguard index funds and ETFs.
Do any of you invest in a real asset return fund? Do you even have that option inside your retirement plan?