New York-based Stone Ridge Asset Management has unveiled a comprehensive suite of 28 ETFs designed to deliver predictable, long-term income solutions, particularly aimed at retirees.
The ETFs are designed to turn an investor’s retirement savings into predictable cash flows.
Listed on Cboe BZX Exchange, each fund aims to provide reliable monthly income through a specified end year.
The ETFs are divided into two main categories:
Stone Ridge Longevity Income ETFs are designed to offer fixed monthly distributions that consist of both income and principal, primarily derived from investments in US government bonds which are known for their stability and low default risk.
The series spans from 2048 to 2063, with a new ETF maturing each year, allowing investors to select a fund that aligns with their individual retirement planning horizon.
Stone Ridge applies a “Modeled Cohort” approach – each fund is designed with a target cohort in mind, typically individuals born in a specific year. Each ETF aims to provide income until members of its cohort reach age 80, coinciding with 20 years before the fund’s specified end year. At this date, the ETF recalibrates its distribution rates to ensure sustainability through the end year, typically when the cohort reaches age 100.
The Stone Ridge Inflation-Protected Longevity Income ETFs, meanwhile, utilize the same strategy but provide monthly distributions that are adjusted annually for inflation, ensuring that the purchasing power of the income remains relatively stable over time.
These ETFs incorporate Treasury Inflation-Protected Securities (TIPS) into their portfolios with specific TIPS chosen to match the timing and amount of the funds’ distributions.
The series also covers end years from 2048 to 2063, offering a comprehensive suite of options for those seeking inflation-protected income.
Stone Ridge notes that another significant benefit of their ETFs is their tax-advantaged structure as a portion of each distribution is expected to include a return of capital, which may be non-taxable. This feature, combined with the overall tax efficiency of the ETF structure, makes these funds an attractive option for investors seeking to manage their tax liabilities in retirement.
Each ETF comes with an expense ratio of 0.50%.
Stone Ridge Longevity Income ETFs:
Stone Ridge 2048 Longevity Income ETF (LFAE US)
Stone Ridge 2049 Longevity Income ETF (LFAF US)
Stone Ridge 2050 Longevity Income ETF (LFAI US)
Stone Ridge 2051 Longevity Income ETF (LFAJ US)
Stone Ridge 2052 Longevity Income ETF (LFAK US)
Stone Ridge 2053 Longevity Income ETF (LFAL US)
Stone Ridge 2055 Longevity Income ETF (LFAO US)
Stone Ridge 2056 Longevity Income ETF (LFAQ US)
Stone Ridge 2057 Longevity Income ETF (LFAR US)
Stone Ridge 2058 Longevity Income ETF (LFAU US)
Stone Ridge 2060 Longevity Income ETF (LFAW US)
Stone Ridge 2061 Longevity Income ETF (LFAX US)
Stone Ridge 2062 Longevity Income ETF (LFAZ US)
Stone Ridge 2063 Longevity Income ETF (LFBB US)
Stone Ridge Inflation-Protected Longevity Income ETFs:
Stone Ridge 2048 Inflation-Protected Longevity Income ETF (LIAB US)
Stone Ridge 2049 Inflation-Protected Longevity Income ETF (LIAC US)
Stone Ridge 2050 Inflation-Protected Longevity Income ETF (LIAE US)
Stone Ridge 2051 Inflation-Protected Longevity Income ETF (LIAF US)
Stone Ridge 2052 Inflation-Protected Longevity Income ETF (LIAG US)
Stone Ridge 2053 Inflation-Protected Longevity Income ETF (LIAJ US)
Stone Ridge 2055 Inflation-Protected Longevity Income ETF (LIAM US)
Stone Ridge 2056 Inflation-Protected Longevity Income ETF (LIAO US)
Stone Ridge 2057 Inflation-Protected Longevity Income ETF (LIAP US)
Stone Ridge 2058 Inflation-Protected Longevity Income ETF (LIAQ US)
Stone Ridge 2060 Inflation-Protected Longevity Income ETF (LIAU US)
Stone Ridge 2061 Inflation-Protected Longevity Income ETF (LIAV US)
Stone Ridge 2062 Inflation-Protected Longevity Income ETF (LIAW US)
Stone Ridge 2063 Inflation-Protected Longevity Income ETF (LIAX US)