Vanguard Group Tops its Target-Date-Funds

Vanguard Group collected new investor money in its target-date funds (TDFs) last year and recovered the top rank it had held for over a decade. Over the last decade and a half, target-date funds have been increasingly popular in 401(k) and other employer retirement plans.

Investors choose a fund whose date best approximates their expected retirement year. As investors approach retirement age, the fund becomes more conservative, shifting from equities to bonds. For employees who are automatically enrolled in a 401(k) plan, many businesses utilize the money as a de facto investment.

TDF Record contributions Summary

According to Morningstar, TDFs received $170 billion in new contributions in 2021, setting an annual record.

Assets in total funds surpassed $3.3 trillion, up about 2...

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