Indexing in defined contribution plans 2006 to 2016

May 23, 2017

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In the last ten years, the percentage of Vanguard defined contribution plan assets invested in index options has greatly increased, thanks primarily to the addition of index target-date funds to the plans. By 2016, 1 of every 4 dollars was invested in index target-date options.

In a Vanguard research paper, Indexing in defined contribution plans 2006 to 2016, authors Cynthia A. Pagliaro and Stephen P. Utkus explore the reasons behind this trend and note the implications for plan sponsors.

Read white paper