TDF adoption in 2018

February 28, 2019

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The use of target-date funds (TDFs) in defined contribution plans continues to grow. Fifty-two percent of Vanguard participants were invested in a single TDF in 2018—a percentage that has more than tripled over the last ten years.

A new Vanguard research note looks at the ways TDFs continue to reshape investment patterns in DC plans. Because the funds help participants avoid extreme portfolio allocations and stay disciplined when it comes to risk, their adoption is likely to keep rising.

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