Vanguard's approach to target-date funds

April 4, 2019

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The use of target-date funds (TDFs) continues to grow among participants saving for retirement—and for good reason. TDFs can help investors construct well-diversified portfolios while simplifying the investment process.

This updated research paper, Vanguard's approach to target-date funds, outlines the theoretical foundation for life-cycle investing. Authors Scott Donaldson, Fran Kinniry, Brian Scott, Ted Dinucci, and Edoardo Cilla detail Vanguard's perspective on glide-path construction, asset-class diversification, and the potential benefits of an all-indexed investment approach. They also provide simulated outcomes for a hypothetical investor.

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