Retirement & Savings

What Is a Target-Date Fund?

A target-date fund is a mutual fund or ETF designed around an expected retirement year, such as 2050. It holds a mix of stocks and bonds that automatically becomes more conservative as the target date approaches, following a schedule known as the glide path.

The Glide Path

Funds far from their target date hold mostly stocks; closer to the date, they shift toward bonds and cash. Different fund families use different glide paths.

Costs

Expense ratios vary widely, from very low for index-based funds to higher for actively managed ones.

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🔗 Related Terms

Asset Allocation Rebalancing Expense Ratio Mutual Fund Diversification

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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.