Target-date funds are a preferred retirement savings vehicle for many Americans, reaching $4 trillion in assets in 2024. For good reasons: With a target-date fund you get access to a diversified portfolio that changes as your risk does. Plus, you can set it and forget.
During recent market turmoil, target-date funds proved their mettle. Between February 19, the market’s 2025 peak and April 8, the S&P 500 lost 18.6% while target-date funds covered by Morningstar lost 7.6%. These funds are also the path of least resistance in a world where everyone wants everything curated, from music playlists to streaming shows.
