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In One Chart: Here’s how target-date funds have taken over Wall Street

Over the past decade, target-date mutual funds have gotten bigger, cheaper and phenomenally popular.

The style of funds, which automatically become more conservative as they near a preset year — typically by reducing their exposure to equities in favor of bonds — have taken over Wall Street, emerging as one of the most popular choices for investors to use in their retirement accounts. Target-date funds are seen as ideal retirement holdings, as they are designed to be held for extremely long periods of time, and because they rebalance their holdings as the holder ages without the investor having to make timing decisions.

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