Target-Date Fund Flows Bounce Back in 2021
Fidelity and American Funds dominate, while Vanguard sees a seismic shift to its CITs.
Investor contributions to target-date mutual funds made a comeback in 2021 after the popular retirement savings vehicles saw net redemptions for the first time in 2020. During the 2021 calendar year, net flows into target-date mutual funds totaled about $24 billion, up from net outflows of $7.2 billion in 2020. Despite the rebound, net contributions were still down from their $69.9 billion peak in 2017 and less than half of the $59.8 billion of net flows in 2019. Exhibit 1 shows the annual net flows into target-date mutual funds over the past five calendar years.