5 Low-Cost Target-Date Funds for 2026

A target-date fund is a "set it and forget it" retirement savings option that is often the default in a 401(k) plan, but you can also invest in one through a taxable brokerage account or an IRA.

These funds remove two headaches for investors: deciding on an asset mix and rebalancing those investments over time. Another advantage of target-date funds is that they encourage a long-term investing mindset, helping investors avoid overreacting to market volatility.

What is a target-date fund?

Target-date funds, also called life-cycle funds or target-retirement funds, are diversified mutual funds that automatically rebalance their asset allocation as you approach retirement (i.e., the "target date").

This generally means the fund invests more heavily in stocks when you're far from retirement and gradually shifts toward lower-risk investments as you get closer to retiring. The idea is to continually balance risk and returns to build wealth and protect a growing nest egg.

Most target-date funds have names that include target dates in five-year increments. This makes it easier to identify and choose funds with target dates that align with your planned retirement.

Top target-date funds with low costs

Here are some popular target-date funds designed for investors planning to retire in 2035, 2045, 2055 or 2065. We selected funds open to new investors with low costs (no sales commissions and expense ratios of 1% or less) and minimum investments of $2,500 or less.

2035 target-date funds

2045 target-date funds

2055 target-date funds

2065 target-date funds

How target-date funds work

A key feature of target-date funds is their “glide path,” or how the funds gradually shift from a higher allocation of riskier equity funds toward safer investments like bonds, eventually freezing your asset allocation at its most conservative mix to protect your nest egg.

For example, a target fund may begin with a heavy mix of domestic and global equity funds, accounting for 90% of the total investment. But by the target date, equity funds may make up only 30% of the total investment, and fixed-income investments (like bonds and short-term funds) may make up the rest. Some fund providers may offer a more sophisticated range of strategies and mixes as you glide toward your final asset allocation.

"To" vs. "through" target-date funds

A “to” fund has a glide path that freezes your asset allocation the year you plan to retire, whereas a “through” fund continues the glide path years after retirement before freezing your asset allocation.

The philosophy of “through” funds is that life (hopefully) doesn’t stop at retirement. You still may have 20 years or more of living expenses, and the glide path toward safer investments should reflect that. Different “through” target-date funds may extend the glide path 10, 15 or 20 years past retirement.

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How to choose a target-date fund

1. Check the fees

All target-date funds carry an expense ratio, which is an annual fee expressed as a percentage of your investment. How high this fee will be often depends on whether the fund leans on passive investing strategies (generally cheaper) or is actively managed (generally more costly).

2. Know the minimum investment

Investment minimums aren't common if you invest in a target-date fund through your 401(k), but they are common if you invest in one through a different avenue. If a fund has a minimum, make sure it fits your investing budget. Some funds require a minimum investment of $500 to $3,000 or more, but providers may waive this minimum if you make monthly deposits to your account.

3. Understand what the fund invests in

Two identically named 2050 target-date funds can have very different strategies for transitioning from equities to bonds over time. One fund’s asset allocation strategy may be too conservative or not conservative enough, depending on your appetite for risk.

Where to invest in a target-date fund

• Through your 401(k). As mentioned, target-date funds are a common preset choice for a 401(k). If you have a 401(k) and never changed what's in it, there’s a good chance you already have a target-date fund.

• Through a financial advisor or brokerage account. You can work with a qualified financial advisor to select a fund that’s best for you, or you can open a brokerage account and shop for target-date funds on your own.

• Directly from the provider. You can purchase a target-date fund directly from Vanguard, Fidelity, T. Rowe Price or other providers, but your choices may be limited.

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A final word on target-date funds

While target-date funds are "set it and forget it"-style, no investment is truly meant to be forgotten. Be sure to check in on your fund's performance about once per year and review other investments you hold.

How do those assets and your target-date fund fit together? Are you double-dipping on asset classes, or even buying the same fund twice? Talking with a qualified financial advisor who can do an annual checkup of your total portfolio could help avoid these problems.

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