A pre-set asset allocation schedule that becomes more conservative as a target date approaches.
In depth
Standard for target-date funds (TDFs) used in retirement accounts. "Through" glide paths continue de-risking past retirement; "to" glide paths stop at target date. Critics note one-size-fits-all approach ignores individual circumstances.
Frequently asked about Glide Path
What is Glide Path?
A pre-set asset allocation schedule that becomes more conservative as a target date approaches. Standard for target-date funds (TDFs) used in retirement accounts. "Through" glide paths continue de-risking past retirement; "to" glide paths stop at target date. Critics note one-size-fits-all approach ignores individual circumstances.
Why does Glide Path matter for investors?
In portfolio, Glide Path is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
How is Glide Path used in practice?
Standard for target-date funds (TDFs) used in retirement accounts. "Through" glide paths continue de-risking past retirement; "to" glide paths stop at target date.