Fidelity maintains target-date volume; Vanguard comes out on top

Fidelity is still the second-largest TDF provider even though it has seen $20 billion in outflows since the start of 2012.
MAR 22, 2018

Fidelity Investments remains the second-largest target-date fund provider, despite experiencing a total of $20 billion in outflows between the start of 2012 and the end of February. The company did have net inflows of $3.1 billion in 2017 after net outflows in each of the previous five years. The equity-heavy fund families (both active and passive) make up about one-fifth of all invested target-date assets. According to Pensions & Investments' latest survey data, Fidelity serves 19.7 million participants across 29,255 plan sponsors. Vanguard took in about $189 billion over the same period, a net $51.4 billion in 2017, more than double the next-highest competitor, American Funds, which took in about $24 billion. Vanguard serves about 4.6 million participants. The five largest target-date fund providers have increasingly gained market share on their competitors, raking in 48% of all target-date fund flows in 2017, up from 43% in 2016 and 25% in 2014. So far in 2017, the top five managers have pulled in just under 60% of all client flows in target-date mutual funds.
Target-date fund flows
Cumulative 2012 through Feb. 28
Source: Morningstar Direc
Largest target-date fund managers
As of Feb. 28
Source: Morningstar Direc

(More: Passive target-date funds? No such thing) Charles McGrath is data editor at InvestmentNews' sister publication, Pensions&Investments.

Latest News

Trump not planning to fire Powell, market tension eases
Trump not planning to fire Powell, market tension eases

Futures indicate stocks will build on Tuesday's rally.

From stocks and economy to their own finances, consumers are getting gloomier
From stocks and economy to their own finances, consumers are getting gloomier

Cost of living still tops concerns about negative impacts on personal finances

Women share investing strengths, asset preferences in new study
Women share investing strengths, asset preferences in new study

Financial advisors remain vital allies even as DIY investing grows

Trump vows to 'be nice' to China, slash tariffs
Trump vows to 'be nice' to China, slash tariffs

A trade deal would mean significant cut in tariffs but 'it wont be zero'.

Fed's Kugler warns of worse-than-expected impact of tariffs
Fed's Kugler warns of worse-than-expected impact of tariffs

Inflation, economic risk is greater than previously thought.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.