How Target-Date Funds Work
Target-date funds are diversified, multi-asset portfolios designed to simplify retirement investing. Investors choose the fund with the year closest to their expected retirement date, and the portfolio follows a preset glide path - typically starting with a heavier allocation to growth assets such as equities and gradually shifting toward a more conservative mix as retirement approaches.
How the Canadian Market Has Grown
The first target-date funds launched in Canada in 2005, and the category has since grown into a CAD 159.4 billion market. Alongside that growth, the Canadian target-date universe has become broader and more varied, with more providers and a wider range of portfolio designs.
What’s Shaping the Market in 2026
Recent developments in the Canadian target-date market include the growth of primarily passive “Index Plus” strategies, intensifying competition as several new series have launched or been announced, and continued strong investor inflows.
For a deeper dive, download Morningstar’s 2026 Canadian Target-Date Landscape, which examines assets, flows, providers, portfolio construction, and performance across the Canadian target-date universe.
