Top Performing Target-Date Funds for Retirement Investors

This article highlights the best target-date funds for retirement investors, which automatically adjust investments to help reach retirement goals. The top funds are selected based on four or five stars on Morningstar, expense ratio less than 0.5%, top performers over the last five years, no-load funds, and performance data as of July 18, 2025. The article provides tables of the best target-date funds for different retirement years, including 2055, 2050, 2045, 2040, and 2035, with their expense ratios and 5-year annual returns.

Target-date funds (TDFs) are a convenient and effective way for investors to prepare for retirement. These funds automatically adjust their investments as the target retirement date approaches, reducing the need for manual portfolio management. This article highlights the top target-date funds based on a comprehensive evaluation of their performance, expense ratios, and other key metrics.

Methodology

The selection of the best target-date funds is based on the following criteria:
- Four or five stars on Morningstar
- Expense ratio less than 0.5%
- Top performers over the last five years
- No-load funds
- Performance data as of July 18, 2025

Best Target-Date Funds

# 2055 Target-Date Funds

| Fund (Ticker) | Expense Ratio | 5-Year Annual Return |
|---------------|----------------|----------------------|
| Mutual of America Clear Passage 2055 Fund (MUROX) | 0.47% | 13% |
| BlackRock LifePath Index 2055 (LIVAX) | 0.39% | 12.2% |
| Nuveen Lifecycle Index 2055 Premier (TTIPX) | 0.25% | 11.8% |

# 2050 Target-Date Funds

| Fund (Ticker) | Expense Ratio | 5-Year Annual Return |
|---------------|----------------|----------------------|
| Mutual of America Clear Passage 2050 Fund (MURNX) | 0.46% | 12.8% |
| Nuveen Lifecycle Index 2050 Premier (TLLPX) | 0.25% | 11.7% |
| Vanguard Target Retirement 2050 Fund (VFIFX) | 0.08% | 11.6% |

# 2045 Target-Date Funds

| Fund (Ticker) | Expense Ratio | 5-Year Annual Return |
|---------------|----------------|----------------------|
| Mutual of America Clear Passage 2045 Fund (MURMX) | 0.46% | 12.5% |
| American Funds 2045 Target Date Retirement Fund (FBHTX) | 0.45% | 11.5% |
| Fidelity Freedom Blend 2045 (FHAQX) | 0.47% | 11.5% |

# 2040 Target-Date Funds

| Fund (Ticker) | Expense Ratio | 5-Year Annual Return |
|---------------|----------------|----------------------|
| Mutual of America Clear Passage 2040 Fund (MURLX) | 0.47% | 12% |
| American Funds 2040 Target Date Retirement Fund (FBGTX) | 0.44% | 11.2% |
| Fidelity Freedom Blend 2040 (FHARX) | 0.47% | 11.1% |

# 2035 Target-Date Funds

| Fund (Ticker) | Expense Ratio | 5-Year Annual Return |
|---------------|----------------|----------------------|
| MoA Clear Passage 2035 Fund (MURJX) | 0.50% | 10.6% |
| American Funds 2035 Target Date Retirement Fund (FBFTX) | 0.42% | 9.9% |
| Fidelity Freedom Blend 2035 (FHASX) | 0.47% | 9.4% |

Conclusion

Target-date funds provide a simple and efficient way for investors to manage their retirement portfolios. By selecting funds based on their performance, expense ratios, and other key metrics, investors can ensure they are making informed decisions. As the retirement landscape evolves, the integration of private market investments into these funds, as seen with the recent partnership between Voya Financial and Blue Owl Capital, offers new opportunities for retirement plan participants to build more resilient portfolios.

References

[1] https://www.bankrate.com/retirement/best-target-date-funds/
[2] https://www.benefitspro.com/2025/07/17/voya-blue-owl-team-up-to-offer-private-market-investments-for-401k-plans/