Mutual fund assets held by defined contribution plans were approximately $3.9 trillion as of the end of 2016. About 46% of those assets were invested in U.S.-equity focused funds and just more than a quarter were invested in hybrid funds, primarily target date and lifestyle.

The 10-year trend has seen allocations to hybrid funds increase to 25.6% of DC assets from about 16%, while equity assets have fallen to 9.5% as a proportion of the whole. Bond funds have seen mildly higher interest from investors.

The increased use of target-date options has been driven by more plans installing automatic-enrollment features and making target-date funds the default investment options.