BacktestFolio · Glossary
Glidepath
In plain language
Instead of always holding the same percentage of equities, a glidepath automatically adjusts the allocation over time. Target Date funds do this automatically: they start equity-heavy when you are young and gradually shift to bonds as you approach retirement.
Technical definition
Gradual transition path for portfolio allocation over time — typically from growth assets towards more stable ones approaching retirement (Target Date), or in reverse (Rising Equity Glidepath) in the early years of drawdown to mitigate sequence risk.