As the $144.5 billion playing field for target-date funds continues to get more and more crowded, the funds are diversifying their holdings to distinguish themselves, The Wall Street Journal reports.

More are looking to alternative investments, such as private equity, real estate investment trusts, directly held real estate, commodities, emerging-market debt, exchange-traded funds, high-yield bonds and even such hedging strategies as absolute return.

And with that, the funds are hoping to deliver higher returns—but taking on greater risk.

“The thinking is to provide more of the types of diversification ‘in a defined contribution retirement savings plan] that you might typically see in a defined benefit plan,” said Lori Lucas, senior vice president at Callan Associates.

But like reports of other mutual funds that are increasingly turning to derivatives, this is causing problems for the funds to determine their accurate net asset value.

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