RETIREMENT PLAN INVESTING
Enduring investments
Vanguard's low-cost investments can help put your participants on the path to achieving their retirement goals.
Three fund types. Just one goal: Retirement security.
It’s not just about finance. It’s about people, too.
One size doesn't fit all dreams
Each of your participants has their own vision for retirement. That's why we offer different investment styles to help them get what they want from their money.
Target-date funds
Investment mix that automatically reduces risk as the target date approaches
Actively managed funds
Investments that are managed by industry experts
Index funds
Investments that track the index of a particular market segment
Investment mix that automatically reduces
risk as the target date approaches
Target-date funds
Vanguard's target-date funds (TDFs) are designed to promote financial well-being for your participants up to and through retirement. These investments balance risk and return, automatically growing more conservative as the target date gets closer. And they offer a complete portfolio in one fund.
83%
of Vanguard participants have a TDF. For many, it’s the only fund they have. 1
To retirement, and all the way through it
We blend investment theory with four decades of behavioral insights to design a TDF glide path that helps participants retire when they want, with enough money to live comfortably.
Allocation
100%
80
60
40
20
0
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phase 1, early career. Given their long investment horizon, younger investors can likely afford to take more risks with a 90% stock allocation, which captures growth but is diversified with just enough bonds to temper the worst downturns. ](null)
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phase 1, early career. Given their long investment horizon, younger investors can likely afford to take more risks with a 90% stock allocation, which captures growth but is diversified with just enough bonds to temper the worst downturns. ](null)
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phase 2, transition. We start to gradually reduce stock exposure to build a more conservative portfolio in preparation for retirement.
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phase 2, transition. We begin to allocate assets to short-term Treasury Inflation-Protected Securities, further reducing volatility while providing inflation protection. Learn more
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phase 4, withdrawal. Our research shows 72 is the most common age to start withdrawals. This age is when our default glide path reaches its final asset allocation at 30% stocks and 70% bonds, transitioning to the Target Retirement Income strategy. This strategy is just one part of our holistic retirement income offer to support your participants through their retirement journey. Learn more
25
20
40
60
65
72
95
Age
Investments that are managed by industry experts
Actively managed funds
Our actively managed funds are built on sound and sophisticated investment strategies from some of the top minds in the industry. So you can count on the expertise of not only our in-house managers, but also the two dozen investment firms we work with.
90%
The share of our actively managed funds that outperformed their average competitors over the last 10 years.2
Investments that track the index of a particular market segment
Index funds
You know us as an indexing leader. In fact, Vanguard was built on indexing. We pioneered the strategy, and we’re still leading the way well into the 21st century.
Driven by advanced modeling and trading techniques, our index funds have an enduring record of offering tight index tracking and low fees. The result? $7.3 trillion invested in our index funds.3
Outcomes matter to you—and to us
We know you're making a big decision for your participants and their financial well-being. So Vanguard is committed to providing the best investments for your participants at the lowest possible cost.4 Why does that matter? Because every dollar your participants save on costs is a dollar that's working for their future.
Investments are what we do. Let's talk about which ones may be right for your plan.
Already a client? Contact your representative today.
1 Source: Vanguard, 2023.
2 Disclosure: For the ten-year period ended 3/31/24, 6 of 6 Vanguard money market funds, 86 of 98 bond funds, 21 of 23 balanced funds, and 170 of 188 stock funds, or 283 of 315 Vanguard funds outperformed their peer group averages.
Results will vary for other time periods. Only funds with a minimum quarter-, one-, three-, five-, or ten-year history, respectively, were included in the comparison. (Source: LSEG Lipper)
Note that the competitive performance data shown represent past performance, which is not a guarantee of future results, and that all investments are subject to risks. For the most recent performance, visit our website at www.vanguard.com/performance.
3 Source: Vanguard, February 29, 2024.
4 Vanguard's asset-weighted average expense ratio of 0.08% is less than one-fifth the industry average of 0.44%. Sources: Vanguard and Morningstar, Inc., as of December 31, 2023.
For more information about any fund, visit institutional.vanguard.com or call 800-523-1036 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.
All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss.
Investments in Target Retirement Trusts and Funds are subject to the risks of their underlying funds. The year in the trust or fund name refers to the approximate year (the target date) when an investor in the trust or fund would retire and leave the workforce. The trust or fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. The Income Trust/Fund and the Income and Growth Trust have fixed investment allocations and are designed for investors who are already retired. An investment in a Target Retirement Trust or Fund is not guaranteed at any time, including on or after the target date.
Vanguard is responsible only for selecting the underlying funds and periodically rebalancing the holdings of target-date investments. The asset allocations Vanguard has selected for the Target Retirement Funds are based on our investment experience and are geared to the average investor. Regularly check the asset mix of the option you choose to ensure it is appropriate for your current situation.
Vanguard Target Retirement Trusts are not mutual funds. They are collective trusts available only to tax-qualified plans and their eligible participants. Investment objectives, risks, charges, expenses, and other important information should be considered carefully before investing. The collective trust mandates are managed by Vanguard Fiduciary Trust Company, a wholly owned subsidiary of The Vanguard Group, Inc.