Balanced funds

Broad-based, diversified investment portfolios

Our balanced funds invest in a variety of domestic and international stock and bond asset classes to pursue strategies focused on various combinations of income, growth, and stability. These funds are managed by Vanguard's equity and fixed income teams or by Wellington Management Company, LLP.

We also offer target-date funds, target-risk funds, and managed payout funds.


Vanguard Target Retirement Funds: strategic, straightforward

Vanguard Target Retirement Funds follow our underlying philosophy—that balance, diversification, low costs, and a long-term outlook are vital to investment success.

Based on our tested investment strategies and extensive research, each portfolio’s allocation adjusts automatically to become more conservative over time. The allocation glide path results in decreased equity allocation as the investor nears and enters retirement.

Each Target Retirement Fund invests in a combination of 5 underlying Vanguard index funds.

Note: Investments in Target Retirement Funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire and leave the workforce. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in the Target Retirement Fund is not guaranteed at any time, including on or after the target date.

 

Vanguard target-risk funds let the investor decide

Vanguard LifeStrategy® Funds are designed to provide various targeted levels of broadly diversified investment risk, ranging from aggressive to conservative, with investors determining which risk level and corresponding portfolio is appropriate for their circumstances.

The asset allocation policy targets for the LifeStrategy Funds do not automatically change over time. If an investor's risk tolerance changes for any reason, the investor should ideally select a new LifeStrategy or other fund based on their updated assessment of risk tolerance.


Managed payout fund

Vanguard Managed Payout Fund is designed to provide regular monthly payments based on a disciplined spending rule from a broadly diversified investment portfolio, while also seeking to have these payments and the invested capital seek pace with inflation over time.

Balanced & Target date funds » 

Traditional Target risk Target date Managed payout

 

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Target Retirement Funds

Also of interest

Vanguard's approach to target-date funds

Target-date fund adoption in 2013

Professionally managed allocations: Participant usage and impact

Performance report: How Vanguard funds stacked up

Managed Payout Fund:

  • Vanguard Managed Payout Fund isn't guaranteed to achieve its investment objectives and is subject to loss. In addition, some of its distributions may be treated in part as a return of capital. The dollar amount of the fund’s monthly cash distributions could go up or down substantially from one year to the next and over time. It's also possible for the fund to suffer substantial investment losses and simultaneously experience additional asset reductions as a result of its distributions to shareholders under its managed-distribution policy. An investment in the fund could lose money over short, intermediate, or even long periods of time because the fund allocates its assets worldwide across different asset classes and investments with specific risk and return characteristics. Diversification doesn't ensure a profit or protect against a loss in a declining market. The fund is proportionately subject to the risks associated with its underlying funds, which may invest in stocks (including stocks issued by REITs), bonds, cash, inflation-linked investments, commodity-linked investments, long/short market neutral investments, and leveraged absolute return investments.
  • The Managed Payout Fund may not be appropriate for all investors. For example, depending on the time horizon, retirement income needs, and tax bracket, an investment in the fund might not be appropriate for younger investors not currently in retirement, for investors under age 59½ who may hold the fund in an IRA or other tax-advantaged account, or for participants in employer-sponsored plans. Investors who hold the fund within a tax-advantaged retirement account should consult their tax advisors to discuss tax consequences that could result if payments are distributed from their account prior to age 59½ or if they plan to use the fund, in whole or in part, to meet their required minimum distribution (RMD) obligations. Distributions from the fund are unlikely to precisely match an investor's IRA RMD obligations. In addition, use of the fund may be restricted in employer-sponsored plans by the terms of the governing plan documents and/or at the discretion of the plan administrator. Review the information carefully with your financial advisor before deciding whether the fund is right for you.

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