Target Retirement 2030 Fund (VTHRX)

OPTIONS as of
01/25/2018

Options Expense ratio* Minimum
Investor 0.14% N/A

About our options  


* The acquired fund fees and expenses based on the fees and expenses of the underlying funds.

 

Fees

A fee charged by some mutual funds when an investor buys shares. This fee is not a sales charge or load because it is paid directly to the fund to offset the costs of trading certain securities.

 None

A fee charged by some mutual funds when an investor sells shares. A redemption fee differs from a back-end load because the money is paid back into the fund. Many funds charge redemption fees only when shares are bought and then sold within a specific period of time, generally in an effort to discourage market-timing and short-term trading. Some brokers also charge their clients redemption fees for the sale of securities.

 None

KEY FACTS

Product type: Target-Date 2026-2030
VTHRX
 inception on 06/07/2006
$34.4 billion net assets for
VTHRX
 as of 05/31/2018
Benchmarked to the Target Retirement 2030 Composite Ix
Turnover rate (Fiscal year-end  09/30/2017) 8.80%
CUSIP: 92202E888

Investment approach



  • Simple fund of funds structure seeks to build appropriate asset allocation from preselected stock and bond portfolios.
  • The allocation between funds and asset classes automatically becomes more conservative over time.
  • The fund handles investment selection, asset allocation, and rebalancing through retirement.
  • 100% of assets invested in index funds.

Total returns

as of 06/30/2018

View as:

as of 06/30/2018

9%
8
7
6
5
4
3
2
1
0%
 
 
 
 
 
  1 year 3 year 5 year 10 year

06/07/2006

NAV 
8.48% 7.19% 8.71% 6.96% 6.66%

Target Retirement 2030 Composite Index

*
8.80% 7.41% 8.96% 7.13%

Note: Fee adjusted for mutual funds where applicable.

* Derived by applying the fund’s target asset allocation to the results of the following benchmarks: for international stocks of developed markets, the MSCI EAFE Index through December 15, 2010, the MSCI ACWI ex USA IMI Index through June 2, 2013, and the FTSE Global All Cap ex US Index thereafter; for emerging-market stocks, the Select Emerging Markets Index through August 23, 2006, the MSCI Emerging Markets Index through December 15, 2010, the MSCI ACWI ex USA IMI Index through June 2, 2013, and the FTSE Global All Cap ex US Index thereafter; for U.S. bonds, the Bloomberg Barclays U.S. Aggregate Bond Index through December 31, 2009, and the Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter; for international bonds, the Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index beginning June 3, 2013; and for U.S. stocks, the MSCI US Broad Market Index through June 2, 2013, and the CRSP US Total Market Index thereafter. International stock benchmark returns are adjusted for withholding taxes.

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited.


People and process

Product management

Vanguard Target Retirement 2030 Fund uses an asset allocation strategy designed for investors planning to retire between 2028 and 2032. The fund seeks to provide growth of capital and current income consistent with its current target allocation by investing in a gradually more conservative mix of the following Vanguard funds: Total Stock Market Index Fund, Total Bond Market II Index Fund, Total International Bond Index Fund, and Total International Stock Index Fund. The combination of funds produces a portfolio that is diversified by asset class and holdings.Vanguard Target Retirement 2030 Fund is one of a series of Vanguard life-cycle funds that use a targeted maturity approach as a simplified way to meet investors’ different objectives, time horizons, and changing risk tolerances. As your retirement date approaches, the fund’s allocation will grow more conservative and will begin to invest in the Vanguard Short-Term Inflation-Protected Securities Index Fund to provide a hedge against inflation while dampening the overall volatility of the portfolio. In this regard, the fund diversifies both stock and conventional bond exposure. Within seven years after 2030, the fund’s asset allocation should resemble that of the Target Retirement Income Fund.

Firm and manager details  

Asset allocation as of 05/31/2018

Asset class VTHRX
 Stock 70.19%
 Bond 29.81%
Total 100.00%

Risk and volatility as of 05/31/2018

  VTHRX

Target Retirement 2030 Composite Index

R-squared N/A 1.00
Beta N/A 0.97
Alpha – 0.01 N/A
Standard deviation 7.58% 7.76%
Sharpe ratio 0.80 0.81

Risk and volatility are based on the share class with the earliest inception date.

Risk measures are calculated from trailing 36-month fund returns relative to the associated benchmarks.

The fund is subject to the risks of its underlying funds. As the underlying funds invest in stocks and bonds the fund is subject to several stock and bond market risks, any of which could cause an investor to lose money. However, based on the fund’s current allocation between stocks and the less volatile asset class of bonds, the fund’s overall level of risk should be higher than those funds that invest the majority of their assets in bonds, but lower than those investing entirely in stocks. As the fund’s allocation among underlying funds gradually changes, the fund’s overall level of risk also will decline. In addition to the risks inherent in the asset classes of the underlying funds, the fund also is subject to asset allocation risk, which is the chance that the selection of underlying funds and the allocation of fund assets will cause the fund to underperform other funds with a similar investment objective. 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 2030 when an investor in the fund would retire and leave the work force. 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 2030 Fund is not guaranteed at any time, including on or after the target date. For further details on all risks, please refer to the fund’s prospectus.



    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 work force. 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.