Changes to the equity allocation include the addition of Vanguard Dividend Growth Fund and Vanguard International Core Fund, and removal of Vanguard Explorer Fund. The adjusted allocations and addition of new funds are expected to achieve better style balance and reduce risk.
The fixed income portion of the fund will be allocated to a new fund, the Vanguard STAR Core-Plus Bond Fund (VCPSX), which will follow the same investment philosophy and process as Vanguard Core-Plus Bond Fund. Vanguard’s core-plus strategy provides investors a single fund solution that gives Vanguard’s Fixed Income Group (FIG) the flexibility to add value across the full taxable universe of investment grade, high-yield, and emerging markets bonds. This flexibility enables FIG to strategically capitalize on opportunities to add alpha across multiple factors including credit quality, maturity, and interest rates.
VCPSX is intended for use only within the Vanguard STAR Fund portfolio and is expected to launch by late Q1 of 2025.
“For nearly 40 years, the Vanguard STAR Fund has provided investors an actively managed, balanced approach which seeks long-term capital appreciation and income in a cost-efficient manner,” said Dan Reyes, head of Vanguard Portfolio Review Department. “The upcoming changes to the fund demonstrate Vanguard’s longstanding commitment to provide low-cost, active investment solutions for long-term investors and position the fund to serve investors well over the next 40 years.”
Transition of the equity and fixed income allocations is expected to begin in Q1 2025. The investment objective, principal investment strategies and policies of the fund will remain the same. The fund’s composite benchmark will be updated to reflect the changes to its underlying investments. A full breakdown of the equity and fixed income allocation changes can be found below.
| Name | Ticker | Current % | New % |
|---|---|---|---|
| Vanguard Windsor Fund | VWNDX | 7.90% | 8.10% |
| Vanguard Windsor II Fund | VWNFX | 14.50% | 13.80% |
| Vanguard PRIMECAP Fund | VPMCX | 6.00% | 6.30% |
| Vanguard U.S. Growth Fund | VWUSX | 12.00% | 11.90% |
| Vanguard Explorer Fund | VEXPX | 3.70% | – |
| Vanguard Dividend Growth Fund | VDIGX | – | 3.80% |
| Vanguard International Value Fund | VTRIX | 9.50% | 6.20% |
| Vanguard International Growth Fund | VWIGX | 8.90% | 6.20% |
| Vanguard International Core Stock Fund | VWICX | – | 6.20% |
| Vanguard STAR Core-Plus Fund | VCPSK | – | 37.50% |
| Vanguard GNMA Fund | VFIIX | 12.50% | – |
| Vanguard Short-Term Investment-Grade Fund | VFSTX | 12.50% | – |
| Vanguard Long-Term Investment-Grade Fund | VWESX | 12.50% | – |
Notes:
- All figures as of October 31, 2024, unless stated otherwise.
- For more information about Vanguard funds, visit vanguard.com 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. The trustees of Vanguard STAR Fund may authorize the Fund to invest in additional Vanguard funds or increase or decrease the percentage of assets invested in any particular fund, without advance notice to shareholders.
- Advice services are provided by Vanguard Advisers, Inc., a registered investment advisor, or by Vanguard National Trust Company, a federally chartered, limited-purpose trust company.