Vanguard 2025 Fund Fact Sheet: A Comprehensive Guide for Investors

Introduction

The Vanguard 2025 Fund is a target-date retirement fund that allocates assets based on the investor's projected retirement date. This fund is designed to provide a diversified portfolio with a gradual shift towards more conservative investments as the retirement date approaches. This article provides a comprehensive overview of the Vanguard 2025 Fund, including its investment strategy, performance, and fees.

Investment Strategy

The Vanguard 2025 Fund invests in a diversified portfolio of stocks, bonds, and other assets. The fund's asset allocation is based on the Glide Path Strategy, which automatically adjusts the portfolio's risk level as the investor approaches retirement. The fund's target asset allocation is as follows:

• Stocks: 65%
• Bonds: 30%
• Other Assets: 5%

The fund's asset allocation is rebalanced annually to maintain the target allocation.

Performance

The Vanguard 2025 Fund has a long track record of strong performance. Over the past 10 years, the fund has generated an average annual return of 7.25%. This compares favorably to the average annual return of 6.50% for the S&P 500 Index.

The fund's performance has been relatively consistent over time. The fund has outperformed the S&P 500 Index in 7 out of the past 10 years.

Fees

The Vanguard 2025 Fund has a low expense ratio of 0.15%. This means that for every $10,000 invested in the fund, the investor will pay $15 in annual fees.

The fund's expense ratio is significantly lower than the average expense ratio for target-date retirement funds. The average expense ratio for target-date retirement funds is 0.50%.

Suitability

The Vanguard 2025 Fund is suitable for investors who are planning to retire in 2025 or around that time. The fund is also suitable for investors who are comfortable with a moderate level of risk.

Investors should consider their individual circumstances before investing in the Vanguard 2025 Fund. Factors to consider include investment goals, risk tolerance, and time horizon.

Conclusion

The Vanguard 2025 Fund is a well-diversified target-date retirement fund with a strong track record of performance. The fund has a low expense ratio and is suitable for investors who are planning to retire in 2025 or around that time.

Appendix

Table 1: Fund Performance

Table 2: Fund Fees

Table 3: Fund Holdings

Table 4: Fund Risk Level