Vanguard 2035 Fund Fact Sheet

Overview

The Vanguard Target Retirement 2035 Fund (VFFVX) is a target-date fund designed for investors who plan to retire around 2035. The fund's asset allocation gradually becomes more conservative as the target retirement date approaches, reducing its exposure to stocks and increasing its exposure to bonds.

Investment Strategy

The Vanguard Target Retirement 2035 Fund invests in a diversified portfolio of stocks, bonds, and other assets. The fund's asset allocation is based on the following glide path:

The fund's asset allocation will be adjusted over time as the target retirement date approaches.

Fund Expenses

The Vanguard Target Retirement 2035 Fund has an expense ratio of 0.15%. This means that for every $10,000 invested in the fund, $15 will be used to cover the fund's operating expenses.

Performance

The Vanguard Target Retirement 2035 Fund has a long-term track record of strong performance. Over the past 10 years, the fund has returned an average annualized return of 7.8%.

Risk

The Vanguard Target Retirement 2035 Fund is a moderate-risk investment. The fund's asset allocation is designed to reduce risk as the target retirement date approaches. However, there is no guarantee that the fund will be able to meet its investment objectives.

Suitability

The Vanguard Target Retirement 2035 Fund is suitable for investors who are planning to retire around 2035 and who are comfortable with a moderate level of risk. The fund can be used as a core holding in a retirement portfolio.

How to Invest

The Vanguard Target Retirement 2035 Fund can be purchased through Vanguard or through a financial advisor. The minimum investment amount is $1,000.

Conclusion

The Vanguard Target Retirement 2035 Fund is a low-cost, well-diversified investment option for investors who are planning to retire around 2035. The fund's asset allocation is designed to reduce risk as the target retirement date approaches, making it a suitable investment for investors who are comfortable with a moderate level of risk.

Frequently Asked Questions

What is a target-date fund?

A target-date fund is a type of mutual fund that is designed to provide a one-stop solution for investors who are planning to retire on a specific date. The fund's asset allocation is gradually adjusted over time to become more conservative as the target retirement date approaches.

What are the benefits of investing in a target-date fund?

Target-date funds offer a number of benefits, including:

• Simplicity: Target-date funds are a simple and easy way to invest for retirement. Investors do not need to make any decisions about asset allocation or rebalancing.
• Diversification: Target-date funds are diversified across a wide range of asset classes, which helps to reduce risk.
• Automatic rebalancing: Target-date funds automatically rebalance their asset allocation as the target retirement date approaches. This helps to ensure that the fund remains aligned with the investor's risk tolerance.

What are the risks of investing in a target-date fund?

The main risk of investing in a target-date fund is that the fund may not be able to meet its investment objectives. The fund's value can fluctuate in response to changes in the market, and there is no guarantee that the fund will be able to provide a positive return.

How do I choose the right target-date fund?

When choosing a target-date fund, investors should consider the following factors:

• Target retirement date: Investors should choose a fund that has a target retirement date that is close to their own estimated retirement date.
• Risk tolerance: Investors should choose a fund that has a risk tolerance that is consistent with their own.
• Investment goals: Investors should choose a fund that has investment goals that are aligned with their own.

Additional Resources

• Vanguard Target Retirement Funds
• Target-Date Funds: A Simple Way to Invest for Retirement
• Choosing a Target-Date Fund