Vanguard Target Retirement 2040 Fund Fact Sheet

Investing for retirement can be a daunting task, but it's important to start planning early. The Vanguard Target Retirement 2040 Fund is a great option for investors who are looking for a diversified portfolio that will grow over time.

Overview

The Vanguard Target Retirement 2040 Fund is a target-date fund that invests in a mix of stocks, bonds, and other investments. The fund's asset allocation is designed to become more conservative over time as the target retirement date approaches. This means that the fund will invest more in stocks when investors are younger and more in bonds when they are closer to retirement.

The fund's investment objective is to provide long-term capital appreciation and income. The fund invests primarily in U.S. stocks, bonds, and international stocks, with the portfolio composition shifting to a more conservative mix as the target retirement date approaches.

Performance

The Vanguard Target Retirement 2040 Fund has a long history of strong performance. Over the past 10 years, the fund has returned an average of 7.5% per year. This is higher than the return of the S&P 500 index, which has returned an average of 6.9% per year over the same period.

Fees

The Vanguard Target Retirement 2040 Fund has an expense ratio of 0.15%. This is a very low cost for a target-date fund. The fund's low cost helps to keep more of your money invested for the long term.

Who Should Invest in the Vanguard Target Retirement 2040 Fund?

The Vanguard Target Retirement 2040 Fund is a good option for investors who are:

• Looking for a diversified portfolio that will grow over time
• Comfortable with a moderate level of risk
• Planning to retire around 2040

How to Invest in the Vanguard Target Retirement 2040 Fund

You can invest in the Vanguard Target Retirement 2040 Fund through Vanguard's website or through a financial advisor. The minimum investment amount is $1,000.

Alternatives to the Vanguard Target Retirement 2040 Fund

There are a number of other target-date funds available, including:

• Fidelity Freedom Index 2040 Fund
• T. Rowe Price Retirement 2040 Fund
• BlackRock Target Retirement 2040 Fund

These funds all offer a similar investment mix and have similar expense ratios. When choosing a target-date fund, it's important to consider your risk tolerance and investment goals.

Conclusion

The Vanguard Target Retirement 2040 Fund is a great option for investors who are looking for a diversified portfolio that will grow over time. The fund's low cost and strong performance make it a great choice for investors who are planning to retire around 2040.