Vanguard 2025 Fund Fact Sheet: A Comprehensive Overview for Investors

About the Vanguard 2025 Fund

The Vanguard 2025 Fund (VFIFX) is a target-date retirement fund designed to help investors achieve their long-term retirement goals. The fund is designed to provide a diversified portfolio of investments that automatically adjusts its asset allocation based on the investor's age and proximity to retirement.

Fund Inception Date

September 19, 2000

Investment Objective

• To provide investors with a diversified portfolio of investments that meets their objectives for growth and capital preservation.
• To adjust the fund's asset allocation based on the investor's age and proximity to retirement.

Investment Strategy

The Vanguard 2025 Fund invests in a diversified portfolio of stocks, bonds, and other investments. The fund's asset allocation is managed by Vanguard and is designed to provide a balance of growth potential and capital preservation, which gradually shifts over time toward a more conservative allocation as the investor approaches retirement.

Fund Performance

Past performance is not indicative of future results.

1-Year Return

12.35%

3-Year Return

9.84%

5-Year Return

7.92%

10-Year Return

6.29%

Fund Expenses

Fund Minimum Investment

$3,000

Why Invest in the Vanguard 2025 Fund?

There are several reasons why investors may consider investing in the Vanguard 2025 Fund:

• Diversification: The fund provides a diversified portfolio of investments, which can help to reduce risk.
• Automatic rebalancing: The fund's asset allocation is automatically adjusted based on the investor's age and proximity to retirement, which can help to ensure that the fund remains aligned with the investor's risk tolerance and investment goals.
• Low expenses: The fund has low expenses, which can help to improve returns over time.
• Vanguard's reputation: Vanguard is one of the largest and most respected investment companies in the world, with a long history of providing low-cost, high-quality investment products.

Who Should Invest in the Vanguard 2025 Fund?

The Vanguard 2025 Fund is suitable for investors who are

• Approaching retirement: The fund is designed to provide a diversified portfolio of investments that is appropriate for investors who are approaching retirement, or who have already retired.
• Looking for a hands-off approach: The fund's automatic rebalancing feature can help to save investors time and effort, making it a good choice for investors who do not want to actively manage their investments.
• Comfortable with a moderate risk tolerance: The fund's asset allocation is designed to provide a balance of growth potential and capital preservation, which is appropriate for investors with a moderate risk tolerance.

Pain Points

Investors may experience the following pain points when investing in the Vanguard 2025 Fund:

• Market fluctuations: The fund's value can fluctuate with the market, which can lead to losses.
• Interest rate risk: The fund's bond holdings are subject to interest rate risk, which means that the fund's value can decline if interest rates rise.
• Longevity risk: The fund may not provide sufficient income to cover the investor's expenses in retirement, especially if the investor lives longer than expected.

Motivations

Investors may be motivated to invest in the Vanguard 2025 Fund by the following:

• Retirement planning: The fund can help investors to save for retirement and to reach their retirement goals.
• Financial security: The fund can help investors to create a diversified portfolio of investments that can provide financial security in retirement.
• Peace of mind: The fund's automatic rebalancing feature can help to give investors peace of mind, knowing that their investments are being managed by a team of professionals.

Fund Comparison: Vanguard 2025 Fund vs. Fidelity Freedom Index 2025 Fund

Why the Vanguard 2025 Fund Matters

The Vanguard 2025 Fund matters for several reasons:

• It helps investors to save for retirement. The fund provides a diversified portfolio of investments that is designed to help investors reach their retirement goals.
• It can help investors to reduce risk. The fund's automatic rebalancing feature can help to reduce risk by adjusting the fund's asset allocation based on the investor's age and proximity to retirement.
• It can help investors to achieve their financial goals. The fund's professional management team can help investors to achieve their financial goals by providing a diversified portfolio of investments that is designed to meet their individual needs.

Benefits of Investing in the Vanguard 2025 Fund

Investors can benefit from several benefits by investing in the Vanguard 2025 Fund:

• Diversification: The fund provides a diversified portfolio of investments, which can help to reduce risk.
• Automatic rebalancing: The fund's asset allocation is automatically adjusted based on the investor's age and proximity to retirement, which can help to ensure that the fund remains aligned with the investor's risk tolerance and investment goals.
• Low expenses: The fund has low expenses, which can help to improve returns over time.
• Vanguard's reputation: Vanguard is one of the largest and most respected investment companies in the world, with a long history of providing low-cost, high-quality investment products.

FAQs About the Vanguard 2025 Fund

1. What is the Vanguard 2025 Fund's investment objective?

To provide investors with a diversified portfolio of investments that meets their objectives for growth and capital preservation.

2. How does the Vanguard 2025 Fund's asset allocation change over time?

The fund's asset allocation is designed to provide a balance of growth potential and capital preservation, which gradually shifts over time toward a more conservative allocation as the investor approaches retirement.

3. What are the Vanguard 2025 Fund's expenses?

The fund has an expense ratio of 0.15%.

4. What is the Vanguard 2025 Fund's minimum investment?

The fund's minimum investment is $3,000.

5. Who should invest in the Vanguard 2025 Fund?

The fund is suitable for investors who are approaching retirement, looking for a hands-off approach, and comfortable with a moderate risk tolerance.

6. What pain points may investors experience when investing in the Vanguard 2025 Fund?

Investors may experience market fluctuations, interest rate risk, and longevity risk.

7. What motivations may investors have to invest in the Vanguard 2025 Fund?

Investors may be motivated by retirement planning, financial security, and peace of mind.

8. How does the Vanguard 2025 Fund compare to the Fidelity Freedom Index 2025 Fund?

The Vanguard 2025 Fund has a higher expense ratio but is actively managed, while the Fidelity Freedom Index 2025 Fund has a lower expense ratio but is passively managed.