| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers V > Headlines for Vanguard Car Rental USA Inc. > News item |
Vanguard merges two funds, adds new fund targeted to 2060 retirements
By Toni Weeks
San Diego, Oct. 17 - Vanguard said in a press release that it will merge two funds with similar asset allocations and introduce a new fund, the Vanguard Target Retirement 2060 fund, which will be targeted at investors leaving the workforce or retiring within a few years of 2060. When this new fund launches in early 2012, those investors will be 18 to 20 years old.
The 2060 fund will invest in other low-cost broad-based Vanguard index funds to provide exposure to both U.S. stocks and bonds and developed and emerging-market international stocks. According to a form N-1A prospectus filed with the Securities and Exchange Commission, asset allocations are initially expected to be 63% from Vanguard Total Stock Market index fund, 10% from Vanguard Total Bond Market II index fund and 27% from Vanguard Total International Stock index fund. As with all of Vanguard's Target Retirement funds, the asset allocation of the 2060 fund will become more conservative as it approaches the target date.
The expense ratio of the 2060 fund is expected to be 0.18%, similar to that of the other 12 funds in Vanguard's Target Retirement Funds line-up and less than the average industry expense ratio of 0.6% for the funds in the 2060 fund's peer group. The minimum investment for any of the funds in the series is $1,000, which was reduced from $3,000 in May 2011.
Also in early 2012, the Vanguard Retirement 2005 fund will merge with the Vanguard Target Retirement Income fund as their asset allocations become nearly identical. The 2005 fund will immediately be closed to new investors.
The target retirement funds are designed to reach an allocation consisting of 65% bonds, 30% stocks and 5% short-term reserves within seven years after their target date, the release noted.
The investment management company is based in Valley Forge, Pa.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.