Faith Morrow
The Vanguard Target Retirement 2035 Fund is designed for investors planning to retire in or within a few years of 2035. The fund's asset allocation strategy is designed to gradually shift from aggressive investments to more conservative ones, with a focus on Vanguard's broadest index funds, including U.S. and international stocks and bonds. As of November 27, 2023, the fund had assets totaling almost $80.43 billion invested in 6 different holdings, primarily consisting of four Vanguard mutual funds. The fund has a low expense ratio of 0.00%, making it an attractive choice for retirement savers.
| Characteristics | Values |
|---|---|
| Fund Name | VTTHX |
| Birth Year | 1968-1972 |
| Years to Retirement | About 10 more years |
| Total Net Assets | $90.652 billion |
| Net Expense Ratio | 0% |
| 52-Week Avg Return | 16.14% |
| YTD Lipper Ranking | Quintile 3 (53rd percentile) |
| Fund Type | Mixed-Asset Target 2035 |
| Fund Objective | Provide capital appreciation and current income consistent with its current asset allocation |
| Holdings | 6 |
| Holdings Cover | Domestic and international stocks, including emerging markets; high-quality bond portfolio |
| Underlying Funds | Vanguard Total Stock Market Index Fund, Vanguard Total International Stock Index Fund, Vanguard Total Bond Market II Index Fund, Vanguard Total International Bond Index Fund, Vanguard Market Liquidity Fund |
| Fund Performance (as of November 27, 2023) | 7.31% over the past year, 3.62% over the past three years, 5.74% over the past five years, 6.16% over the past decade |
What You'll Learn
The Vanguard Target Retirement 2035 Fund's asset allocation strategy
The Vanguard Target Retirement 2035 Fund is designed for investors planning to retire and leave the workforce in or within a few years of 2035. The fund's asset allocation strategy starts with an aggressive portfolio that is heavy on stocks and gradually becomes more conservative over time, decreasing equity exposure in favour of bonds. This approach aims to manage risk while helping investors grow their retirement savings.
The fund is well-diversified, investing in thousands of U.S. and international stocks and bonds through Vanguard's broadest index funds. As of November 27, 2023, the fund had assets totalling almost $80.43 billion invested in six different holdings. Its portfolio primarily consists of four Vanguard mutual funds:
- Vanguard Total Stock Market Index Fund
- Vanguard Total International Stock Index Fund
- Vanguard Total Bond Market II Index Fund
- Vanguard Total International Bond Index Fund
By investing in both domestic and international stocks, including emerging markets, the fund offers a wide range of exposure. Additionally, a high-quality bond portfolio helps balance the fund during down cycles.
The Vanguard Target Retirement 2035 Fund provides a straightforward approach to the complex challenge of successfully investing for retirement. It offers a complete portfolio in a single fund, making it an attractive choice for retirement savers due to its underlying index funds and low costs.
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The fund's performance
The Vanguard Target Retirement 2035 Fund is designed for investors planning to retire and leave the workforce in or within a few years of 2035. The fund's asset allocation strategy gradually shifts from aggressive investments to more conservative ones as the target date approaches. As of November 27, 2023, the fund held assets totalling almost $80.43 billion invested in 6 different holdings. The fund's performance has been positive over the past year, with a return of 7.31%. Over the past three years, the fund has returned 3.62%, and over the past five years, it has returned 5.74%. The fund's ten-year performance is also strong, with a return of 6.16%.
The fund's portfolio is well-diversified, consisting primarily of four Vanguard mutual funds: Vanguard Total Stock Market Index Fund, Vanguard Total International Stock Index Fund, Vanguard Total Bond Market II Index Fund, and Vanguard Total International Bond Index Fund. This diversification helps to balance the fund during down cycles, as noted by Morningstar. The fund's low commission rates and expense ratio of 0.00% make it an attractive choice for retirement savers.
Morningstar classifies the fund's risk as "average" due to its exposure to market volatility and interest-rate and credit risk. However, the fund's volatility measurements reflect the uncertainty or risk of change in the value of its securities. Overall, the Vanguard Target Retirement 2035 Fund has had consistent positive returns and is a well-diversified option for investors planning for retirement in the next decade.
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Its portfolio composition
The Vanguard Target Retirement 2035 Fund is designed for investors planning to retire and leave the workforce in or within a few years of 2035. The fund's asset allocation strategy will become more conservative over time, starting with an aggressive portfolio heavy on stocks and gradually decreasing equity exposure in favour of bonds.
The fund's portfolio composition consists primarily of four Vanguard mutual funds:
- Vanguard Total Stock Market Index Fund
- Vanguard Total International Stock Index Fund
- Vanguard Total Bond Market II Index Fund
- Vanguard Total International Bond Index Fund
The fund is well-diversified, with holdings covering both domestic and international stocks, including emerging markets. The international bond stake helps to balance the fund in down cycles and keep volatility in check.
As of November 27, 2023, the fund had assets totalling almost $80.43 billion invested in six different holdings. The Vanguard Target Retirement 2035 Fund has an expense ratio of 0.00%, compared to a category average of 0.43%. Morningstar classifies the fund's risk as "average" due to its exposure to market volatility and interest-rate and credit risk on the bond side of the portfolio.
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The fund's expense ratio
The Vanguard Target Retirement 2035 Fund has an expense ratio of 0.00%, which is significantly lower than the category average of 0.43%. This means that investors in this fund benefit from lower fees compared to similar funds in the industry.
The low expense ratio is a result of Vanguard's broad index funds, which provide access to thousands of U.S. and international stocks and bonds. This diversification helps to keep costs down.
The Vanguard Target Retirement Funds, on average, have an expense ratio of 0.08%, which is 82% less than the industry average for comparable target-date funds. This means that investors in these funds are paying much less for their investments, allowing more money to remain in their accounts.
The Vanguard Target Retirement 2035 Fund's low expense ratio, combined with its well-diversified portfolio and low commission rates, makes it an attractive choice for investors planning for retirement. The fund's asset allocation strategy gradually shifts from aggressive to conservative, providing a balanced approach to saving for retirement.
With no commission fees to trade stocks, options, or crypto, and no account minimums, the Vanguard Target Retirement 2035 Fund offers a cost-effective and accessible option for investors.
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The fund's volatility measurements
Volatility measurements reflect the uncertainty or risk of change in a security's value. Morningstar classifies the Vanguard Target Retirement 2035 Fund's risk as "average". Due to the spectrum of both equities and bonds, the fund can be exposed to market volatility in the US and international markets. It is also exposed to interest-rate and credit risk on the bond side of the portfolio.
The fund has returned 7.31% over the past year, 3.62% over the past three years, 5.74% over the past five years, and 6.16% over the past decade. As of 27 November 2023, the fund has assets totalling almost $80.43 billion invested in six different holdings. Its portfolio consists primarily of four Vanguard mutual funds: Vanguard Total Stock Market Index Fund, Vanguard Total International Stock Index Fund, Vanguard Total Bond Market II Index Fund, and Vanguard Total International Bond Index Fund.
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Frequently asked questions
The Vanguard Target Retirement 2035 Fund invests in other Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire in or within a few years of 2035. The fund's asset allocation will become more conservative over time.
The minimum investment per Target Retirement Fund is $1,000.
Its portfolio consists primarily of four Vanguard mutual funds: Vanguard Total Stock Market Index Fund, Vanguard Total International Stock Index Fund, Vanguard Total Bond Market II Index Fund, and Vanguard Total International Bond Index Fund.
The Vanguard Target Retirement 2035 Fund has an expense ratio of 0.00%.
As of January 31, 2024, the fund's total net assets were $90.652 billion.
