Vanguard Managed Payout Growth and Distribution Fund
Morningstar Rating: 4 Stars
Minimum Investment: $25,000
Expenses: 0.43% ($43 for every $10,000 invested)
Performance Summary: VPGDX’s three-year total return of 9.5% outperformed the retirement income mutual fund category by 3.5 percentage points, according to data from Morningstar.
Notes: Designed to generate retirement income, VPGDX invests in other Vanguard stock, bond and commodities funds. VPGDX automatically makes regular monthly payments, which adjust each January depending on the performance of the fund. In early January, VPGDX will be merged with two other Vanguard managed payout funds. This new fund, known simply as the Vanguard Managed Payout Fund, will have an annual distribution target rate of 4%.