Vanguard Target Retirement 2015 Fund
Morningstar Rating: 4 Stars
Minimum Investment: $1,000
Expenses: 0.16% ($16 for every $10,000 invested)
Performance Summary: VTXVX’s three-year total return of 9.1% outperformed the target date mutual fund category by 1.7 percentage points, according to data from Morningstar.
Notes: Don’t let then name fool you — this fund is designed for anyone retiring between 2013 and 2017. VTXVX currently invests in five Vanguard index funds that give it a mix of 55% stocks and 45% bonds. But, as a target-date retirement fund, it will become more conservative over time, automatically increasing its exposure to bonds and decreasing its exposure to stocks. After about seven years, VTXVX’s allocation will match that of VTINX.
As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.