Vanguard Adds Five Target Date Funds

June 7, 2006 (PLANSPONSOR.com) - The Pennsylvania-based company's Target Retirement Funds now include 11 funds, which gradually shift to more conservative investments as the retirement age approaches.

The funds – which invest mostly in stock and bond index funds – require a minimum initial investment of $3,000 and feature weighted expense ratios ranging from 0.20% to 0.21%, according to a news release.

TheĀ investing allocations for the new funds are as follows:

  • 2050: Stocks (90%); Bonds (10%)
  • 2040: Stocks (90%); Bonds (10%)
  • 2030: Stocks (88%); Bonds (12%)
  • 2020: Stocks (73%); Bonds (27%)
  • 2010: Stocks (57%); Bonds (43%)

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