Markets

Vanguard LifeStrategy Target-Risk Mutual Funds

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

When you buy any of the four Vanguard target-risk mutual funds, called LifeStrategy funds, you gain access to a diverse mix of Vanguard's low-cost index funds that is aimed at a unique investment objective.

Vanguard target-risk funds are what the investment community refer to as funds of funds. As the name suggests, rather than hold a portfolio of stocks or bonds, a fund of funds holds other mutual funds. With Vanguard's LifeStrategy funds, investors can choose among four target-risk categories, which are broken down into conservative, growth, income, and moderate growth.

Each of Vanguard's LifeStrategy funds holds a unique asset allocation and blend of four Vanguard index funds:

  • Vanguard Total Stock Market Index (MUTF: VTSMX )
  • Vanguard Total Bond Market II (MUTF: VTBIX )
  • Vanguard Total International Stock Index (MUTF: VTIAX )
  • Vanguard Total International Bond Index (MUTF: VTABX ).

In summary, each of Vanguard's LifeStrategy funds has a target-risk allocation that is some combination of U.S stocks, international stocks, U.S. bonds and international bonds.

Vanguard LifeStrategy Target-Risk Funds

Vanguard LifeStrategy Income Fund (MUTF: VASIX ): Investors looking to focus mostly on income with little or no need for long-term growth will prefer VASIX over the other LifeStrategy funds in the lineup. The asset allocation target is a conservative blend of 20% stocks and 80% bonds. The minimum initial investment is $3,000 and the expenses are 0.12%, or $12 for every $10,000 invested.

Vanguard LifeStrategy Conservative Growth (MUTF: VSCGX ): Vanguard's VSCGX can be a smart choice for investors that need income but would also like some growth that can keep pace with inflation. The target asset allocation for VSCGX is 40% stocks and 60% bonds. The minimum initial investment is $3,000 and the expenses are 0.13%.

Vanguard LifeStrategy Moderate Growth (MUTF: VSMGX ): This fund is ideal for investors looking for long-term growth that can outpace inflation but at risk levels below that of an aggressive portfolio. The target asset allocation for VSMGX is 60% stocks and 40% bonds. The minimum initial investment is $3,000 and the expenses are 0.14%.

Vanguard LifeStrategy Growth (MUTF: VASGX ): Investors that want to focus primarily on long-term growth with moderately-aggressive risk will prefer this LifeStrategy option. The target asset allocation is 80% stocks and 20% bonds, which enough to capture the growth potential of stocks while taking the edge off the market risk compared to a portfolio of 100% stocks. The minimum initial investment is $3,000 and the expenses are 0.14%.

As of this writing, Kent Thune did not personally hold a position in any of the aforementioned securities.His No. 1 holding is his privately held investment advisory firm .Under no circumstances does this information represent a recommendation to buy or sell securities.

More From InvestorPlace

The post Vanguard LifeStrategy Target-Risk Mutual Funds appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

VASIX VSMGX VASGX VSCGX VTSMX

Other Topics

Stocks