This investment option represents a specific target-date fund offered by The Vanguard Group. Target-date funds are designed to simplify retirement investing by providing a diversified portfolio of stocks and bonds tailored to a specific retirement year. The asset allocation within the fund automatically adjusts over time, becoming more conservative as the target date approaches. A “trust select” designation often signifies a lower-cost share class typically available to participants in employer-sponsored retirement plans and certain other eligible investors.
Choosing a target retirement fund can offer significant advantages to investors. It eliminates the complexities of asset allocation and rebalancing, requiring minimal ongoing management. The glide path, or the gradual shift from stocks to bonds, is designed to manage risk appropriately throughout the investment timeframe. Access to a diversified portfolio of underlying assets at a low cost contributes to long-term growth potential. Target-date funds have gained popularity as a core investment strategy for retirement savings.
