VTTSX – Vanguard Target Retirement 2060 Fund: Overview

The Vanguard Target Retirement 2060 Fund falls within Morningstar’s target-date 2060+ category. This fund is part of Vanguard’s target-date series, which ranges from target retirement dates of 2015 through 2060 in five-year increments. Additionally, Vanguard offers the Target Retirement Income Fund for those already in retirement. These funds are professionally managed with an allocation to equities that gradually decreases until the glide path is reached in the retirement years. Vanguard says, “The 2060 fund invests in 4 Vanguard index funds, holding approximately 90% of assets in stocks and 10% in bonds. You may wish to consider this fund if you’re planning to retire between 2058 and 2062.” The target-date funds are funds of other Vanguard Index funds. Together, Vanguard, Fidelity and T. Rowe Price had about 70 percent of the total target date fund assets at the end of 2015, with Fidelity ranked as the second-largest target-date family. As of September 23, 2020, the fund has assets totaling almost $6.12 billion invested in 5 different holdings.

The fund places in the 51st percentile of its Morningstar peer group for the trailing 12 months and the first percentile for both the trailing three- and five-year periods as of April 30, 2017. As of April 30, 2017, the fund’s allocation was Vanguard Total Stock Market Index (53.86 percent), Vanguard Total International Stock Index (36 percent), Vanguard Total Bond Market II Index (7.13 percent) and Vanguard Total International Bond Index (2.9 percent). The fund launched in January 2012. Parent company Vanguard is the largest mutual fund provider in the U.S. and offers a wide array of mutual funds and ETFs. Vanguard’s trademark is low-cost index products, but the company also offers many actively managed funds as well. The company’s low-cost approach has led to significant inflows of assets into its funds in recent years.

VTTSX – Vanguard Target Retirement 2060 Fund: Parent Company

The Vanguard Group is an American registered investment advisor based in Malvern, Pennsylvania with about $6.2 trillion in global assets under management, as of January 31, 2020. It is the largest provider of mutual funds and the second-largest provider of exchange-traded funds (ETFs) in the world after BlackRock’s iShares. In addition to mutual funds and ETFs, Vanguard offers brokerage services, variable and fixed annuities, educational account services, financial planning, asset management, and trust services. Several mutual funds managed by Vanguard are ranked at the top of the list of US mutual funds by assets under management.

Founder and former chairman John C. Bogle is credited with the creation of the first index fund available to individual investors and was a proponent and major enabler of low-cost investing by individuals. Vanguard is owned by the funds managed by the company and is therefore owned by its customers.

VTTSX – Vanguard Target Retirement 2060 Fund: Performance

The fund has returned 15.27 percent over the past year, 8.95 percent over the past three years, 10.04 percent over the past five years and an unknown percent over the past decade.

VTTSX – Vanguard Target Retirement 2060 Fund: Category

The fund falls in the Mixed Asset Target 2060 category. Vanguard Target Retirement 2060 Fund (VTTSX): Role in Portfolio

Vanguard says, “You may wish to consider this fund if you’re planning to retire between 2058 and 2062.” Target-date funds are generally considered a complete portfolio and can serve as an investor’s only holding in some cases.

VTTSX – Vanguard Target Retirement 2060 Fund: Ranking

The Vanguard Target Retirement 2060 Fund (VTTSX) isn’t ranked currently.

VTTSX – Vanguard Target Retirement 2060 Fund: Investment Strategy

Vanguard says, “Vanguard Target Retirement Funds offer a diversified portfolio within a single fund that adjusts its underlying asset mix over time. The funds provide broad diversification while incrementally decreasing exposure to stocks and increasing exposure to bonds as each fund’s target retirement date approaches.”

VTTSX – Vanguard Target Retirement 2060 Fund: Management

William Coleman and Walter Nejman have co-managed the fund since 2013. Both manage a number of other funds for Vanguard as well.

VTTSX – Vanguard Target Retirement 2060 Fund: Fees

The fund’s expense ratio is 0.16 percent, which is characterized as low by Morningstar.

VTTSX – Vanguard Target Retirement 2060 Fund: Risk

With this or any target-date fund, the risk is the managers invest appropriately for those with this approximate target retirement date. Too much investment risk can entail oversize losses. Too little investment risk can put fund holders at risk for running out of money in retirement.

Volatility Measurements

Volatility measures reflect the uncertainty or risk of change in a security`s value.

Standard Deviation

15.522

Mean

0.816

Sharpe Ratio

0.525

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