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View More Press Releases by Vanguard

Press release:

Vanguard Launches Target Retirement 2065 Products

Issued by: Vanguard

Date: July 12, 2017

July 12, 2017 -- Today, Vanguard launched the latest in its series of Target Retirement products: Vanguard Target Retirement 2065 Fund, Vanguard Institutional Target Retirement 2065 Fund, and Vanguard Target Retirement 2065 Trusts. The products are intended for investors who plan to retire from the workforce in or within a few years of 2065 or who today are roughly 18 to 20 years old.

Like the other low-cost Target Retirement Funds, the 2065 Fund invests in broad-market Vanguard index funds: Vanguard Total Stock Market Index Fund, Vanguard Total Bond Market II Index Fund, Vanguard Total International Stock Index Fund, and Vanguard Total International Bond Index Fund. The Target Retirement Funds gradually shift their asset allocations from more aggressive investments to more conservative ones as the target date approaches.

"The availability of a comprehensive lineup of Target Retirement Funds is important to our investors, particularly our retirement plan clients who want these funds available for every age group of their employee population," said Vanguard Chairman and CEO Bill McNabb. "The addition of the 2065 Funds seeks to meet the needs of young investors just entering the workforce. Understandably, they may not yet be thinking about retirement savings, but setting aside even a small amount now in a low-cost, balanced portfolio can make a big difference in their future financial security."

The expense ratios, which are based on the fees and expenses of the underlying funds, are expected to be 0.16% for the Target Retirement 2065 Fund and 0.10% for the Institutional Target Retirement 2065 Fund. The average industry expense ratio for comparable target-date funds was 0.38% as of December 31, 2016, according to Lipper, a Thomson Reuters Company.

Expected initial asset allocation of Vanguard Target Retirement 2065 Fund (VLXVX)
Underlying fund                               Initial allocation
Vanguard Total Stock Market Index Fund     54.0%
Vanguard Total Bond Market II Index Fund     7.0%
Vanguard Total International Stock Index Fund     36.0%
Vanguard Total International Bond Index Fund     3.0%

As a reminder, the addition of the Target Retirement 2065 Funds and Trusts will seek to meet the needs of investors beginning the accumulation phase of their retirement savings. Meanwhile, Vanguard Target Retirement 2010 Funds and Trusts are about to reach an asset allocation intended to meet the needs of investors in retirement and will be merged with Vanguard Target Retirement Income Funds and Trusts on or around July 21, 2017, as previously announced.

Notes:

  • All investing is subject to risk, including the possible loss of the money you invest. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.
  • Vanguard Target Retirement Trusts are not mutual funds. They are collective trusts available only to tax-qualified plans and their eligible participants. Investment objectives, risks, charges, expenses, and other important information should be considered carefully before investing. The collective trust mandates are managed by Vanguard Fiduciary Trust Company, a wholly owned subsidiary of The Vanguard Group, Inc.
  • Investments in Target Retirement Trusts or Funds are subject to the risks of their underlying funds. The year in the trust or fund name refers to the approximate year (the target date) when an investor in the trust or fund would retire and leave the workforce. The trust or fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in a Target Retirement Trust or Fund is not guaranteed at any time, including on or after the target date.
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