Total Stock Market Index Fund Admiral Shares
Owns the entire U.S. stock market to include small, mid, and large companies
Ticker Symbol:
VTSAX
Expense Ratio:
0.04%
Total International Stock Index Fund Admiral Shares
Owns Developed (75% roughly) and Emerging (25% roughly) stocks outside the U.S.
Ticker Symbol:
VTIAX
Expense Ratio:
0.12%
FTSE All-World Ex-U.S. Small-Cap Index Fund (VFSAX)
Owns small companies outside the U.S. in developed and developing countries
Ticker Symbol:
VFSAX
Expense Ratio:
0.17%
Developed Markets Index Fund Admiral Shares
Owns Developed (think Canada, Germany, Japan, and England) stocks only outside the the U.S.
Ticker Symbol:
VTMGX
Expense Ratio:
0.07%
Emerging Markets Index Fund Admiral Shares
Owns emerging markets/countries (think China, Brazil, India, and Russia) stocks outside the U.S.
Ticker Symbol:
VEMAX
Expense Ratio:
0.14%
Real Estate Index Fund Admiral Shares
Owns stock in commercial real estate (these companies own dozens and dozens of properties) in the U.S.
Ticker Symbol:
VGSLX
Expense Ratio:
0.13%
Small-Cap Value Index Fund Admiral Shares
Owns stock in small value (this uses the Fama and French research when investing) in the U.S.
Ticker Symbol:
VSIAX
Expense Ratio:
0.07%
Total Bond Market Index Fund Admiral Shares
Owns high quality intermediate-term maturity U.S. corporate and government bonds
Ticker Symbol:
VBTLX
Expense Ratio:
0.05%
Short-Term Bond Index Fund Admiral Shares
Owns high quality short-term maturity U.S. corporate and government bonds
Ticker Symbol:
VBIRX
Expense Ratio:
0.07%
Inflation-Protected Securities Fund Admiral Shares
Owns the highest quality intermediate-term maturity U.S. bonds that will stay up with unexpected inflation
Ticker Symbol:
VAIPX
Expense Ratio:
0.10%
Intermediate-Term Tax Exempt Fund Admiral Shares
Owns high quality intermediate-term maturity municipal bonds that are not taxed at the federal level
Ticker Symbol:
VWIUX
Expense Ratio:
0.09%.
There is a long list of target retirement funds that own Vanguard stock and bond index funds at a very low cost of .08%. Simply select the fund that fits your desired asset allocation (70% stocks vs. 30% bonds and cash for example). You can type in to the search engine at Vanguard to identify how each portfolio is broken down based on the number that is attached to the fund. As always, factor in other money within your portfolio and the spouses, if applicable, when making this very important decision.
The Target Retirement Income Fund (VTINX) could be used as a low risk savings account during times of very low interest rates. The funds asset allocation does not change from the 70% bond (includes about 17% in TIPS) / 30% stock allocation while you invest there. One would consider using this fund when they are willing to take a small amount of stock market risk to try to get some kind of return that is hard to come by with cash and even bonds when interest rates are ;very low. This fund could be used as a all in one fund for the retiree who prefers simplicity.
Here is another way to look at target date funds. You can pick one with low fees and simply feed it as much as possible until you are ready to retire as it rebalances itself each year with a higher bond allocation as you appoach the year on the fund. In the early years, you will have a 90% stock allocation to U.S. and International stocks. When you hit the number on the fund, you will have about a 50% allocation to stocks. When you reach 3 years after that number, you will stop at 30% in stocks and that is where it stays while you own that fund.
The minimum investment for ETFs that work like index funds can be under $100 based on the current share price. See VTI and VBR as examples.
The minimum investment for Target Date Funds that own multiple index funds is $1,000.
The minimum investment for Admiral Shares is $3,000 for index funds and $50,000 for managed funds.
The expense ratio on each fund is current as of July 23th, 2024.
