In October 2017, Vanguard plan participants reached a tipping point: Half of all Vanguard participants are invested in a single target-date fund—and 57% are invested solely in a professionally managed allocation.
As client-owners of Vanguard’s U.S.-based funds, shareholders can help shape how the funds are operated and managed, Chairman and CEO Bill McNabb says in urging all shareholders to vote before a November 15 deadline.
When selecting a TDF, plan sponsors consider if one with an added alternative investment, or strategy, like an overweight to REITs, is a justifiable long-term choice. Vanguard Target Retirement Funds offer broad equity exposure without active bets.
Chief Investment Officer Greg Davis walks through some recent criticisms of indexing and explains why they don’t hold up to scrutiny.
Managing Director Martha King encourages shareholders to vote in Vanguard’s 2017 proxy campaign. Every shareholder’s vote makes a difference to help to elect the trustees of the Vanguard funds and approve fund policy changes.
An exciting football game can often be the bad kind of exciting—such as when your team’s high-priced quarterback fails to deliver on what his agent promised. The same might be said of some alternative investments.
The prospect of rising interest rates could make plan sponsors lose sight of the greatest risk to participants in target-date funds, along with the important reasons to invest in bonds.