Vanguard Target Retirement 2040 Select is a Target-date retirement fund that offers a diversified mix of Vanguard funds to help investors achieve their long-term retirement goals. The fund is designed for investors who are Targeting a retirement date of 2040 or later.
The fund’s asset allocation is based on the Vanguard LifeStrategy Growth Fund, which is made up of 80% stocks and 20% bonds. The fund rebalances its asset allocation as the Target retirement date approaches.
As of December 31, 2019, the fund’s asset allocation was 72% stocks and 28% bonds.
The Vanguard Target Retirement 2040 Select Fund has a low expense ratio of 0.15%, which is below the average expense ratio for Target-date retirement funds. The fund’s performance has been strong in recent years, with an annualized return of 9.06% over the past five years and a 10-year annualized return of 8.19%.
Conclusion: The Vanguard Target Retirement 2040 Select Fund is a great choice for investors who are looking for a diversified, low-cost Target-date retirement fund. The fund has performed well in recent years and offers a great mix of stocks and bonds for investors who are aiming for a retirement date of 2040 or later.
