Vanguard Target Retirement 2010 Fund (VTENX)

Vanguard Group offers wide range of low cost mutual funds. It also provides life cycle funds or target date funds or age-based funds. These target date funds are similar to regular balanced funds. Depending upon its category, it will allocate its assets in bonds, stocks and cash. One of the Vanguard life cycle funds is Vanguard Target Retirement 2010 fund.

Vanguard Target Retirement 2010 Inv (VTENX)

The investment objective of Vanguard Target Retirement 2010 fund is seeking to provide growth of capital and current income. The fund primarily invests in other Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire within a few years of 2010. It distributes about 50% of assets to stocks and 50% of assets to bonds & money market instruments. The fund’s asset allocation will become more conservative over time. Over time, the bonds and other fixed income portion in its asset will increase and the stocks portion will decrease.

Fund Profile
Vanguard Target Retirement 2010
  • Fund Inception Date: 06/07/2006
  • Ticker Symbol: VTENX
  • CUSIP: 92202E706
  • Beta (3yr): 0.95
  • Rank in category (2011): 8%
  • Category: Target Date 2000-2010
  • Yield: 2.65%
  • Capital Gains: 0%
  • Expense Ratio: 0.17%  
  • Net Assets: $ 5.13 billion
  • Number of Years Up: 4 years
  • Number of Years Down: 1 year
  • Average Duration: 5.87 years
  • Average Maturity: 7.81 years
Updated on 02/03/2012

This target date fund is managed by Duane F. Kelly since 2006. Kelly has worked in investment management since 1989. The fund also has an expense ratio of 0.17%. This fee is lower than typically average category of 0.56%. There is no sales load. The dividend yield of this top balanced fund is 2.65%. The fund’s total assets are $5.13 Billion. The investment style is large blend. For bond portion, it has high credit rating and the interest rate sensitivity is extensive.

This hybrid fund is rated with 4 stars rating by Morningstar. The Morningstar Analyst’s rating is Gold Rating. The fund’s 5-year average return is 3.26%. This top rated fund has returned 3.37% over the past year, and 11.18% over the past 3 year. The best 1 year total return was achieved in 2009 with 19.32%. The worst return was occurred in 2008 with -20.67%. Investment risks include stock market risk, asset allocation risk, management risk, credit risk, etc.

How can you buy this fund?

For investor who is interested in this fund, they can buy this fund with $1,000 initial minimum investment. This minimum investment is available to regular brokerage account and tax deferred account. This VTNEX fund can be purchased from 65 brokerages such as: Vanguard fund, Fidelity Retail FundsNetwork, Schwab Retail, Etrade No Load Fee, Met Life Resources MFSP Alliance List, etc.

Fund Composition / Portfolio

This balanced fund is part of fund of funds. As of December 2011, the underlying funds in this VTNEX fund are: Vanguard Total Bond Market II Index Fund Investor Shares (40.5%), Vanguard Total Stock Market Index Fund Investor Shares (32.8%), Vanguard Total International Stock Index Fund Investor Shares (13.5%), Vanguard Inflation-Protected Securities Fund Investor Shares (12.2%), and Vanguard Prime Money Market Fund Investor Shares (1%). The average duration of this fund is 5.87 years.

Disclosure: No Position

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