Vanguard Target Retirement 2020 Fund (VTWNX)

The Vanguard Target Retirement 2020 fund (VTWNX) is a target date balanced mutual fund. This fund is popular among investors with retirement account (IRA) or 401(k) account.

Vanguard Target Retirement 2020 Investor (VTWNX)

The investment aim of Vanguard Target Retirement 2020 fund is to provide capital appreciation and current income consistent with its asset allocation. This investment fund utilizes its assets to purchase other Vanguard mutual funds according to an asset allocation strategy. It is suitable for investors about to retire and leave the work force in or within the target year of 2020.

Note: Its asset allocation will become more conservative over time.

Fund Details
Vanguard VTWNX fund
  • Fund Inception Date: June 7, 2006
  • Ticker Symbol: VTWNX
  • CUSIP: 92202E805
  • Beta (3yr): 1.09
  • Rank in category (YTD): 42%
  • Category: Target Date 2016-2020
  • Yield: 2.18%
  • Capital Gains: 0%
  • Expense Ratio: 0.00%
  • Net Assets: $ 14.18 billion
  • Number of Years Up: 4 years
  • Number of Years Down: 1 year
  • Annual Turnover Rate: 23.00%
Updated on 6/14/2012

This Vanguard fund is managed by Duane F. Kelly since June 2006. Kelly is the principal of Vanguard Group Inc. This Target Date 2016-2020 fund has dividend yield of 2.18%. The most recent dividend was distributed in December 2011 in the amount of $0.25. Its annual expense ratio is 0.00%. It also has 3-year beta risk of 1.09. The fund’s benchmarks are Target Retirement 2020 Composite Index and Dow Jones U.S. Total Stock Market Index. There is no sales load fee for investing in this fund, whether it is purchase fee, redemption fee or management fee.

Morningstar rated this target date balanced fund with 4-stars and Gold rating. Its YTD return is 8.16%. Based on the load adjusted returns, it has returned 4.97% over the past 1-year and 17.85% over the past 3-year. The best 1-year total return was achieved in 2009 with 23.10%.

To purchase this retirement fund, investors need a minimum initial investment of $1,000. This applies for either a brokerage or retirement accounts. Besides in Vanguard brokerage account, this best fund can be purchased from many other brokerages, such as JP Morgan, Schwab Retail, Td Ameritrade Inc, T Rowe Price, E Trade Financial, Fidelity Retails Funds Network, Raymond James, Ameriprise Brokerage, etc.

The asset allocation of this fund as of March 2012 is 64.76% in Stocks, 35.17% in Bonds and 0.07% in Short-term reserves. The top fund holdings are Vanguard Total Stock Market Index Fund (45.2%), Vanguard Total Bond Market II Index Fund (35.5%), and Vanguard Total International Stock Index Fund (19.3%).

According to the fund prospectus, investing in this Vanguard Target Retirement 2020 fund involves risks. The risks are stock market risk, country/regional risk, currency risk, interest rate risk, income risk, credit risk, call risk, allocation risk, etc.

  • Good track record
  • Low cost target date balanced fund
  • None
Disclosure: No Position


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