The investment seeks to provide capital appreciation and current income consistent with its current asset allocation.
Principal Investment Strategies†
The fund invests in other Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2040 (the target year). As of September 30, 2015, the fund's asset allocation among the underlying funds was as follows: Vanguard Total Stock Market Index Fund 53.6%; Vanguard Total International Stock Index Fund 35.7%; Vanguard Total Bond Market II Index Fund 7.5%; Vanguard Total International Bond Index Fund 3.2%.
Principal Investment Risks
There is no guarantee that the Fund will achieve its investment objective. You may lose money by investing in the Fund. Please see the Fund’s prospectus or other disclosure documents for information about the Fund’s risks.
Performance & Expenses
|Fund/Benchmark Name||Qtr||YTD||1-Yr||3-Yr||5-Yr||10-Yr||Since Inception|
|Vanguard Instl Tgt Retire 2040a||1.80%||2.68%||-1.46%||N/A||N/A||N/A||-3.19%|
|MSCI US Broad Market Index (Gross)a,b||2.64%||3.57%||2.09%||11.18%||11.65%||7.57%||N/A|
|Morningstar Target-Date 2040a,c||2.04%||2.57%||-1.72%||6.25%||6.13%||4.54%||N/A|
Fund past performance, as shown, is no guarantee of how the fund will perform in the future. The performance shown has been annualized for periods greater than one year. Investment returns and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. For current performance, visit www.icmarc.org.
Fund performance is shown comparing it to a "benchmark" which may be a (i) broad-based securities market index (ii) a group of mutual funds with similar investment objectives, or (iii) a short term government backed debt obligation such as a U.S. Treasury Bill. An index is not available for direct investment, is unmanaged, and does not reflect the costs of portfolio management or trading. A fund's portfolio may differ from the securities held in an index.
a. Certain information including, but not limited to, benchmark performance or other performance and/or fee information, is provided by Morningstar, Inc., © 2016 All rights reserved. This information: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar and/or its content providers are responsible for any damages or losses arising from any use of information. Morningstar is a registered trademark of Morningstar, Inc.
b. The MSCI US Broad Market Index (Gross) represents the universe of companies in the U.S. equity market, including large, mid, small and micro cap companies. This index targets for inclusion 99.5% of the capitalization of the U.S. equity market. Gross total return indexes reinvest as much as possible of a company’s dividend distributions. The reinvested amount is equal to the total dividend amount distributed to persons residing in the country of the dividend-paying company. Gross total return indexes do not, however, include any tax credits.
c. The Fund’s Morningstar Category Average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on a fund’s historical portfolio holdings.
|Record Date||Ex/Payable Date||Income/Capital Gains Paid Per Share|
|Dec 29, 2015||Dec 29, 2015||$0.161000000|
|Equity Stylebox||Fixed Income Stylebox|
|Type of Asset||Percent|
Due to rounding, percentages shown may not add up to 100%.
Due to rounding, percentages shown may not add up to 100%.
|Cash & Equivalents||0.6%|
Exposure reflects fixed income securities only and will sum to the fixed income exposure of the fund.
Due to rounding, percentages shown may not add up to 100%. Exposure reflects fixed income securities only.
|Vanguard Total Stock Market Idx I||53.2%|
|Vanguard Total Intl Stock Index Inv||35.2%|
|Vanguard Total Bond Market II Idx Inv||8.1%|
|Vanguard Total Intl Bd Idx Admiral™||3.4%|
The Fund is not a complete solution for all of your retirement savings needs. An investment in the Fund includes the risk of loss, including near, at or after the target date of the Fund. There is no guarantee that the Fund will provide adequate income at and through an investor's retirement.
Please read the fund's prospectus carefully for a complete summary of all fees, expenses, investment objectives and strategies, risks, financial highlights, and performance information. Investing involves risk, including possible loss of the amount invested. Investors should carefully consider the information contained in the prospectus before investing. You may contact us to obtain a prospectus or to answer questions by calling 800-669-7400, emailing firstname.lastname@example.org, or visiting www.icmarc.org.
The source for this information is Morningstar, Inc. Copyright © 2016 Morningstar, Inc.® All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Morningstar, Inc. is a global investment research firm that is not affiliated with ICMA-RC. ICMA-RC does not independently verify Morningstar data.
Morningstar places funds in certain categories based on the fund's historical portfolio holdings. Placement of a fund in a particular Morningstar category does not mean that the fund will remain in that category or that it will invest primarily in securities consistent with its Morningstar category. A fund's investment strategy and portfolio holdings are governed by its prospectus, guidelines or other governing documents, not its Morningstar category.