Vanguard Adds Fund to Target-Date Lineup

Vanguard is expanding its 11-fund target-date series with a new fund for investors who plan to retire and leave the work force in or within a few years of 2055.

The firm has filed a registration statement with the Securities and Exchange Commission for Vanguard Target Retirement 2055 Fund, and anticipates that the fund, aimed at investors 18 to 22 years old, will be available for investment in the third quarter of 2010. As with the existing Target Retirement Funds, the 2055 Fund will invest in other low-cost Vanguard index funds, according to the company.

The expense ratio of the new fund is expected to be 0.19%, similar to that of the other funds in the lineup.

The original six Vanguard Target Retirement Funds were introduced in 2003: the 2005, 2015, 2025, 2035, and 2045 funds, and an income fund. In 2006, Vanguard launched an additional five funds: 2010, 2020, 2030, 2040, and 2050. 

More information is available here.